Dreams of a Second Home

     B and I have been going to the same barrier island outside of Charleston, SC, for three years now. We've rented several different places -- one on the beach, one in town, one by the river. We especially liked the townhouse we rented this year, so as we left I contacted the rental agency to see if we could book it for next year. They said they'd contact the owner and get back to us.

     We've been going for the month of February, which is out of season, so we got a pretty good rate this year. Then we heard back from the rental agency. The owner would be glad to sign us up for next year . . . at a 10% increase. Now, granted, we got a mid-winter rate this year, which was probably a 10% discount from the regular rate. But February will be out of season again next year, too.

     So we declined the 10% offer, thinking we'll take our chances come next winter. But it also got us thinking, once again: maybe instead of renting, we should buy a place. Why not? A lot of retirees, if they haven't moved to the Sunbelt full time, have a second home in the sun that they can use when they want, and rent out when they're not using it.

Vacation home ... what's it worth?

     Indeed, for a lot of people having a second home is part of the retirement dream. You can stay in your hometown with friends and family, but also have a small bungalow at the beach or a condo on a golf course. And then if you own a property you no longer have to spend countless hours rooting through the hotel sites or the home-share sites searching for a place you can afford that's available for the time you want to go.

     The problem is that you kind of tie yourself down to one place. If we owned a place in South Carolina, then we're probably going to South Carolina for vacation, whether we want to or not. Unless you have very deep pockets, it's hard to justify -- much less afford -- an alternate vacation to Europe, Mexico or anywhere else.

     But we're not big travelers, and we have no ambition to go on a cruise (trapped on a boat with nothing to do but eat ... yuck!), or buy an RV (driving a big lumbering rig and living in cramped quarters ... ugh!) or go on a tour to see the sites of Europe (and being herded around like a bunch of tourists? Not for us!). Besides, with two grandchildren in Charleston, chances are we will be going there on a regular basis. And we like the idea of owning our own place, feeling that we belong there rather than just dropping by as occasional visitors. Also, as an owner, we could invite family and friends to join us, or even let them use it by themselves when we're not there.

     But one problem, for us, is that we'd still be responsible if something goes wrong, even when we're not there. Just like owning your own home, we'd be the ones who'd have to step up when a window gets broken, the roof springs a leak or the refrigerator gives up the ghost. Also, we may be held liable if someone gets hurt falling down the stairs or slipping in the shower.

     Even so, we might still be able to make some money renting out a second home. In February I played golf with a doctor from Chicago. He told me he'd bought a house on the beach about three years ago. According to him, he rents it out for ten weeks in the summer and that pays for the whole thing. Anything more than that is a profit. And meanwhile, he can use it when he wants; and his son who lives in Washington, DC, usually takes his family there once or twice a year ... for free.

     Some people rent out their place by themselves. All you need is an account on airbnb or homeaway. We probably wouldn't do that. We know the people at the real-estate company on the island. They offer a rental program that, yes, would cut into any profit we might make, but would also relieve us of a lot of the responsibility for renting and maintaining the place. One thing we know. We do not want to purchase a second home ... and find out that all we've done is buy ourselves a new job.

     Another plus is that you can decorate your vacation home the way you want it and keep it nice. You can also leave your stuff there, and spare yourself the trouble of jamming your car full of sports equipment, beach chairs and other paraphernalia every time you go on vacation. And we would never have to pay airline fees for extra baggage if we decided to fly instead.

     As you've probably figured out by now, B and I are going through the pros and cons of owning a second place versus renting. It's a complex decision that requires careful thought. So maybe B and I should sit down and decide, realistically, how often we would use it, and for how long. If we're going to use it for two weeks, it might be better to keep renting. If we're going to end up going there for two months a year, it would likely be cheaper and more comfortable to have our own place.

     It would certainly be more convenient if our island paradise was closer to home. As it is, it's either a two-day drive, or else one very long, grueling day. If something goes wrong that would require our presence, it would be a major inconvenience. Maybe our son would want to help take care of it. But he's got a job; he's going to school; and he's got two kids. The last thing he needs is another responsibility loaded on his back.

     It would also be hard to keep up on the local happenings that might affect our property. Is a big tax increase on the horizon? A road construction? A flood management system? And B worries about global warming. If we buy a vacation unit that's five feet above sea level, how long before it's five feet under sea level?

     As you can see, we have a lot of thinking to do. The bottom line for us, for anyone, is: How much are you willing to pay in order to get that free vacation?