Second-Home Smackdown

By Day 3 of my summer vacations I’m usually in a car, driving around in very hot weather, looking for a vacation home that I can’t afford. Day 4 I’m still looking, but slowly realizing it’s not gonna happen and Days 5-6 are spent laughing over how ludicrous it would be to buy a second home when I can barely afford my first home. Day 7 I get on a plane, safely pulling away from the madness for another 358 days. This is my annual cycle and I’m sure there are many others out there who do the same thing.

This summer, Cape Cod was the location of my second home dreams (that’s a photo of Ballston Beach in Truro above). In prior years it was Rehoboth, Del., and Saratoga Springs, NY. As usual, I always come to the conclusion that I am better off renting a place for a week or two out of the year rather than buying a place. Why I get so delusional, I have no idea. However, a recent article in the NY Times titled “Hot Market for Second Homes Hits Slump” renewed my hope. Plus, Zillow’s data for Barnstable County shows the home values have only risen by 0.1% in the past year, compared to 12.9% annualized for the past five years, showing home appreciation has slowed markedly. With numbers like these, it seems the market is turning in my favor! I’m in the real estate catbird seat! Except, I fall into this lending loop where I’m playing with the security and equity of my first home to satisfy my second home fantasies. And, a recent article on CNN titled “Before You Buy That Vacation Home” says the moral of the second-home market is …”If you are going to buy, do it for love, not money.” Yes, yes, yes. I DO love it, I just don’t have the money. Ah, this too shall pass.

Non sequitur: Saw an article in the Detroit Free Press about a couple who is trying to incentivize the sale of their home by giving away a Hummer. Not only will the lucky buyer have to pay the mortgage on a $1.475 million house, but will have to afford filling the gas tank of a 4,700-pound beast.