When to Buy Vacation House?
I am an incoming IB analyst in NYC and have always wanted my family to have a vacation home. I am thinking about splitting the cost of it with my cousin who is the same age with a good job.
What time is the best to buy a vacation home? And what is a good price range assuming I split with my cousin?
What has everyone’s experiences been? Thanks in advance for your time.
You're an incoming analyst, so I'd imagine you're 21-22 years old.
If you buy a vacation home at this point in your life, you're a fucking moron
Definitely agree with you that getting a Patek is the better option.
I was going to tell him to invest in Tai Lopez courses
In all seriousness, wait until you have kids that can enjoy it. Reassess when you are close to 40.
You should probably buy a vacation house after buying a primary residence
Btw I hope you realize you aren't really going to make that much money as a first year IB analyst, after you subtract taxes, COL, etc
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Any agencies in particular?
Sorry let me specify I don’t expect to buy one within the next 5 years but when is a good age to buy one? 26-28? How much should I have saved up and be making to comfortably purchase one?
There's a lot of variables here. What are you making at that age? How much family do you have? What kind of savings do you have? What are you saving for/is it just rainy day savings? What kind of vacation home do you want? Also, you're splitting it with your cousin. So you have to ask all of those questions all over again about your cousin and then reevaluate your priorities. Think about how much you would use a vacation home as well? If you stay in IB, you'll be an associate and your hours won't be too great such that you can enjoy a vacation home. Speaking of which, where is said vacation home? How far from you're place of work/home? How far from your cousin?
Look, my point is that there are far too many things to consider and you can't possibly have all the answers right now. Wait a couple years and then reevaluate your situation. In the mean time, just be an analyst and try to enjoy your life every so often. Try and take a vacation when you can, but save the home for the future.
Most of my friends in banking bought their first vacation house (Long Island, Vermont, Nantucket, etc.) in late twenties to early thirties. Most married other bankers as well, so it served as a tax break as well as a weekend escape.
Asking for a friend, what’s the tax break for marrying another banker? I wish I knew about this before marrying a non-banker...but seriously
As for OP’s question, stack your cash and your cousin’s cash and see what you end up with in 5 years. Also, be wary of the family split of the vacation home. Your cousin may be awesome right now but these are the types of arrangements that ruin families especially when all done on a handshake and the sanctity of a familial bond (i.e., sans something in writing)
Sorry when I mentioned “it”, I was referring to the vacation home, not the spouse. There’s zero tax advantages to marrying another banker or anyone making $200k. Most finance couples I know still file separately.
As a banker you have access to very very few tax breaks. Children are one but it’s a small tax credit and the other one will be your home or vacation home (up to $1mm mortgage debt). I’m certainly no tax expert and this doesn’t represent any tax advice.
I'm late 20s (weird to say that) and been thinking about getting like a 200k shack up in NH/VT to go snowboarding/nature stuff at. Probably wont do it for a few years though.
a better thing to do if you want to share your wealth is pay the cost of renting a house for your whole family to vacation at and help with airfare.
after you do this, you'll no longer want to buy your family a vacation home.
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