House in Upstate NY: talk me in or talk me out

This not really a RE finance question, but I am sure people here can opine. I am considering buying a "recreational property" in the Hudson Valley ( specifically the New Paltz area). The idea is to work from there during the extended summer and get out there on the weekends so my doggie can roam the property. I am thinking of spending 150-250 and pay cash.

(a) Do you think I am not thinking straight and if so, what am I missing?

(b) The prices look lower vs the levels 3-5 years ago (while I am not buying it as an investment), is that a trend that's expected to continue?

(c) Any other words of wisdom?

Comments (12)

Mar 11, 2019

Why pay cash? Assuming you have $250k to burn, buy some investment properties that cash flow positive for $200 and put $50 down on the upstate NY property. That way your other investments more than cover the mortgage. Sure, it's a little headache dealing with rental properties. But it could justify your Hudson Valley place for "free"

Mar 11, 2019

Or even take out a mortgage on the vacation house if you're renting in NYC. The after tax cost of a mortgage is pretty cheap. I'd rather put 20% down and let the rest ride on SPY. Or buy a bunch of high yielding dividend stocks if you're concerned about the mortgage payment.

Mar 11, 2019
Pokemon Master:

Or even take out a mortgage on the vacation house if you're renting in NYC. The after tax cost of a mortgage is pretty cheap. I'd rather put 20% down and let the rest ride on SPY. Or buy a bunch of high yielding dividend stocks if you're concerned about the mortgage payment.

I already own a place in the city and live in the city (also paid cash, but it was a special situation in 2008).

Yeah, I thought about the spooz plus a mortgage, but my job is so correlated with the equity markets and I already have so much invested in equities that I don't want it. The idea of finding an investment property (which sounds tough, to be fair) is more to my liking but that's a serious project.

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Mar 11, 2019
SponsorPromote:

Why pay cash? Assuming you have $250k to burn, buy some investment properties that cash flow positive for $200 and put $50 down on the upstate NY property. That way your other investments more than cover the mortgage. Sure, it's a little headache dealing with rental properties. But it could justify your Hudson Valley place for "free"

Ha! If I could find investment properties, I'd certainly buy investment properties first :) At the moment I am sitting on a large pile of cash and have no idea what to do with it (it's the usual equities are too expensive, bonds are on the rich side too). This is purely for recreation, though.

PS. If you have ideas on where to find investment properties, I am all ears!

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Most Helpful
Mar 11, 2019

Have you spent a fair amount of time there already and do you enjoy it? Wouldn't it just be easier to rent a place for a month or two? My worry would be that you feel 'obligated' to go, even if you don't really want to just to make sure a pipe hasn't burst or equivalent.

I've only been to that area a couple of times and it seemed to be full of a bunch of hippies and burn outs....whether you consider that a positive or negative, I couldn't say. It seems kind of boring to me personally, but once again different strokes yada yada.

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Mar 11, 2019
DickFuld:

I've only been to that area a couple of times and it seemed to be full of a bunch of hippies and burn outs

That perfectly describes me, thank you!

I like the area primarily due to rock climbing. Also, it's a college town and I am getting into the age when I might like to stare at college chicks :P

Mar 11, 2019
Mostly Random Dude:
DickFuld:

I've only been to that area a couple of times and it seemed to be full of a bunch of hippies and burn outs

That perfectly describes me, thank you!

I like the area primarily due to rock climbing. Also, it's a college town and I am getting into the age when I might like to stare at college chicks :P

The age when you like to stare at college chicks starts at about 12 and I don't think it ever ends. So, you're somewhere between age 12 to 120, if I had to guess.

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Mar 12, 2019

Ted Bundy alert

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Mar 23, 2019

lol

Mar 11, 2019

Go farther north into the Adirondacks

Mar 11, 2019
wicked awesome:

Go farther north into the Adirondacks

Yeah, that's cheaper but it's much longer drive and I want to stay under 2 hours. Plus, New Paltz has really good climbing AND other perks

Mar 11, 2019
Comment

I come from down in the Valley, where Mr. when you're young, they bring you up to do like your daddy done.