Huge decision...to buy a cabin or not?

[traveler]

Any opinions from guys who have been there, or considered it....

I'm looking at a cabin for the first time. I'm 51, married, 2 girls are 11 and 17. We saw (and looked at) a cabin in an area we've visited often and really enjoy. The girls all really liked it, and the idea of it, but it's a huge decision as it would change our finiancial picture for years.

Pros and cons...

Pros as I see them;

Good family fun

Acess to very good fishing

Good investment from what I can tell (price seems very right)

A new place (house,yard) for my wife to "play" with. OK, me too:)

Nice, solid "move in condition" building (no $$ needed to start enjoying it right away, although there are things I'd want to do soon enough)

Place for my girls to bring friends to "get away from it all", love to get them in the canoe and away from the high tech stuff

Cons:

Money. It would be a bit of a tight squeeze, especially for the 6 years till our home is paid off.

Have to change my screen name. Travel would become a luxury. Probably the biggest tradeoff of the whole deal. Pretty hard to head to Cabo or AK for a few years. Or from my wife's perspective, Hawaii or ??

Never a sure bet on it appreciating, especially in the current economy.

Distance; it a solid 3 hour drive. maybe some cities folks are used to that, but it's a long drive.

2 places to "keep up", although as above, the place is in good shape and needs nothing at present.

Taxes, of course, but I'm kinda figuring that into the whole money thing.

Might get sick of eating walleye:)

So who's got a cabin? Do you still use it a lot, enough to justify the $$?

Ant more things I should consider??

[palisade1kid]

I think you've already said it...a place to get away from it all...priceless!

[Steve Foss]

traveler, you've laid out all the standard pros and cons.

I would add that lake cabin prices, like other categories, are lower than they've been in awhile, and we know the economy will rebound because it always does. Investment wise, I'd say you're making a wise one. You'll need to give it two or three years anyway before you know for sure if cabin ownership/life is right for you, and in that time prices will have come back up, so you'll be able to get out of it without harming yourself financially.

Roughly, what part of MN/Wis is the cabin in? Closest town? From Duluth you can find wonderful lake property/cabins within an hour or an hour and a half, which is why the 3-hour jaunt made me wonder a bit.

We've had the family cabin near Bemidji since 1983. A lot of work goes into them, but not as much as for those folks who keep their cabins looking like Minnetonka. Our philosophy is that we keep up the cabin, and improve it a little, every year (it's the only way to really protect that type of investment), but we don't want to be chained to cabin maintenance, so we only do what needs to be done and don't obsess if the lawn isn't mowed or the leaves raked right "on time."

It's been a great place, particularly as our families have grown and moved on. My sister's and my kids have lived as far away as New York and Belgium, and the cabin (OK, it's really a 4-bedroom heated house) has served as a reunion and family rallying location, and always will.

If that's something that interests you, the cabin can be handed down from generation to generation with the stipulation that it's open to all family. Why not be the generation that starts a tradition?

[traveler]

Thanks for the insight Steve. Actually we'd kind of be neighbors...it's near Red lake. Love to fish there, and our hunting party has been hunting the same spot (public land) near Kelliher (20 miles away) for 35 years, another big plus for me in that I'm intimatly familar with the area.

Really nothing 'round here like that area, and the good thing there is I already live in the country here and have failry easy access to the northeast corner of the state.

Now whether the whole Red Lake "experiment" will continue to thrive is a question that looms big in my mind...

[DTro]

The only thing that might hold me back is if it wasn't a lakeshore property.

Buying rural property is rarely a bad investment, but lakeshore will usually appreciate at greater rate and or be easier to sell if need be.

I wish I was in the financial position to even consider a weekend getaway so I'm probably the last person that should be making recommendations

[CJH]

It can be a good investment, but also really look through your finances. You still need to have cushion in your budget to pay for car repairs, leaky roof, etc... Remember to include utilities, taxes, increase in gas going back and forth in your equation.

[traveler]

It is on the water. Thats certainly the biggest draw to it. I just spoke with the seller and requested platt map, tax info, etc... it's pretty exciting thinking about it all:)

[Tom7227]

You probably should look at the taxes. There may be a jump in the value once the sale is recorded, and I think there's a move to increase the value and taxes overall on recreational property. I'm no expert on it but the increase could really put a pinch on you.

As for your post on a contract for deed - bring a lawyer into the deal and be cautious about who is the servicing agent for the contract - who accepts the checks and puts the money where it belongs, especially if they escrow insurance and tax monies. Daughter nearly got in trouble with the IRS last year cause the servince agent screwed up what they reported in interest she paid.

[Wish-I-Were-Fishn]

This is an investment for the future. 6 years will go fast and then your house will be paid off, which will make the purchase easier.

My biggest issue with a cabin is the maintenance. I would rather rent a cabin every year to skip the whole maintenance issue, but it depends on how often you will actually use the place.

If you think you want it, I say go for it. Only then will you know for sure. However if you are not willing to forgo the other things you enjoy, like the trips you mentioned, then you might want to pass on it.

Good luck.

[Ralph Wiggum]

I think it's a great opportunity. I am sure you and your children would enjoy it for years to come!

If that's something that interests you, the cabin can be handed down from generation to generation with the stipulation that it's open to all family. Why not be the generation that starts a tradition?

Speaking from experience, this can get awfully tricky, and you need to be really careful. My wife's family has a cabin that was built by her great-grandfather. As you can imagine, there are quite a few families that have stake in this cabin now. Even though there are a good number of us that are open and willing to share consistently, there are some families that would prefer to be there alone, and even those of us that don't mind the crowd would like to enjoy the place alone at times. This has lead to some squabbling, and personally, I would happily sell our share and buy a place of our own, but as you'd imagine, there's a lot of sentimental value attached to the place for my wife. I would just keep it in the back of your mind that eventually, you'll have to lay down a set of rules for after you're gone (or plan on selling it prior to that).

[chasineyes]

I'll play Mr. Negative.

1. College Costs...better not hear any complaining.

2. Will the "girls" be open to spending time there. Ie; travel basketball, softball etc.. REALLY busts into weekend time.

3. Somebody mentioned taxes. They are phasing out the Limited Market Value. I have read about some 40% increases.

4. Insurance. IE; fire departments. My parents pay 30% more because they are out of the rapid response time.

5. Utilities. I'm sure you figured your going to have to heat it full-time.

6. Do you plan on retireing there. If so, is their hosptal services, community centers. Nothing worse than a 45 minute ride during a heart attack.

7. I personally don't see prices going back up for a LONG time. Only until the METRO markets improve, who is going to be buying those properties. Their are LOTS of people who have "overpaid" for homes during the last 7 years who WILL never have the equity to buy the 300,000$ place like the previous generation.

Other than that, go for it! I personally would look at retireing early (life is to short) and getting the heck out of this state (taxes)and yes the cold and ice.

[Chef]

If you buy at the right price and can afford the unforseen up-charges that will come, go for it.

Hey, you'll also have a place to hide when we're forced into communal living in our primary homes (ala post-Czar Russia) in the next few years!

[Steve Foss]

Originally Posted By: Steve Foss

If that's something that interests you, the cabin can be handed down from generation to generation with the stipulation that it's open to all family. Why not be the generation that starts a tradition?

Speaking from experience, this can get awfully tricky, and you need to be really careful. My wife's family has a cabin that was built by her great-grandfather. As you can imagine, there are quite a few families that have stake in this cabin now.

It's only tricky if you will property to more than one person. That's asking for trouble. Our family cabin is to be willed from a single person in the current generation to a single person in the next generation, and so on. And the only one who decides who to hand it down to is the one who is in sole possession. Now, that can create some cross-currents of resentment as well, but with only a single person having legal possession, many issues don't even arise, and many that do are settled quickly.

But that's really neither here nor there at the moment. I thought to bring it up in my initial reply but figured it was getting the cart WAY ahead of the horse. It is something for traveler and the family to consider down the road.

And traveler, keeping in mind what you said about that area, I think that tips the scales even farther in favor of buying the property.

[thedeadsea]

You only live once, so if you feel like it is "the place" and you can afford it withouth cramping your current lifestyle, go for it.

[traveler]

I'll play Mr. Negative.

1. College Costs...better not hear any complaining.

2. Will the "girls" be open to spending time there. Ie; travel basketball, softball etc.. REALLY busts into weekend time.

3. Somebody mentioned taxes. They are phasing out the Limited Market Value. I have read about some 40% increases.

4. Insurance. IE; fire departments. My parents pay 30% more because they are out of the rapid response time.

5. Utilities. I'm sure you figured your going to have to heat it full-time.

6. Do you plan on retireing there. If so, is their hosptal services, community centers. Nothing worse than a 45 minute ride during a heart attack.

7. I personally don't see prices going back up for a LONG time. Only until the METRO markets improve, who is going to be buying those properties. Their are LOTS of people who have "overpaid" for homes during the last 7 years who WILL never have the equity to buy the 300,000$ place like the previous generation.

Other than that, go for it! I personally would look at retireing early (life is to short) and getting the heck out of this state (taxes)and yes the cold and ice.

Lots of good ideas and responses, thanks all!

Lets see....the family/passing it on thing isn't an issue for now. No jackels waiting in the wings, and it's really too far in the future to be a concern (famous last words:)

College...the 17 yr old is more of the "send her to military school" type. Part of why getting her out and away is a good idea.

Both girls are very excited about it, but of cousre that may wane. Neither is a sports player, and the 17 yr old will likely be working with/for me during the summer so no summer job issues (for now) Hopefully thier enthusiasm will continue, they both have made multiple camping trips to Big Bog ( and other) campgrounds, as well as the inlaws cabins, and really enjoy it.

Don't know anything about the "limited market value" but will look into it, as well as the increased insurance angle and possible lack of fire/medical care.

It's been heated minmally by baseboards, water turned off in the winter, which is what I would see doing in the foreseeable future. Question there.....how does lack of use for 7-8 months affect the new mound system??

No plans to retire for 15 years, more for my wife, so it's a little far out to be a major concern at this point.

Resale value also isn't a huge concern, as I'm pretty sure we'll get it at a pretty darn good price from what I can gather, and it will still be in the lower range of lake properties which will keep it more saleable than many places.

Waiting for some answers from the seller now, will see how it goes....thanks again all.

[grab the net]

We are in the same age bracket, my children are older than yours, 24 and 21. We bought a lake place two summers ago and ask ourselves why we didn't do it sooner. We have spent one full winter and two full summers. It is wonderful, a place to get away, a place to meet with friends and family, a place to be alone if that is what you want at that particular time. The place we bought is only an hour and fifteen minutes, just far enough to feel like we are away, but close enough to go for a day trip if we need one. Working on the lake place just doesn't seem like work. I discovered that I love watching birds, I now have a half dozen feeders I keep full of suet, sunflower seed, thistle seed, safflower, etc.. Pilleated, Downy, Ladderback, Nut hatches, Finches, Grossbeaks, Cardinals, Bluejays, and birds I don't know what they are called, all grace our feeders. Plus being able to fish right out the back door is pretty great to. Sounds like you are asking yourself all the right questions, hope you find yourself at "Your Lake Place" on the opener.

[knoppers]

I bought a lake cabin 12 years ago, and it was the best thing I ever did, no regrets what so ever. I did a 10 year contract for deed, so now its payed for.

I go there almost every single weekend, but less in the winter since its a three season. I like it so much, I plan on moving up there sometime soon hopefully, or in the near future.

I also use it as a base camp, I have a pontoon, and the boat in the garage, so the boat gets on all the area lakes. great hunting with all the public land in the area, and some of the best snowmobiling around.

I bought at the right time, as the prices were still low, and the value still is going up, I have tons of equity. like said, it is easyier to re sell a lake place.

[traveler]

Yup, if it happens it'll be before spring for sure. We've been birders for years, but haven't been able to do much at our current house because we have barn cats (because we have horses and a barn) and there was no way i was gonna attract birds for the da%$ cats.

This place being on the water and fairly wooded should be great for birding. A big plus:)

[thebman]

My wife and I are just a bit younger than you with kids about the same age and we just bought a place last spring. We had paid off the house early and did not like the thought of losing more money in the market so we decided to do something we always wanted and bought the lake cabin. It was a tough decision to go into debt again but this was always our dream and the timing was right. The kids love it and they know we will never be the "traveling sports" family that spends too many weekends at the tournaments. We bought a place we could afford that did not need a lot of work and like others have said "working at the lake is not like working at home". After a summer of family/friends memories this winter is way too long and we are desperate for spring. The cabin has a furnace so we could go up in the winter but our kids play basketball and we need to save a few dollars to buy some snowmobiles, so for this year we decided to close it up and wait for spring. Good luck with your decision, we have not regretted ours at all.

[traveler]

Our kids (well, one of them) are into dance, piano...lessons stick to the school schedule so we're good there.

The "cabin work" thing doesn't concern me much, but it does my wife 9she knows I'm lazy:) But this place doesn't need much so thats a plus.

Checked the Beltrami plattbook online and I like the setting and way the property sits in relation to the neighbors, which is important to me.

[SkunkedAgain]

We bought in 2004, but for an incredible price so we aren't upside down. We went in with another couple and haven't had one problem with shared use or management.

Sometimes we do look at how much it costs us per month to own the place, because that money could be well-used elsewhere. However, I can't put a price on how great it is to have a cabin to retreat to for outdoor stuff (fishing, hiking, hunting, etc.). My wife does like to travel more than me so this puts a serious dent into our travel budget, but that's the only real trade-off. My home maintenance requires much more time than the cabin. There's no mowing or landscaping of any kind (it's a cabin), and we take repairs as they come.

Take the plunge, it's worth it.

[jefflake]

We bought our cabin 5 years ago and have no regrets. Yes, there are maintenance things to do and so forth, but it's worth it. Life's to short....if you can afford it, go for it !!

We tore down our cabin last fall and are in the process of building a year round house on the lot. Can't wait to move in in late April or early May.

[PierBridge]

I say pass with the age of your kids. IMO you won't use it nearly as much as you had hoped. You can take a nice yearly family vacation and not have all he worries stated above.

[Fish Head]

If I had a dollar for every time I tossed around the idea of buying a lake home, I would probably have paid for a lake home by now. It's a very difficult decision.

One thing thats a big consideration for me, is keeping the kids coming up there for many years. I have 2 boys, 17 and 26. It would be great to have them coming up there for years and years. And of course bringing grandchildren up there with them someday too.

Good luck with whatever you decide!

[Farmboy1]

Well, I am in the much younger category with a 3 year old and a 18 month old, but the wife and I bought a "Fixer Upper" to say it nice 2 years ago. We have gutted it to the studs and rebuilt to what we want. All our spending of time and money has been on this for 2 years, and I am getting really close to being done.

My rational was that my kids are young enough to enjoy it for many years before they move away. It is close enough to home that I can go on a weeknight to fish it I want. I DO NOT have to drive across the TC, and it is on the best walleye/catfish fishery in MN. It has been great so far, and we have not even enjoyed it. Now being it was a huge Pile of steaming feces when we got it, but we don't owe a dime. I struggled with oweing money on something that we don't need.

Devils Advocate: My in-laws own a cabin near Brainerd. We avoid this place like the Plague. It is not fun for us to go and be forced into dealing with my MIL. They got it assuming we would always be there, but not worth the pain with staying at my wife's folks place. Simply not comfortable there and do not feel at home. Now please do not take this to mean anything about your family, but it becomes much harder for us to go home and stay with family after living on your own for a few years.