SAGE Financial Partners

"We should just buy a place here." 🏖️

Almost every client conversation about a second home starts with that sentence, said on the third or fourth morning of a really good trip.

It's rarely about the house.

It's about wanting more of the version of life you experience on vacation.

That's a valid thought, but the house is not always the cleanest path to it.

A few things worth pressure-testing before you buy:

🔹 The sticker price is only the start. Insurance, maintenance, HOA fees, furnishings, and other expenses can add up faster than people expect.

🔹 The rental tax rules are not intuitive. The 14-day rule, passive activity limits, and depreciation may change the math. Be sure to check with your tax, legal, or accounting professional about how the rental tax rules would apply in your situation.

🔹 Paying all cash vs. financing isn't always straightforward. Don’t overlook the opportunity cost if you’re considering paying all cash.

🔹 Will the kids want it? Agree on it?

None of this is a reason not to buy. Plenty of clients have and love it.

It's a reason to do the numbers and have the family conversations before the offer, not after.