It’s sure hot out…so beach house puzzler

[LVSteve]

"...I hear such things like most individuals lack the ability to handle an unexpected $400 expense."

I think that would fall into the believe half of what you see, none of what you hear philosophy.

I see enough of that in Vegas to believe it 100%.

 

[Onomea]

"...I hear such things like most individuals lack the ability to handle an unexpected $400 expense."

I think that would fall into the believe half of what you see, none of what you hear philosophy.

From a May 2016 article in The Atlantic:

"Since 2013, the federal reserve board has conducted a survey to "monitor the financial and economic status of American consumers." Most of the data in the latest survey, frankly, are less than earth-shattering: 49 percent of part-time workers would prefer to work more hours at their current wage; 29 percent of Americans expect to earn a higher income in the coming year; 43 percent of homeowners who have owned their home for at least a year believe its value has increased. But the answer to one question was astonishing. The Fed asked respondents how they would pay for a $400 emergency. The answer: 47 percent of respondents said that either they would cover the expense by borrowing or selling something, or they would not be able to come up with the $400 at all. Four hundred dollars! Who knew?..."

Many Middle-Class Americans Are Living Paycheck to Paycheck - The Atlantic

 

[pawngal]

Doesn't have to be ocean front to be $1million+ A lot of the lakeshore homes here are valued/sold for well into the 7 figures. Most of the older cabins/cottages have been torn down and replaced with huge houses.
40 years ago I could have told you what families owned many of them and how they got their money. Many were from the meat packing/processing business, wholesale grocery, lawyers, doctors, dentists and a surprising number of farm owners invested in lake property. The most expensive lake home listed for sale is owned by a member of the Berkley family who started the fishing tackle company, Price $11,900,000. Several other high value places are owned by members of the Warren Buffet family. One farmer turned Harley Davidson dealer owns 5 or 6 properties.

 

[mrcvs]

From a May 2016 article in The Atlantic:

"Since 2013, the federal reserve board has conducted a survey to "monitor the financial and economic status of American consumers." Most of the data in the latest survey, frankly, are less than earth-shattering: 49 percent of part-time workers would prefer to work more hours at their current wage; 29 percent of Americans expect to earn a higher income in the coming year; 43 percent of homeowners who have owned their home for at least a year believe its value has increased. But the answer to one question was astonishing. The Fed asked respondents how they would pay for a $400 emergency. The answer: 47 percent of respondents said that either they would cover the expense by borrowing or selling something, or they would not be able to come up with the $400 at all. Four hundred dollars! Who knew?..."

Many Middle-Class Americans Are Living Paycheck to Paycheck - The Atlantic

So, what is it? We have an astounding number of individuals who cannot afford a $400 emergency, and, in other threads, it's stated having a net worth of many millions isn't uncommon. Perhaps that's a snapshot of America today. The super wealthy and the working poor, and not much in between. Perhaps the vast middle class isn't so vast anymore?

As for myself, no matter which way you cut it, I am middle class. At the higher end of middle class, fortunately, rather than the lower middle class. Now, I live in a fairly blue collar area and am better off than most which is why, I guess, I thought getting a place at the beach shouldn't be a stretch. I guess I'm of a socioeconomic group that's dwindling, and I see myself as better off than many neighbors at home, but despite thinking I'm well off, I can't hold a candle to the beach crowd.

If my observations are indeed true, it's sad. This country was built upon having most of us middle class. Work hard, and you can be middle class. The truly wealthy are exceptional at what they did, and thus, the exception and not the rule.

Am I correct, or not? If so, then the system is broken.

In any event, back to the beach house (or condo) approach. It's sobering to find one is a professional and still a place at the beach is a stretch. On the other hand, finding a place that is underpriced and will work, is a challenge. I find, oddly enough, I enjoy the challenge and perhaps being able to purchase any place I want just because I'm wealthy isn't so much fun.

Perhaps the thrill IS in the chase!

 

[Greyman50]

Having been to The Outer Banks of NC all my life, lived N of there, all I can say is look at the beach after a major hurricane hits. Pilings was all that was left of many places, Beach road washed away. I remember back in the 50s-60s beach houses were set Way Back from the sea, not built on the beach.

 

[Bald1]

MRCVS, I think most people who don't have 400 bucks bring their situation upon themselves. Definitely not all. But it seems that a lot of people aren't willing to do the work or make the sacrifices that lead to financial stability. My employer has a grocery distribution center that pays well and has Teamster benefits. You can start tomorrow and make $50k a yr stacking boxes. The guys that hustle make $75k. They would hire 20 guys tomorrow if they could find that many willing to work. Like you I feel fortunate to have what I have. But nobody handed me anything. I've been busting my hump and saving since I was 16. Sorry if I'm taking thread off course……..
One thing you might consider is buying a place that's not exactly what you want. After a few years sell it and upgrade. Similar to a "starter" home when you buy your first house.

 

[mrcvs]

MRCVS, I think most people who don't have 400 bucks bring their situation upon themselves. Definitely not all. But it seems that a lot of people aren't willing to do the work or make the sacrifices that lead to financial stability. My employer has a grocery distribution center that pays well and has Teamster benefits. You can start tomorrow and make $50k a yr stacking boxes. The guys that hustle make $75k. They would hire 20 guys tomorrow if they could find that many willing to work. Like you I feel fortunate to have what I have. But nobody handed me anything. I've been busting my hump and saving since I was 16. Sorry if I'm taking thread off course……..
One thing you might consider is buying a place that's not exactly what you want. After a few years sell it and upgrade. Similar to a "starter" home when you buy your first house.

You might be right here. If "minimum wage" is essentially at least $20 an hour in most places, and most companies are desperate for workers, it's hard to believe a $400 emergency could be so crippling. Maybe it's experienced by folks too lazy to work.

I might buy someday and upgrade. We shall see.

For me, not working was never an option. I also work an incredible number of hours but I probably wouldn't prefer otherwise.

 

[glenwolde]

The AirBnB crowd has driven up the prices on vacation properties. This is what happens when you have unlimited cheap money. Nobody buys them just for personal use. They rent it out weekly and use it a little themselves. The rentals end up paying for everything. Until something like COVID happens then you have to be able to carry the note on your own. Not risk free, but what is?

 

[mrcvs]

I forgot to mention I had recently watched On Golden Pond. A place on a lake doesn't seem to be any cheaper than a place at the seashore.

This thread was an eye opener. I just didn't see all this wealth out there, seeming to be a little better off than many living around me. I was taught thrift and that money is scarce. Now, many around me have much fancier houses, but I think also that comes with a much larger mortgage payment and less ability to save.

I feel like I am fortunate. I'm in the situation where if virtually any pre WWII Smith & Wesson revolver comes up for sale, if I want it badly enough, I can make it happen. I can't have everything I want, but if purchased selectively and spaced out, it's not crippling.

There was a time when a Smith & Wesson purchase was rare and spaced out, and anything with condition or rare was out of the question. If this is no longer the case, I feel truly blessed. But I guess the rarest of the rare Smith & Wesson revolver is a mere pittance relative to the cost of a beach house.

 

[Bald1]

The AirBnB crowd has driven up the prices on vacation properties. This is what happens when you have unlimited cheap money. Nobody buys them just for personal use. They rent it out weekly and use it a little themselves. The rentals end up paying for everything. Until something like COVID happens then you have to be able to carry the note on your own. Not risk free, but what is?

Am I reading that you are not a fan of vacation rentals like VRBO or BnB? Cheap money was a product of a booming economy. It allowed businesses to invest in themselves and expand creating even more jobs. People buying properties and renting them out is an investment. It's a business venture. It provides a service to the public that wants more than a hotel room. It also creates jobs in maintenance/house keeping and property management sectors. If it all falls apart maybe there'll be some bargains to be had.

 

[westernswede]

Well mrcvs, tomorrow the Mrs and I sign a contract for a nice waterview building lot in Chesconessex Virginia. The Chesapeake bay will be my new playground. Now this will be our new home not a second home. We are ready for softer winters.

 

[Bullet Bob]

"So, what is it? We have an astounding number of individuals who cannot afford a $400 emergency, ..."

An astounding number of respondents to a survey is not the same as the actual number of people in a situation. I've never responded to a survey, I figure they have a point of view they want to support, or that my life is none of anyone else's business.

 

[Mike SC Hunter]

In the early days of our marriage I went to wok many days with not enough money in my pocket to buy a Pepsi or Baby Ruth. Worked hard. Lots of overtime and wife worked too. We saved every nickel we could. Later in life this enabled us to buy a small farm that was next to my house. In 2003 we purchased a waterfront home on Clarks Hill Lake.( Backed up on the Savannah River between Ga. & SC) Both retired now and ALL debts paid off before we retired. We spend about 6-8 days a month at the lake house. It's in a gated community with a boat ramp and docks. My boats stay there.
Nothing was ever given to us. We worked for it all. We still save and are still debt free. I now have "pocket money". Our lake house has doubled in value. Though I'll never sell it. It's too much fun.

Anybody can do it. IF they work hard. Save. And invest wisely.

 

[John_M52]

Who is buying all the high end beach real estate in Southern California?

China. This is not a political statement. I have friends/family there.

 

[VictorLouis]

for the OP........

 

[Chuck24]

Having been to The Outer Banks of NC all my life, lived N of there, all I can say is look at the beach after a major hurricane hits. Pilings was all that was left of many places, Beach road washed away. I remember back in the 50s-60s beach houses were set Way Back from the sea, not built on the beach.

Don't forget the flood insurance, my late MIL lived on a river and 7 years ago it was 8000.00 a year and they want it all at once.

 

[chief38]

Many people as of late are millionaires just by virtue of their home. When you look at statistics of how many millionaires there are, they include real estate in the equation. Yea I know you can't spend a house, but it's still part of a persons net worth. If your mortgage is small or paid off than that is a huge factor for millionaire stats.

There are also many who have earned, inherited and amassed a fortune - not just here in the States - aside from their real estate properties

 

[Imissedagain]

The problem with living on or near a beach is a future of walking with sand in your shorts/bathing trunks.
Buy a 60' Sloop, Schooner or Catamaran and never suffer those irritations.

Did someone mention storm surge?
Haven't been South of the extended family's home/boat, in Key Largo, but heard the lower Keys were hit hard.
The Eastern Bahamas got wiped out with that last Blow.
Air America buddy's 47' sloop and cottage of 40+ years were trashed.
Couldn't even fly in to help our Bahamian neighbors early on.

 

[Dave.357]

Just find a empty one and move in .
Works on the west coast.
Make sure you hire a illegal alien
to do yard work.

 

[SPEEDGUNNER]

I hate the beach.

I saw "Jaws" in 1975 and have never recovered.

I don't like sand in my..., well you know where.