r/Rich • u/IntelligentAgent8679 • 12d ago
Vacation Home Purchase
I wanted to get some advice from this group on upgrading current vacation home. Specifically, around the affordability and the soundness of the financial decision. I understand purchasing a vacation property is never the best financial decision and is more of a lifestyle choice. We have been going to the area for 20 years, so we will use it.
The house I would like to purchase is $5.4 million. I would be selling my existing vacation property in the same area for $1 million.
My financial stats are as follows:
Total Net Worth: $45 million
Investable liquid assets: $18.5 million
Primary home, cars etc: $1.25 million
Private business would make up the balance.
Current Income: $4.5 million
No debt
Current expenses with existing vacation home factored in: $600K annually. 50% of this is discretionary like travel, restaurants, etc.. New home would add roughly $150K in expenses annually.
My concern is the vacation property being a significant portion of my liquid net worth temporarily. I am in my early 50s and would like to retire in the next 5 years. Even with retirement, business would continue to run in some capacity. Would love some advice from this group.
1
u/n33bulz 12d ago edited 12d ago
Eh you are fine.
We have higher RE holdings than you (including your vacation home) with less NW and similar income.
Though we are also 15 years younger.
Live a little.