The Perfect Up North Property

[hermie]

Very pleased with Property taxes on my Vilas County lakefront home. You also have to remember that you are not getting much for those taxes, pretty much school if you still have kids that age if you live here, snowplowing in the winter, emergency services are volunteer in our little town, fire dept as well. We have already timed it and it's a tossup to drive to emergency room in Minocqua or wait for Paramedics. That was based on a neighbor waiting for the ambulance while I waited with her. So you have to take that all into consideration as well.
I would have to agree taxes in Vilas are really fair. We have also thought about what we would do if there was a medical emergency and I am guessing we would just drive ourselves to the hospital if we were able to.

 

[goofy600]

Property taxes are based upon assessed value. Doesn't matter if the property is lake, recreational, residential, etc. although those things can have an affect on the assessed value.

Yes you are correct but assessed value includes the land value and lake property is almost always going to be valued more than land of equal sizes.

 

[whitedust]

Remember you can only vote from your permanent address. Second home owners mostly waterfront property taxes keep the Northwoods humming but can’t have influence in elections. In lots of ways that isn’t fair but the way it is.

 

[uncle_ed]

Having a 2nd place to get away is nice and should be just that....a place to get away from the "normal" routines and enjoy something different. Make sure there is plenty to do close by whether it be hunting, fishing, water sports etc. just make sure there is stuff you enjoy close by or at least within a reasonable drive.
As the world heats up living around the great lakes makes more sense than ever. How nice is it when I hear how hot it is down south and I am sitting hear in 75 degree weather and loving it. I live within 2 miles of lake Michigan and just love the moderating effect the big lake gives me in the summer and lake effect snow in the winter. Now that I retired and live hear full time I may add air conditioning to the house but so far dont need it!

 

[pclark]

As you age you most likely will make a decision on whether having two properties is right for you. I did it for many years but then got tired of maintaining two homes, paying two sets of utility bills, insurance, and property taxes. It got to be too much after I got into my sixties, also, driving a gas guzzler Chevy Tahoe 4.5 hours back and forth with todays fuel costs sucks a lot of your discretionary money up pretty quickly. It's not for everyone but we are glad that we bought our place and moved up here permanently, will it always be our permanent residence? I can't answer that, but for now it's where we want to be.

 

[whitedust]

As you age you most likely will make a decision on whether having two properties is right for you. I did it for many years but then got tired of maintaining two homes, paying two sets of utility bills, insurance, and property taxes. It got to be too much after I got into my sixties, also, driving a gas guzzler Chevy Tahoe 4.5 hours back and forth with todays fuel costs sucks a lot of your discretionary money up pretty quickly. It's not for everyone but we are glad that we bought our place and moved up here permanently, will it always be our permanent residence? I can't answer that, but for now it's where we want to be.

Your have a constructive frame of mind for Northwoods living. I loved it up there at your age but family events change over the years and that’s what’s most important in life. I don’t resent one day of my life of the 16 years I lived in the Northwoods and I’m slowly adjusting to new home and life in SE WI. I still live on water but miss snowmobiling from my front door big time. I can still ride farm fields here but have to trailer to the trail head and conditions deteriorate quickly. Me and my buds spend at least 1 week snowmobiling in Vilas and the UP hoping for 2 weeks this season!

 

[ICT Sledder]

Property taxes are based upon assessed value. Doesn't matter if the property is lake, recreational, residential, etc. although those things can have an affect on the assessed value.

I don't understand your post. Surely you're not saying that the view, location or use of a parcel does not impact property taxes?

 

[ddhanna]

I don't understand your post. Surely you're not saying that the view, location or use of a parcel does not impact property taxes?

Only if it impacts the assessed value. Local tax rate X assessed value = property tax.

 

[pclark]

Your have a constructive frame of mind for Northwoods living. I loved it up there at your age but family events change over the years and that’s what’s most important in life. I don’t resent one day of my life of the 16 years I lived in the Northwoods and I’m slowly adjusting to new home and life in SE WI. I still live on water but miss snowmobiling from my front door big time. I can still ride farm fields here but have to trailer to the trail head and conditions deteriorate quickly. Me and my buds spend at least 1 week snowmobiling in Vilas and the UP hoping for 2 weeks this season!

I hear you Pete, I would love to stay here as long as I can but health and family will also be a factor in what comes down the road for us. Sounds like you have a great spot down there.

 

[indy_500]

Before I blew the profit from selling my old house on two new vehicles, along with end of winter thoughts (every winter) I have often thought about purchasing something up there as well. Don’t need much land, always pictured either old and small that needed a gut and remodel, a manufactured home, or build something small myself along with a modest garage for the toys. I have however always come to the same conclusion. I’m not a water guy, and I enjoy the many activities we have down here in the fox valley for the summer, so this would be a strictly winter property. If I had to guesstimate, I spend less than $2k per winter on lodging. Let’s say I ride for the next 40 years (until I’m 68), if I spend $1750 per year on lodging for 40 years, that’s $70k. There’s no way I can pay for a property/2nd home, maintain it, and pay property tax and utilities in a 40 yr timespan for $70k or less. I also have the freedom to go to whatever area I’d like (and wherever the snow is at), with no work involved or strings attached. Sure, would be really nice to have a place of my own to call (second) home, and leave all my stuff up there, but with a blue collar career, I just can’t picture myself justifying it.

 

[mezz]

That is a very sensible thought process, one that you have held from day one of any of us knowing you. Right for you is right for you, likewise with anybody else's view on this topic. Pick what works for you & go from there, it's all good.

 

[pclark]

Before I blew the profit from selling my old house on two new vehicles, along with end of winter thoughts (every winter) I have often thought about purchasing something up there as well. Don’t need much land, always pictured either old and small that needed a gut and remodel, a manufactured home, or build something small myself along with a modest garage for the toys. I have however always come to the same conclusion. I’m not a water guy, and I enjoy the many activities we have down here in the fox valley for the summer, so this would be a strictly winter property. If I had to guesstimate, I spend less than $2k per winter on lodging. Let’s say I ride for the next 40 years (until I’m 68), if I spend $1750 per year on lodging for 40 years, that’s $70k. There’s no way I can pay for a property/2nd home, maintain it, and pay property tax and utilities in a 40 yr timespan for $70k or less. I also have the freedom to go to whatever area I’d like (and wherever the snow is at), with no work involved or strings attached. Sure, would be really nice to have a place of my own to call (second) home, and leave all my stuff up there, but with a blue collar career, I just can’t picture myself justifying it.

I'd say you are doing well for a young guy, that's because you have common sense and actually think about things before you act on them. Your analysis makes a lot of sense for what you want. Just watch the real estate markets as I'm sure you do and if something comes up that fits your needs you might want to act on it. Real Estate is a good investment, on or off water, timing is everything.

 

[dfattack]

I'd say you are doing well for a young guy, that's because you have common sense and actually think about things before you act on them. Your analysis makes a lot of sense for what you want. Just watch the real estate markets as I'm sure you do and if something comes up that fits your needs you might want to act on it. Real Estate is a good investment, on or off water, timing is everything.

I was going to reply to Indy's post with a similar comment regarding investment. Real estate usually is a good investment, especially of you are able to benefit from it during the time you owned it. You would have to factor in the potential value of the investment at say age 68 (Indy's example) and see how it could appreciate in value by then. According to some posts in this thread it could be upwards of $1M. That's not bad. If you sold at that point then that could add to his retirement. I know there is capital gains, etc.... just another factor to consider.

 

[indy_500]

While I fully understand the investment perspective, you have to remember there was a timeframe from 2005-2015 where property values didn’t increase much, and although many of us property owners are sitting with a big grin right now (because of the increase in the last few years), I can’t picture values increasing much again until 2030 or beyond. All about timing!

 

[lofsfire]

I was going to reply to Indy's post with a similar comment regarding investment. Real estate usually is a good investment, especially of you are able to benefit from it during the time you owned it. You would have to factor in the potential value of the investment at say age 68 (Indy's example) and see how it could appreciate in value by then. According to some posts in this thread it could be upwards of $1M. That's not bad. If you sold at that point then that could add to his retirement. I know there is capital gains, etc.... just another factor to consider.

That was the first thing I thought of after reading Indy's post. My plan right now is to pass it to the kids but time, aging, and value, could change that as time rolls on... As others have said, this scenario play out a little different for everyone but I still think its nice to see the opinion's of others and feedback in this thread. I think it helps promote looking at it in different ways, other than the way we may want to see things. If you only looking a situation from one prospective you will miss things...

Indy I do agree prices have gone up fast in the last few years. Will they go up again? Its not guaranteed but the long game in the Market or real estate normally pay off in the end.

 

[whitedust]

While I fully understand the investment perspective, you have to remember there was a timeframe from 2005-2015 where property values didn’t increase much, and although many of us property owners are sitting with a big grin right now (because of the increase in the last few years), I can’t picture values increasing much again until 2030 or beyond. All about timing!

In your case where you think real estate will increase in 6 years or so is near future considering your young age and expected lifetime. Sure real estate has its ups and downs but in your lifetime I do think you will be smiling when you retire.

 

[Highflyer]

Before I blew the profit from selling my old house on two new vehicles, along with end of winter thoughts (every winter) I have often thought about purchasing something up there as well. Don’t need much land, always pictured either old and small that needed a gut and remodel, a manufactured home, or build something small myself along with a modest garage for the toys. I have however always come to the same conclusion. I’m not a water guy, and I enjoy the many activities we have down here in the fox valley for the summer, so this would be a strictly winter property. If I had to guesstimate, I spend less than $2k per winter on lodging. Let’s say I ride for the next 40 years (until I’m 68), if I spend $1750 per year on lodging for 40 years, that’s $70k. There’s no way I can pay for a property/2nd home, maintain it, and pay property tax and utilities in a 40 yr timespan for $70k or less. I also have the freedom to go to whatever area I’d like (and wherever the snow is at), with no work involved or strings attached. Sure, would be really nice to have a place of my own to call (second) home, and leave all my stuff up there, but with a blue collar career, I just can’t picture myself justifying it.

What if that said small property you paid say 100k was valued at 250k 40 years later? Not all real estate goes up but if you have the right location it sure can earn you some money. Anyone who had a house in Northern Wisconsin since pre COVID is likely up 40% in value today. It might not stay there but it has so far especially if you are on the water.

 

[dfattack]

While I fully understand the investment perspective, you have to remember there was a timeframe from 2005-2015 where property values didn’t increase much, and although many of us property owners are sitting with a big grin right now (because of the increase in the last few years), I can’t picture values increasing much again until 2030 or beyond. All about timing!

you are correct. But you are talking about a period of time that for real estate isn't that long ago. I know you are similar in age to my son so...still young. Appreciation in value throughout the 70's and 80's were very good. My parents bought a house in 1974 for $125,000 and sold it for a fuzz over $1M in 1996. Lived in it the entire time so was a good investment for them. For someone buying in their 30's and can hold it for 30+ years the appreciation might be worth it. Lots to consider and ongoing maintenance is definitely something to consider. I'm just illustrating one point of view from the investment side. Allows you to diversify your retirement portfolio a bit.

 

[dfattack]

That was the first thing I thought of after reading Indy's post. My plan right now is to pass it to the kids but time, aging, and value, could change that as time rolls on... As others have said, this scenario play out a little different for everyone but I still think its nice to see the opinion's of others and feedback in this thread. I think it helps promote looking at it in different ways, other than the way we may want to see things. If you only looking a situation from one prospective you will miss things...

Indy I do agree prices have gone up fast in the last few years. Will they go up again? Its not guaranteed but the long game in the Market or real estate normally pay off in the end.

Yes, I have avoided this thread mostly since my scenario is a little different than most. In my case, I'm a fourth generation on our chain of lakes in northern Wisc. Florence county. it started with one house in 1947. Two brothers who married two sisters. So close family. My son is the 5th generation. The families have gotten so big the original house (which became two in the 1960's) are busting at the seams. I was blessed to be able to build my own house on the chain in 2000 knowing something was going to have to give. I plan on passing my place along to my son one day. Our chain is small (550 acres / 9 lakes) but most of the property is multi generational so I'm not the only one with this plan. To me it's worth it. I never "close" the house in the winter since we come and go all year long. Ride when we can and relocate up there for most of the summer. I can work from there too except for meetings I have to attend. Maintaining a 2nd house is double the work so that's a factor but for me it's worth it. For others it may not be and I can understand it. It's not for everyone. Takes a commitment. Having the house fall apart will not appreciate in value as much as one that is maintained.

 

[indy_500]

What if that said small property you paid say 100k was valued at 250k 40 years later? Not all real estate goes up but if you have the right location it sure can earn you some money. Anyone who had a house in Northern Wisconsin since pre COVID is likely up 40% in value today. It might not stay there but it has so far especially if you are on the water.

I hear you loud and clear. My first house I bought in 2016 for $130k, sold in 2020 for $225k, bought my second house in 2020 for $350k and could probably sell for close to $450k as it stands. I am fully aware of real estate appreciation.

I’m not trying to say owning a 2nd home is a “bad idea” by any means. It is truly a dream/goal of mine. Just stating there is a lot of considerations that need to go into the buying process. I would guesstimate $3000 might be close to average for property tax for someone with a 2nd home? $3000x40 years is $120k. Again, I’ll never spend $120k in lodging in 40 years time. But I’m also not a northwoods summer guy that wants to be on the water, so my use would be limited and seasonal.

With the younger generation (my generation) struggling to afford home ownership, it will be interesting to see what the future holds for “up north” vacation homes.