• filter:

New home and pool financing question

  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
Hi everyone. I've been using this site as a reference for finance related questions for several years, but its time for me to finally ask a question of my own. Just to keep this on topic, I will be buying a new home and I will be installing a pool. I realize neither of those is an ideal decision for long-term savings, but its cheaper than drinking to drown out the sounds of a crying family, lol.

Ok, so here is the question. I am buying a new home here in the next few months and I will be adding a pool. I have two options on paying for the pool without demolising my savings. 

Option 1: purchase the home with 20-25% percent down and pay for the pool with cash
Option 2: purchase the home with 45-50% percent down then turn around and get a HELOC to finance the pool. 

Which would you all choose? Keep in mind, that this house is being purchased a very good price and even with 20% down I should still be closer to 30% equity. 

Member Summary
Most Recent Posts
is there a downside to above ground pools that makes inground more attractive?

rufflesinc (May. 30, 2017 @ 3:40p) |

1)  When it leaks.
2) The depth (Most ground side pools are about 4')
3) The look, a ground side pool isn't more attractiv... (more)

forbin4040 (May. 30, 2017 @ 3:51p) |

Is the house already built?

How much does the builder want for a pool?

scrouds (May. 30, 2017 @ 4:09p) |

Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
Buying a home to live in is usually a great move for long-term savings. Keeping it long-term is the biggest factor. The pool isn't going to make you any money, but obviously many people get enough enjoyment value from those.

I think your smaller down payment option is best, though I would explore other options for the pool than cash. Other kinds of financing may be available, including HELOC or via the install company.

Your claim that you will be buying below market price is very fishy. Is this a specific home or just your plan? Unless there are special circumstances like a home is not available to most buyers, the price you can get for it is by definition market value. You may have unrealistic expectations about this.

rated:
I guess I could have been more clear. I am buying the home from a builder at a $/sq ft that is a significant amount less than the rest of the neighborhood. There are some special considerations involved related to other business arrangements.

rated:
Option one makes more sense to me. Option 2 has you put the money as a down payment then go through to hassle of closing another loan to borrow it back.

Also, I'd imagine pool contractors offering their own type of financing so shop around.

rated:
Doesn't make sense to put more down only to pull it out with a heloc

rated:
20% down on the purchase, nothing more.  Pay cash for the pool.

Once the pool is in, you might be able to get the house reappraised to support a HELOC at that point, just for emergency liquidity purposes.  Don't go into it expecting that the pool will add much value though.  In many markets, a pool will add little to nothing at all to the market value.

rated:
Spend heavily on pool security and insurance. In many cases, once the home insurance company becomes aware of the pool, expect higher home insurance rates.
Historically privately owned swimming pools are classified as an attractive nuisance. Any kid that gets past that security and drowns or otherwise gets hurt is a lawsuit waiting to happen.

rated:
FW Option 3: Don't buy/build a pool, pay the local pool fee, PROFIT $$$$

rated:
I don't recommend a pool unless you need to bring the value of the house up before you sell it.

Here's some rules from someone who used to own a house with a pool.

Owning a Pool: Get's used once or twice a month during summer, very sparsely otherwise. You need to hire a guy to maintain it or it will go green and rusty.

Knowing someone who own's a pool : Priceless!

rated:
forbin4040 said:   I don't recommend a pool unless you need to bring the value of the house up before you sell it.

Here's some rules from someone who used to own a house with a pool.

Owning a Pool: Get's used once or twice a month during summer, very sparsely otherwise. You need to hire a guy to maintain it or it will go green and rusty.

Knowing someone who own's a pool : Priceless!

  While I generally agree that a pool is very expensive and should really be thought about before installing, the points above are not true.

If you've got kids the pool will get used a lot in the summer. When the weather cooperates my kids use the pool at least 3 or 4 times a week. And if you stay on top of proper maintenance your pool can be maintained with about 10-15 minutes of work each morning.

rated:
renaud said:   
forbin4040 said:   I don't recommend a pool unless you need to bring the value of the house up before you sell it.

Here's some rules from someone who used to own a house with a pool.

Owning a Pool: Get's used once or twice a month during summer, very sparsely otherwise. You need to hire a guy to maintain it or it will go green and rusty.

Knowing someone who own's a pool : Priceless!

  While I generally agree that a pool is very expensive and should really be thought about before installing, the points above are not true.

If you've got kids the pool will get used a lot in the summer. When the weather cooperates my kids use the pool at least 3 or 4 times a week. And if you stay on top of proper maintenance your pool can be maintained with about 10-15 minutes of work each morning.

It's really going to vary based on individual family dynamics.  Most of the families in my neighborhood that have pools are still members of the local club pool and do most of their swimming there.  In addition to lessons, swim and dive teams, there are the social aspects, kids and adults alike.  Neighbors with pools swim in their own pools very infrequently.  We've thought about installing a pool a number of times over the years but always came back to the perspective that we would probably never get that much out of it and would prefer the community pool club for our family.   

rated:
If you have a community pool then certainly that comes into play. I'd venture to say most of us do not have access to a nice community pool.

rated:
renaud said:   If you have a community pool then certainly that comes into play. I'd venture to say most of us do not have access to a nice community pool.
  In many areas (where I am, for example), almost all "new" homes are in mandatory hoas with pools.  Builders get kickbacks setting up the hoas because they have ownership in the management companies.
having a pool even shared between hundreds of houses usually at least doubles the hoa fees and doubles the management co's 30%+ cut of fees they get for doing nothing.
edit:added more qualifier words.  The pool portion of the fee for me is a group of hoas and runs over $300 a year for me and almost no one uses it and it's only open a few months.  I pay $550 total with non-gated public streets.  It's $200+ a year just to maintain a wall and strip of trees on the edge of the neighborhood and two lighted and landscaped entrances.

rated:
Bend3r said:     Almost all "new" homes are in mandatory hoas with pools.  Builders get kickbacks setting up the hoas because they have ownership in the management companies.
having a pool even shared between hundreds of houses usually at least doubles the hoa fees and doubles the management co's 30%+ cut of fees they get for doing nothing.

  
This is an extremely overgeneralized statement without enough qualifiers to be considered accurate or useful.

rated:
Bend3r said:   
renaud said:   If you have a community pool then certainly that comes into play. I'd venture to say most of us do not have access to a nice community pool.
  Almost all "new" homes are in mandatory hoas with pools.  Builders get kickbacks setting up the hoas because they have ownership in the management companies.
having a pool even shared between hundreds of houses usually at least doubles the hoa fees and doubles the management co's 30%+ cut of fees they get for doing nothing.

My area is littered with neighborhood pool clubs.  They're private equity clubs, not part of any specific neighborhood or any HOA.  Dues at mine run about $500/year.  Fairly common setup in the Midatlantic. 

rated:
dcwilbur said:   
Bend3r said:   
renaud said:   If you have a community pool then certainly that comes into play. I'd venture to say most of us do not have access to a nice community pool.
  Almost all "new" homes are in mandatory hoas with pools.  Builders get kickbacks setting up the hoas because they have ownership in the management companies.
having a pool even shared between hundreds of houses usually at least doubles the hoa fees and doubles the management co's 30%+ cut of fees they get for doing nothing.

My area is littered with neighborhood pool clubs.  They're private equity clubs, not part of any specific neighborhood or any HOA.  Dues at mine run about $500/year.  Fairly common setup in the Midatlantic. 

  $500 / yr is $42 month.
That's about the same price as maintaining your own pool (Labor, Chemicals, Power Costs).

I don't have a pool now, but my neighbor does.  He has been in his pool 3 times in the last 10 years.  And he spent $$$$ on relining the pool last year.  He uses it less than I predicted.

rated:
forbin4040 said:   
dcwilbur said:   
Bend3r said:   
renaud said:   If you have a community pool then certainly that comes into play. I'd venture to say most of us do not have access to a nice community pool.
  Almost all "new" homes are in mandatory hoas with pools.  Builders get kickbacks setting up the hoas because they have ownership in the management companies.
having a pool even shared between hundreds of houses usually at least doubles the hoa fees and doubles the management co's 30%+ cut of fees they get for doing nothing.

My area is littered with neighborhood pool clubs.  They're private equity clubs, not part of any specific neighborhood or any HOA.  Dues at mine run about $500/year.  Fairly common setup in the Midatlantic. 

  $500 / yr is $42 month.
That's about the same price as maintaining your own pool (Labor, Chemicals, Power Costs).

I don't have a pool now, but my neighbor does.  He has been in his pool 3 times in the last 10 years.  And he spent $$$$ on relining the pool last year.  He uses it less than I predicted.

  $42/mo might cover the maintenance, but it won't cover the increase in insurance or liability. 

In my mind, having a pool is a decrease in home value. Wife and I are shopping for a house currently - immediately ruled out any house with a pool. 

rated:
vnuts21 said:   
forbin4040 said:   
dcwilbur said:   
Bend3r said:   
renaud said:   If you have a community pool then certainly that comes into play. I'd venture to say most of us do not have access to a nice community pool.
  Almost all "new" homes are in mandatory hoas with pools.  Builders get kickbacks setting up the hoas because they have ownership in the management companies.
having a pool even shared between hundreds of houses usually at least doubles the hoa fees and doubles the management co's 30%+ cut of fees they get for doing nothing.

My area is littered with neighborhood pool clubs.  They're private equity clubs, not part of any specific neighborhood or any HOA.  Dues at mine run about $500/year.  Fairly common setup in the Midatlantic. 

  $500 / yr is $42 month.
That's about the same price as maintaining your own pool (Labor, Chemicals, Power Costs).

I don't have a pool now, but my neighbor does.  He has been in his pool 3 times in the last 10 years.  And he spent $$$$ on relining the pool last year.  He uses it less than I predicted.

  $42/mo might cover the maintenance, but it won't cover the increase in insurance or liability. 

In my mind, having a pool is a decrease in home value. Wife and I are shopping for a house currently - immediately ruled out any house with a pool. 

  also doesn't cover construction costs.
I'm a big pool guy. Always wanted one growing up. Now I will never own a house with one. Not worth the hassle. I'd rather pay an extra $25k for a house that's 1/2 mile away from a neighborhood pool.

rated:
vnuts21 said:   $42/mo might cover the maintenance, but it won't cover the increase in insurance or liability.I am sure that it really varies, but around here the added cost of liability insurance is less than $100/year (insurance agents have told me that the average is $50-$75/year), so this is a very minor consideration.

Pool laws vary state to state, but around here, homeowners with pools are shielded from liability to trespassers if there is a fence around it with an automatic locking/latching gate.

In my mind, having a pool is a decrease in home value. Wife and I are shopping for a house currently - immediately ruled out any house with a pool. Around here, for inexpensive and moderately priced houses, a pool will generally reduce its value or, at best, keep it neutral. It's the exact opposite with higher end houses, however, where pools are a huge selling feature and are sought after.

I am sure, however, that it really varies state to state.
  

rated:
vnuts21 said:   
forbin4040 said:   $500 / yr is $42 month.
That's about the same price as maintaining your own pool (Labor, Chemicals, Power Costs).

I don't have a pool now, but my neighbor does.  He has been in his pool 3 times in the last 10 years.  And he spent $$$$ on relining the pool last year.  He uses it less than I predicted.
$42/mo might cover the maintenance, but it won't cover the increase in insurance or liability. 

In my mind, having a pool is a decrease in home value. Wife and I are shopping for a house currently - immediately ruled out any house with a pool. 
It's more like $150/month for the pool club, since in my area, pools are only open from Memorial Day to Labor Day.

Anyway, there's no way a pool is going to make sense financially in most cases. Installation costs run from what, $20k to $100k or more? And then the cost to operate plus repairs and maintenance, increased insurance, etc. You can certainly find a cheaper place to swim. Having said that, like so many other things, it's a lifestyle choice. If it's what you want to spend your money on, go for it!
  

rated:
is there a downside to above ground pools that makes inground more attractive?

rated:
rufflesinc said:   is there a downside to above ground pools that makes inground more attractive?
1)  When it leaks.
2) The depth (Most ground side pools are about 4')
3) The look, a ground side pool isn't more attractive to home buyers.

rated:
Is the house already built?

How much does the builder want for a pool?

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017