OT: Northern Michigan lake property

My parents had a place on Higgins Lake. I've owned places north of Northport and now have a place between Manistee and Frankfort.

I have had a second home for 30 years and have loved it. But it makes little financial sense - you could rent lots of places in lieu of purchasing. For me I prefer owning.

The cost of taxes on a second home is high - it is taxed as a non-homestead and those vacation areas love to place the tax burden on second homes.

For remote work it has only been within the last 5 years that I have had access to high speed internet, so make sure to check that.

For me distance plays a role. Four hours or less is best for me. Having a place in Northport made weekend visits difficult. I like being on the Lake Michigan as I find it much quieter than an inland lake with all of the boat and jetski noise. I also love sunsets and being able to take long walks on the beach. But you can't have a dock and boat on Lake Michigan.

My brother and I tried to own a cottage together. That did not work even though we are close friends. His wife rode a broom and typically cottages are small making sharing on the 4th of July difficult. Splitting costs, maintenance etc can be hard. My sisters however owna cottage together and it seems to work fine - but one owns 75% and the other 25% so maybe that helps.

I haven't read every comment, but have you also considered the lower westside? We bought a place in Douglas with family members 2 years ago and it's been great.  Very easy to get to and use from metro-Detroit, especially for quick trips.  

I was hesitant to buy my yacht but I am sure glad I did.

I’ve been coming up to the Glen Arbor/Traverse City area for years, and finally made the move up in July. Have not regretted it for a second. Beautiful landscape in the summer, lots of great restaurants, vineyards, cideries, and bars. It’s a great move, but I would recommend convincing some friends/family to come up with you. It’s a lot more fun to enjoy the area with fun company around!  

My Grandmother bought a cottage on Platte Lake, near Beaulah, it was shared with my Dad's three sibling's families. It was great, and it's a great area IMHO. My Dad and his siblings sold the cottage in 1994 since no one in the family lived in Michigan anymore. To this day I wished we had kept it. When my kids were small we would rent on Glen Lake, but as they got older they preferred getting a place in Grand Haven (my hometown) on Lake Michigan.

Good luck in your quest!

Absolutely worth it if it’s in the budget.  My family has a very modest little cabin up north (not on a lake) and it’s my favorite place in the world.  
 

Just make sure to find out what the internet situation is if you plan on working 

The one thing I'll add to discussion that is touched on, but worth repeating, is the concept of utilization.  We had a cabin that we shared with other family for many years in the Paw Paw area.  All the families involved decided to sell it years ago because of one thing: low utilization. 

It was well utilized when me and my cousins were young.  And it was such a great experience for all of us.  However, as we got older, it got used less and less.  And it got in the way if you had the urge to take a vacation to Mexico or Europe for example.  "why go to Mexico when we have this nice cabin in Paw Paw that we pay for"

We now rent a cabin every year instead.  Much easier.

At the price range you're talking I'd probably try to find a place to rent for a summer first and see how that goes rather than buying in such an over-heated market. For what you'd pay in taxes / insurance / maintenance / utilities each year you could probably get a heck of a place, and even moreso if you add in the interest costs of a mortgage.

Also be honest with yourself about the family situation. You mention spending a month or two up there in the summer, and presumably that's also when all the other owners will want to be there. I don't know the nature of your work, but trying to get work done with a house full of family members on their vacation can be pretty tough. And that doesn't even get into the old axiom about not doing business with family.

I would absolutely recommend northern Michigan lakefront property, if you can find the right place/price. Amazing area, incredible in the summertime, still fun in the winter (lots of ski areas nearby). Upkeep is a real concern, but don't let that stop you. There are lots of great inland lakes Up North with a wide variety of situations and pricepoints. Look around and, as other posters have mentioned, go rent a place on some lakes to give you the feel of what you're getting into.

Here's my story: I grew up in Grand Rapids and never spent any appreciable time in Northern Michigan through high school. After college, post-college, etc. I moved back to Grand Rapids with my new wife, who also happened to be from GR. Her family had been going up to Torch Lake for her entire life, always renting for a week with family friends, etc. I came along for the ride and fell in love with Up North and Torch.

Fast-forward a few years, and The Great Recession came about along with its real estate bust. Prices were as low as ever and availability was the most Torch Lake had ever seen. I figured "now or never" and bought in 2010. I have never regretted it. My wife and kids basically move up there for the summers, while I work and go up every weekend I can plus a couple of full weeks of vacation. We're using it more and more off-season these days too: skiing, after-Christmas trips, long weekends, etc.

Yes, upkeep of a second home is a lot of work at times, but there are plenty of rental management companies to help (if you choose to rent it out) or other service providers/neighbors/etc. to help you. My story isn't great for you because real estate is a bit overpriced right now, but these things are cyclical, and you can find hidden gems sometimes, especially if you're willing to do some updating yourself.

Definitely give it some thought and a good look. Best of luck!

TL;DR: Expect to pay a premium!

Not exactly on topic, but maybe relevant. 

We’ve been looking at vacation property in Wisconsin within a reasonable drive from Chicago. For anything remotely resembling a second or vacation home, prices have been through the roof. 
 

If a property is priced right, it has multiple full price offers within a day and we are seeing many go for above ask. Two recent examples:

1) a home sold for 22% above ask. They had 8 offers in the first day. We submitted 5% above ask, we offered a best and final and went up to 7%. Clearly we weren’t even close. The final price was 20% higher than any sale price in the history of the development. 

2) a vacant lot in a desirable area was bought in July 2020 and owner was going to build. Buyer realized/learned how busy builders were so put it back on the market and sold last week for 15% more than they paid.

As you stated, many (including me) think WFH will be an option available in a way that didn’t exist before. If we do end up buying, I know I’m participating in a crazy market, but I think the paradigm of how I will work for the balance of my career has changed. This becomes a lifestyle decision as much as a financial one. 

We bought a summer cottage on N. Lake Leelanau many years ago, and it was the best thing I've ever done for my family.   My wife and kids spend 10 weeks up there every year, and they love it.  (I go back and forth because somebody has got to work....)

I recommend Leelanau county for many reasons.  First and foremost, it is a peninsula and the roads don't go anywhere.   There is no one "passing through" and it is relatively quiet during the week even during the peak of the summer.  Weekends are busy, but that's the case anywhere you go.

1) Much further than Houghton/Higgins Lake area north makes weekend trips prohibitive.

2) I would never buy a place with other people, I've heard way too many horror stories