Rent, sell or create a wellness center from an old house

At the end of 2023, feeling burnt out and needing a quiet environment to work on my book, I opted for a one-day wellness retreat. Instead of spending $2,000 a night at a spa in the middle of the woods, I decided to retreat to my empty old house.

I immersed myself in the silence of the surroundings for 24 hours and it turned out to be a magical experience.

While I had always considered either renting out my home for semi-passive income or selling it, the priceless nature of health made me consider a third option.

Creating a wellness center from an old home

A wellness center is a specialized facility or program designed to promote and improve overall well-being, including physical, mental, and sometimes spiritual aspects. These retreats usually offer a range of activities and services aimed at improving participants’ health, relaxation and personal development.

Spa treatments, fitness classes, meditation sessions, healthy meals, educational workshops, and opportunities for relaxation and self-reflection can be common features of wellness stays. The goal is to provide a holistic experience that will help individuals rejuvenate, de-stress and adopt healthier lifestyle habits.

While I have no plans to run a wellness business out of my home, the convenience of calling massage therapists, chefs, and other services through my phone is easily accessible thanks to technology companies in the Bay Area.

I know the idea of ​​turning an unrented home into a place of healing may sound absurd, however, when I was recovering, it was not. One of my nicknames is “magnetic” because wherever I go at home, my kids and wife find me.

An unrented house nearby has other benefits in addition to the concept of a wellness center.

Rent, sell or create a wellness center

A place for relatives to stay private

Although my new house is more spacious, it lacks a guest house, so all aspects live under one roof. This can be challenging for those who have been used to living independently for many years.

Having an unrented house nearby with all the amenities would be an incredible luxury. They would have their own kitchen, bathrooms, living rooms, decks and privacy, eliminating chance encounters and unexpected surprises.

One of the common problems with family holidays is downsizing into much smaller accommodation than your usual home. For example, you may live in a 2,400 square foot, four bedroom, two bathroom home with your family of four, but end up in a 1,000 square foot two bedroom apartment or two 350 square foot studio hotel rooms on vacation. legs each.

Since my house is about 2,800 square feet, it could comfortably accommodate a family of five. Moreover, such a house would probably encourage more friends and relatives from all over the country and the world to visit. The allure of staying in a fully renovated house overlooking the ocean for as long as they wanted would make the prospect more appealing.

Rent, sell or create a wellness house for relaxation and healing

A place to quarantine when someone is sick

Next time you get a nasty disease, as I recently experiencedconsider an alternative to isolating yourself at home and risking the infection of your entire family – you can quarantine in a wellness house.

What price would you pay to protect every member of your family from disease? For those with immunocompromised family members, the value of a wellness home can be substantial.

Imagine you have a pregnant wife with a history of difficult pregnancies. Having a wellness home for you or your wife to retreat to could not only protect her, but potentially contribute to a smoother pregnancy.

A place for events and entertainment

Your wellness house can serve as a place for various gatherings – from parties to poker nights – without disturbing the comfort of your home. It is also an ideal space for hosting a wide variety of collections.

I attended a dinner fundraiser at a friendly wellness house, held in support of our city’s district attorney. It was an enjoyable event that provided an opportunity to network, learn and contribute to the cause of convicting repeat offenders.

For those who like to entertain guests, but also the value of privacyhaving a spa house for hosting parties while maintaining your primary residential address has significant value.

The cost of a home as a wellness center

All of the above sounds appealing, right? Centi-millionaires and billionaires often buy neighboring homes for reasons such as privacy, family, work and investment.

However, the primary problem with owning a wellness home lies in the operating costs. Even if you don’t have a mortgage, you still have property taxes, insurance bills and maintenance costs to cover.

To determine if home ownership is financially justifiable, you would add up the annual cost of owning a non-rental home and then divide that by the number of “events” you plan to host. Events may include retreats, parties or visiting relatives. Furniture and utility bills will be included in the price.

Event costs tend to be significantly higher than simply renting a hotel room or event space. From this basic comparison, owning a wellness home may not seem financially advantageous. However, it’s worth considering that you still own an asset that could appreciate or depreciate over time.

For example, say a wellness home is valued at $1 million and costs $36,000 per year to own (3.6%). If you do 12 events a year, each event would cost $3,000. If the house appreciates by 5%, or $50,000, you’re in good shape. However, if he writes off, the situation may not be so favorable. However, ownership of such an asset may be a a strategic way of decumulation.

Sell ​​or rent

The reality is that I am not rich enough to own a spa house indefinitely. I need to either sell or rent the house. I would only go the wellness house route if the asset was worth 5% of my net worth or less.

So far I have had zero problems owning my spa house because I have zero tenants and nothing has broken yet. Once I get the tenants I will have more passive incomebut I will also have other problems.

If I sell the house, I’ll be able to simplify my life and declutter my bank account again. It would relieve some stress because I’ll have one less thing to do. With less stress comes more happiness and the ability to focus my attention on the things I enjoy.

The only problem with the sale is that it is a fantastic house that I would like to keep in my portfolio for the long term, especially if through the real estate bottom. I prefer to sell an older, less attractive rental property in my portfolio.

I believe single family homes with panoramic ocean views on the west side of San Francisco will do well over the next 20 years. They exist plenty of local economic catalysts on the horizon.

I have to decide again whether to rent or sell since it’s a new year. What would you do? And have you ever thought about having a rental house nearby for wellness purposes? If so, I’d love to hear about your experiences.

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