The Swimming Pool Adds Nothing
Is it the right situation for Kelly to buy an in ground swimming pool?
QUESTION: Kelly is thinking of buying an in ground swimming pool. They have $53,000 in cash and savings. They want to spend $32,000 and their home is worth $180,000. The home is on a family farm, so they couldn’t sell it and get their money back. They make $58,000 a year and have no debt.
ANSWER: Most of the time, you can’t get your money out of a pool anyway. In your situation in a normal house, your house price might go up $10,000 or $15,000. I think you are probably trading several years of vacation for this. Based on your income, this is a very expensive purchase. The fact that you’re paying cash for it makes it all right. You can build the pool, but try to do it a little bit cheaper.