A Second Home in Your Future?


Sales of second homes are surging, as baby boomers seek investment and vacation properties in record numbers. A study by the National Association of Realtors (NAR) ( www.realtor.org ) said 23% of all properties purchased in 2004 were for investment while another 13% were vacation homes. NAR reported a record 2.82 million second-home sales in 2004, up 16.3% from 2003.

The typical vacation home buyer was 55 years old and earned $71,000 in 2003. Investment property buyers had a median age of 47 and earned $85,700. The median price of a vacation home was $190,000 compared with $148,000 for investment properties.

The most frequent motivation for buying a second home was to diversify investments. Others sought rental income or a family retreat. But nearly one of five second homes will become a primary residence after its owners retire.

TOP 10
Towns for Second-Home Investments

Asheville, N.C.
Park City, Utah
Ashland, Ore.
Port Townsend, Wash.
Beaufort, S.C.
South Lake Tahoe, Calif.
Daytona Beach, Fla.
Sunriver, Ore.
Myrtle Beach, S.C.
Charlevoix, Mich.

Source: EscapeHomes.com.

SPONSORED QUIZ

How well do you know small business?

There are over 30 million small businesses in the U.S., and many of them are optimistic in their outlook. Are you familiar with the obstacles and opportunities they are facing? Test your small business acumen with this quiz sponsored by Chase Ink®.

SPONSORED REPORT

In focus: Payroll

Providing payroll services that comply with ever-changing regulations and meet evolving employee and employer demands is no easy task. Paychex's Tom Hammond discusses common payroll considerations for CPA firms.