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 VIDEO

How KPMG is innovating the audit

KPMG's global audit team is using cognitive technology and alliances with tech and university partners to drive audit innovation. See how.

SPONSORED REPORT

States look to unclaimed property for revenue

This free report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.