Investment or Vacation Home?

CONSIDERING INVESMENT OR VACATION PROPERTY?
SOME INSIGHTS FROM NAR STUDY
Observes David Lereah, NAR's chief economist, "Boomers believe in diversifying their assets, and most second-home owners see their purchase as being a better investment than stocks. A surprising majority of survey respondents hold multiple properties, and they are interested in purchasing additional homes."
While the U.S. Census Bureau data shows there are 6.8 million vacation homes in the United States and 37.4 million investment units in addition to 74.6 million owner-occupied units, the line appears to be blurring between how owners define themselves:
Twenty-one percent of vacation-home owners own two or more vacation homes. In addition, 34 percent of vacation-home owners report they own two or more investment properties. Lifestyle figures prominently in their choices with half of vacation homes located in resort areas near water or sports features. Distance is about 220 miles; most owners say they drive to their vacation homes. Most homes were in the $300,000 range, less than the value of their primary residence.
More than half of investment property owners, 53 percent, own two or more investment homes and 12 percent own two or more vacation homes.
Financial gain is the motivator, with most rental properties chosen to generate income and within easy access -- 10 miles. Most homes were in the $200,000 range, lower than the investor's primary residence.

Read the full article at http://realtytimes.com/rtapages/20060515_surveysecondhomes.htm

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