Although baby boomers may have settled into their primary homes, they aren't predicted to remain there for long.
In 1995, a report from the American Resort Development Assocation revealed that over 34 percent of those polled believed there was a good chance they would purchase vacation property within the next decade.
In 1990, only 16 percent had similar response.
According to another report, the group most likely to purchase a second home, 35 to 54 year olds with no kids, could double by the year 2000.
The belief that boomers are ready to charge into the vacation home market has casued real estate experts to predict rising prices for second homes.
When considering whether a second home is a good investment, keep in mind that the return on your investment will include your use of the home and renting it out.
The purchase of such a large asset may be a risk, but you will be taking less of a risk buying a home that you will use and receive pleasure from.
Typically, those who buy vacation homes today are baby boomers - two income earners in their late 30's or early 40's.
Often, the boomers have built up equity in their first homes and to them, diversifying into real estate sounds appealing.
If buying a vacation home has caught your interest, keep in mind that its ownership will be similar to owning a small business.
If the home is not used regularly by you, you will need to entrust someone else to take care of it.
Please call me if you have interest in buying, selling or have a need for property management services!
