Luxury Housing Trends

June 13, 2005

Vacation Homes As Investments

More and more people are purchasing vacation homes. For some, it's just a way to make vacations easier and less hassle. But many are buying second homes with investment in mind. According to David Lereah in Are You Missing the Real Estate Boom?, "A vacation property, given favorable demographic trends, is a powerful, long-term investment, one that will significantly increase your ability to profit from today's real estate boom. In the most popular vacation markets, properties are appreciating at more than twice the rate of homes in the national housing market, suggesting that vacation purchases could be the most rewarding of all residential property investments" (p. 184).

Lereah goes on to talk about how vacation homes can be a good investment for families who can afford them because of their likelihood to appreciate more quickly than residential homes (especially in areas where there is limited buildable land, such as with beachfront properties). He also spends about a chapter talking about rental properties as investments; a vacation home can be both a place for your family to use and a way to earn rental income when you're not using it.

Sites he suggests are http://www.escapehomes.com/, a place for browsing vacation home listings, and http://www.neighborhoodscout.com/. Both sites have done articles on the fastest growing vacation home markets.

Source: Are You Missing the Real Estate Boom?

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