What factors drive 2nd Home Ownership? Myrtle Beach Real Estate

Posted in General Real Estate , Myrtle Beach Real Estate , Vacation Rentals

Article courtesy of the National Association of Realtors®

While the potentail investment returns from owning residential real estate are one of the motivations for buying and owning a second-home, there are additional factors that vary with the intended use of the home. For vacation-home owners, lifestyle considerations such as proximity to recreation areas or to a favorite vacation spot are often the most important motivations. With the oldest baby boomers just now reaching 60 years of age and the youngest boomers in their early 40’s, the lifestyle preferences of boomers will figure prominently into the future demand for vacation homes. In contrast,ownership of investment properties hinges on the financial gains owners expect from rental income or from appreciation in the value of their property. Thus,mortgage rates, the strength of the local economy and access to rental markets,whether in a downtown location or near major employers, are more important factors for investment property owners than vacation home owners. Also, investment property owners,more so than vacation-home owners, choose properties near their primary residence.

CHARACTERISTICS OF SECOND-HOME OWNERS
■ The typical vacation-home owner is 59 years old,while the median age of investment property owners is 55.
■ Vacation-home owners reported a median income of $120,600 in 2005. The median income of investment property owners was $98,600.
■ Over three-quarters of second-home owners are married.
■ For nearly half of all second-home owners,their primary residence is in the suburbs.

VACATION-HOME OWNERS
■ While three-quarters of vacation-home owners purchased their home to use for vacations, one-third of owners reported that it was a good investment opportunity as well.
■ The typical vacation home is located 220 miles from the owner’s primary residence.
■ Nearly half of vacation homes are in resort or recreation areas.
■ Vacation-home owners spend a median of 39 nights in their home each year.

INVESTMENT PROPERTY OWNERS
■ Nearly two-thirds of investment property owners purchased their property for the purpose of generating rental income. Half also viewed their property as a way to diversify their investments.
■ Thirty-five percent of investment properties are located in a suburb,while over one-quarter are in a central city or urban area.
■ Half of investment properties are detached single-family homes.

ACQUIRING A SECOND HOME
■ Sixteen percent of vacation-home owners and 13 percent of investment property buyers who purchased their property since 2003 first learned it was for sale on the Internet.

BUYING AND SELLING A SECOND HOME
■ Thirty-five percent of investment property owners plan to buy one or more investment properties in the next two years.

ARTICLE COURTESY OF THE NATIOANL ASSOCIATION OF REALTORS.

One Response to “What factors drive 2nd Home Ownership? Myrtle Beach Real Estate”

1. I Love Island Living says:

   October 13, 2008 at 6:32 pm

   Any type of ocean front vacation home is a great idea when traveling with the family…we just bought a Hawaii vacation home, and it makes it much easier than staying in a hotel.

   Wish we would have done it sooner!