3 May 2008 - If you're dreaming of buying a vacation home, this just may be the time. Buyers across the country are continuing to choose second-home ownership not only because it can provide a great getaway, but because it can also serve as a long-term investment and tax shelter. In fact, second-home sales accounted for one third of all transactions in 2007, according to a recent survey from the National Association of Realtors.

To begin the process of finding just the right vacation home, start by looking in an area where you've vacationed before. Or if you are considering a new geographic region, rent a home for a season to make sure it suits you. Also think about what sort of vacation home you want - perhaps a cabin, a house or a condo. Condos come with homeowners' associations, which have certain rules and fees, but also offer many benefits that are often attractive for owners who are not always on the premises.

Once you have a general idea of the area and type of vacation home you want, contact a Realtor - a licensed professional who is a member of the Utah Association of Realtors. You may want to interview several Realtors before choosing one best suited to your needs. Ask how many vacation home listings they have, how many years they've worked in the business and about any particular specialties.

A Realtor can help you determine how much you can afford and will coach you through the personal and financial data you will need to apply for a loan. Additionally, a Realtor will be familiar with current real estate values, taxes, utility costs, municipal services and facilities, and zoning laws that may affect your property.

Also ask your Realtor about renting your vacation home to others - he or she can advise you on potential restrictions, advantages and disadvantages, and tips for making your vacation home a premium investment as well as a fun getaway.

According to NAR's 2007 Investment and Vacation Home Buyers Survey, second homes make up approximately 30 percent of the total home-sales market. About 12 percent of houses sold are vacation homes; about 21 percent are purchased principally as investment properties. The median price of a vacation home was $195,000 in 2007, and the typical investment property cost $150,000 last year, unchanged from 2006.

Fifty-nine percent of vacation homes purchased in 2007 were detached single-family homes, 29 percent condos, 7 percent townhouses or rowhouses, and 5 percent other.
The typical vacation-home buyer in 2007 was 46 years old, earned a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence.

In listing the reasons for purchasing a vacation home, 84 percent of buyers wanted to use the home for vacation or as a family retreat; 30 percent planned to make it a primary residence in the future; 26 percent wanted to diversify investments; 25 percent planned to rent to others; 16 percent bought for the tax benefits; 14 percent purchased the home for a family member, friend or relative to use; and 6 percent had extra money to spend.

Today's lifestyle factors and demographics favor the vacation-home market. A growing portion of the population is moving through the prime years for buying recreational property, and prices in general are likely to appreciate to reflect this healthy demand. Low interest rates and a greater selection of housing choices are other reasons why a second-home purchase may make sense in today's market.

For more information about purchasing a vacation home, contact a Realtor - because nobody knows Utah real estate like a Utah Realtor.