Vacation Homes – latest trends

Vacation home - beach houseAccording to the National Association of Realtors’ 2013 Investment and Vacation Home Buyers Survey, here’s how the current trends look.

1.  The median vacation-home price in 2012 was $150,000 compared with $121,300 in 2011.

2.  Nearly half of vacation-home buyers paid cash for their properties in 2012.

3.  The typical vacation-home buyer in 2012 was 47 years old and had a median household income of $92,100.

4.  80% of vacation home buyers said they purchased their property for vacations or as a family retreat.

5.  45% of vacation homes purchased were in the south.

6.  The typical vacation home buyer last year purchased a property a median distance of 435 miles from their primary residence.

Vacation homes are becoming more popular with buyers who are tired of the hotel scene and rising prices, yet want a “home away from home”.  They appreciate getting away from jobs and the monotony of everyday life back at home. Many decide to convert later to an income producting investment by renting out through vacation home websites. Always discuss with your accountant to work with your particular financial goals.  And be cautious that vacation rentals are sometimes required to pay sales tax or a lodging tax just like hotels.  In the long run, vacation homes can make lasting memories and can be passed down through generations.