June 2, 2015
FROM AN INMAN ARTICLE BY HEATHER BAYER – TAKEAWAYS FROM THE NAR VACATION HOME AND INVESTORS REPORT:
- Second home investment is on the rise
- Vacation home sales represent 21% of all real estate transactions in 2014
- The growth in these sales plus the rise in demand for vacation rentals give rise to a highly profitable niche market.
- Interest in investment properties is slowing
- NAR reports the fourth year of decline in residential property purchased primarily for rental income or price appreciation
- The short term rental market is different and the real estate agent is the go-to expert
- Vacation home buyers live an average of 200 miles away
- Property management is often a necessity
- The real estate agent can direct the buyer to competent management companies
- Boomers are buying for later retirement
- 19% of vacation home buyers plan to convert the property into their future primary residence.
- Agents understand the specific needs for retirement and have good knowledge of short term rental demand, occupancy rate and seasonality in their area
- There are more affluent families
- The typical vacation home buyer had a median income of $94,380 and 54% bought a single family home. 33% of buyers plan to use the property for vacations and bought in the South or in beach communities.
- Cape Cod is the perfect market