Do You Fit The Picture…of a Second Home Buyer ?
April 13th, 2008 categories: Real Estate News
According to the National Association of Realtors, the second home buyer falls into two categories - purchasers of investment properties and purchasers of vacation homes.
Second Home Buyer Characteristics
Vacation Home Buyer
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average age is 59 yrs old
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income of more than $71,000
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more than 85% do not rent out their homes
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1/3 of the buyers wanted to be close to their job and approximately 1/4 wanted to be near their primary residence - less than 220 miles
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88% travel by automobile
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a majority have no children under 18 living at home
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these buyers tend to spend more than investment buyers
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consider purchase as a good investment
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desire a place to get away to
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nearly half of vacation homes are in resort/recreation areas
Investment Property Buyer
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median distance from primary residence is 18 miles
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usually invest less per property than a vacation home buyer
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2/3 of the buyers purchased for rental income
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50% purchased to diversify their investments
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50% are detached single homes
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median income of investment buyer is less than vacation home buyer
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median age of investment buyer is 55
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over 25% of properties are located in urban areas
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typically younger and more affluent than vacation home buyers
Both types of buyers consider their purchases as a good investment and almost half of both categories used their savings for a down-payment.
Good news for Real Estate Agents…More than 90 percent of second-home buyers felt it was important to use a real estate professional, and most would use the same agent again.
Real Estate information brought to you by Mary St. George
