When people became “empty nesters” - the children are finished with college - it may be time to buy a vacation home. If you enjoyed your vacations to New Hampshire’s White Mountains, you may eventually want to retire there as well. You may find that your vacation home near the ski slops become a magnet in attracting children and grandchildren.

Baby boomers with discretionary dollars to spend, have fueled an increase in the number of vacation-home sales in recent years. In fact, the National Association of Realtors reported that a record 1 million vacation homes were sold in 2006, a 4.5% increase since 2005. While the majority of buyers, (80%) said that they bought the home to use for vacation or as a family retreat, 35% said a reason for buying was to diversify their investments, according to the Realtors’ survey. Twenty-eight percent said they planned on using the home as a primary residence in the future, and 25% said the tax benefits were a reason to buy. And 20% of buyers planned on renting out their homes.

Before cementing a decision to join the growing ranks of vacation-home owners, consider the following:
1. Is it really practical? - It’s easy to become enamored with a place while on vacation, leaping to the conclusion that owning a home in the locale would allow the entire family to more frequently enjoy this little slice of paradise. Some people figure that they’re spending a good chunk of money on vacations every year anyway so why not invest in a vacation home? The place could be rented out to recoup some of the costs - the owner must take on the role of a landlord.

2. Will it be affordable? - Some people may find it difficult to justify spending $250,000 on a property that you can use only four times a year. That’s why it’s critical for people to estimate how much they will be able to use a vacation home.

Figure in all of the expenses associated with the vacation home then add 10% as a buffer for when the unexpected happens. If you’ll have to count pennies to make mortgage payments, maybe a second home isn’t the best idea for you.

3. Consider future plans. - However, if a home buyer is considering a vacation home as an eventual retirement home, buying in advance to try out the new location is smart. If it’s a legacy the home buyer wants to create, driven by the thought that future generations will want to use it for years to come, buying also isn’t a bad idea. After all, even if the home is sold, children and grandchildren may be able to benefit from the asset.

4. Choose a location. - Before starting the actual home search, decide what the home will be used for. For example: Will it be a skiing getaway during the winter months, a Lake retreat durring the summer months or both? Also consider whether nearby recreational activities are important (i.e., Golfing, Waterslides, Skiing, etc.) or if it’s just a place for peace and solitude in the Mountains.

People spend more time at their vacation homes today than years ago. The difference is they’re not just spending it weeks at a time, instead leaving the office early on Friday and driving to the vacation home for a weekend away.

5. Do the research. - After deciding on the general location, start a home search online at www.AlpineLakes.com Our Realtors can also be of particular help in finding a vacation property because of the local knowledge on vacation home in the Grafton County areas. Our agents specializes in buying/selling second homes. Alpine Lakes Real Estate is known as a “Resort & Second Home Property Specialist.”