This page contains a Flash digital edition of a book.
MAY 2012 |www.opp.org.uk


BUSINESS


And of buyers who fi nanced their purchase with a mortgage, large down payments were typical. The median down payment for both investment- and vacation-home buyers in 2011 was 27 percent. The median investment-home price was US$100,000 in 2011, up


investment purchases. Vacation homes purchased last year


were more likely to be in suburban or rural areas; investment homes were concentrated in suburban locations. Eighty-two percent of vacation-


home buyers said the primary reason for buying was to use the property


“NAR’s analysis of US Census Bureau data shows there are 8.0 million vacation homes and 42.8 million investment units in the US, compared with 75.3 million owner-occupied homes.”


6.4 percent from US$94,000 in 2010, while the median vacation-home price was US$121,300, down 19.1 percent from $150,000 in 2010.


Lifestyle factors have consistently been the primary motivation for vacation-home buyers, while the desire for rental income drives


themselves for vacations, or as a family retreat. And thirty percent plan to use the


property as a primary residence in the future, and only 22 percent plan to rent to others. Half of investment buyers said they purchased primarily to generate rental income, and 34 percent


Where Vacation Home Buyers Purchased (by U.S. region)


Data | Make the numbers work in your favour and match your off ering to demand


wanted to diversify their investments or saw a good investment opportunity. Sixteen percent of vacation buyers


and 14 percent of investment buyers purchased the property for a family


member, friend or relative to use. In many cases the home is intended for a son or daughter to use while attending school, college or university.


The Bottom Line


NAR USA OUTLOOK | 39


Source: National Association of Realtors


Where Investment Home Buyers Purchased (by U.S. region)


Source: National Association of Realtors


U.S. properties have been “on sale” in comparison to similar foreign proper- ties, especially during the recent recession, and foreign buyers have taken advantage of the low prices. In previous columns we have encouraged buyers to “act now before it’s too late,” knowing that the end of the recession (or at least the worst of the recession) was near. Now, U.S. buyers are jumping on board and purchasing second homes at a bargain price. So what does this mean? The discount prices are not likely to last much longer. As the United States continues to add more jobs to the economy, and consumer confi- dence grows, more U.S. buyers will come into the game. This will drive up the cost of housing (though it is unlikely to hit “bubble” levels again). If your clients are interested in purchasing a second-home in the U.S., the time to get the best price is now. And finally, just to be clear, we here at NAR define a vacation home as a recreational property purchased primarily for the buyer’s (or their family’s) personal use, while investment homes are residential property purchased primarily to rent to others, or to hold for other financial or investment purposes.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68