College Educated Baby Boomers More Likely to Own Second Homes According to a study by Harvard University's Joint Center for Housing Studies, college educated baby boomers are more likely to own second homes.
The Harvard report states, "The estimated odds that a college-educated household head would own a vacation home vs.
no vacation home are over four times more than that of a household head with less than a high school education.
" Benefits of a Vacation Home 1.
Easy and Quick Mini Vacations You can get away from your hectic home life and enjoy a retreat without worrying about reservations, packing, and planning.
If you set your vacation home up right, you can go for a break at the drop of a hat.
2.
Income Potential Many vacation home owners have a property manager handle weekend and weekly rentals.
In some resort areas, the income outpaces the mortgage payment.
However, the real profit may be appreciation over time.
The Real Estate Journal reported that a family who purchased a vacation home in Park City, Utah in March 2004 for $495,000 resold the property two years later for $945,000, a gain of $393,300, or about 79.
5%.
Also, you can tap into the appreciation and free up your equity for other investments with refinancing.
3.
Quality of Tenants Generally, the type of person who rents a vacation home doesn't have money problems, respects property, and leaves on time.
Compared to income property tenants who can cause eviction headaches and destroy property, vacation renters are the dream tenant.
4.
Family Traditions Many families spend a summer vacation, Thanksgiving, or Christmas at their vacation home.
The benefits of quality time: priceless.