SECOND HOMES
Many Happy Returns
By Rob Neyland
C
harles, a computer executive from Min- by themselves or their family; an investment looking for the REAL in real estate; some-
neapolis and his wife Linda had skied property that will increase in value; a future thing they can own, that they can use, enjoy
in Breckenridge for ten years before place that they can retire into down the road. and have some control over and that will
they bought their townhome. Austen and Certainly there is overlap between these goals increase in value.
Lesley fell in love with the town the first time and they combine to create a booming market According to the annual Survey of Wealth
they visited Breckenridge and bought a vaca- for second homes in the U.S. and Affluence in America, conducted by
tion home, seeking to eventually retire in the “Because the typical second home buyer American Express and the Harrison Group,
Victorian mountain town. Stacy vacationed in is a baby boomer, it is likely over the next 40 percent of the nation’s affluent plan
Breckenridge as a child and has now returned decade that second home sales will remain to buy real estate in 2008. They view real
as a mother of three with her husband Mark, historically high,” wrote David Lereath, Chief estate as a solid diversification from their
seeking a mountain vacation home to share Economist for the National Association of other investments and 89 percent of these
similar moments with the grandchildren that Realtors in an article posted on escape- affluent believe that real estate values will
will someday come. All have a common homes.com. “The boomers are still in their rebound strongly.
thread; they were captivated by Breckenridge peak earning years and have the wherewithal In fact, resort real estate in Summit County
and became second homeowners. Why are all and the desire to purchase vacation homes has maintained an average 12.1 percent
these people buying second homes and why and investment properties.” annual appreciation rate since 1993 and
are they buying them in Breckenridge? The number one reason for owning a in some cases doubled that, according to
Every property owner in Breckenridge second home, according to the editors of sales figures from the Summit County Mul-
started out as a visitor to the area. They escapehomes.com, is for the sheer enjoy- tiple Listing Service. Breckenridge continues
discovered a place “away from it all” that ment it brings to buyers and their families. to dominate the sales picture with 45.9 per-
they could call home and they became A second home can provide a special place cent of the total dollar Summit County sales.
determined to return again and again. Ask a where you can reconnect: With family, with Although the overall number of units sold
local and the most common refrain you will nature and with yourself. As the huge baby was down in 2007, the average sale price for
hear is, “We came for the skiing, but we fell boomer generation approaches retirement, all housing was up by a robust 14.7 percent
in love with the summer.” No heat, no bugs these quality of life issues are becoming more and length of time on the market decreased
and no humidity (and your golf ball travels 20 important. The desire for family gatherings by 34 percent over the prior year—both
percent farther). and traditions is a driving force. clearly bucking national trends.
Whenever people vacation in the moun- Land Title Guarantee Company’s prop-
tains, they pick up literature on the homes The Real in Real Estate erty index indicates that in 1988, the aver-
for sale in the area. They want to know how Clearly, this increasing demand will make age price of new or resale housing in Sum-
they can live here. A home, a condo, a frac- resort real estate worth more tomorrow than mit County was a little more than $99,000.
tional ownership? Are there some really good it is today. As the stock market continues its In 2007, the average price for a single fam-
deals? Is the market slowing down? What are volatile and unforgiving mood swings, more ily home was $798,295.
the hot spots? Is now a good time to buy? investors, young and old alike, are looking to
move assets into resort real estate. Uncle Sam
Enjoyment Stocks are fickle. People are tired of see- While we’re talking about family mem-
There are a lot of reasons for buying a sec- ing their retirement funds getting trashed bers, don’t forget Uncle Sam. There are
ond home. But typically people are looking for and losing a third of their value over a short significant tax advantages in second home
one of three things: A vacation home for use period of time. In a nutshell, people are continued on page 38
36 BRECKENRIDGE | gobreck.com | 877-234-3989
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