Several factors are expected to keep sales strong for the foreseeable future, notes the NAR. America's 78 million baby boomers, now in their peak earning years, have both the desire and the financial wherewithal to buy vacation homes and second homes. Interest rates are still historically at low levels and changes in the tax code in the late 1990's have also played a role. Today, married sellers can pocket as much as $500,000 tax-free profit from the sale of their primary residence, letting them downsize to less costly homes while using the proceeds for a second home or vacation property. That is just one of several tax factors that have caused many to look at real estate in the form of second homes and vacation homes for purchase. We advise that you contact your tax accountant for further information on the possible tax benefits of second and vacation home ownership that may apply to you.

These four steps will help you get started.

Define Your Ideal Property

Before you start scanning real estate listings, ask yourself what you really want out of your property. While some people yearn for an ocean view, others prefer the bright lights and cultural amenities of a city. Are you looking for land to purchase today with the idea of building your dream house on it in years to come? Or, are you ready to move right now?

Consider the size of your dream home, too. Will it be a cozy cottage in Western North Carolina, a seaside condo on the Atlantic Ocean, or a sprawling retreat where your family gathers for holidays and vacations?

Also, be realistic about how often you expect to use it. If you have kids involved in sports or other weekend activities, it might be difficult to slip away as often as you'd like. If you are planning more for your retirement, this may not be as much of a concern.

Think about upkeep also. City dwellers might relish landscaping and gardening at their vacation home in the country, while suburbanites might prefer a condo where the upkeep is minimum including someone else mowing the lawn. Click on the The Schaffer Realty Group Property Buying Guide for a great tool to help guide you through the process of defining your ideal property. This guide will help you define your intended use, "life factors" that can contribute to your choice, geographical and climate preferences. This guide will also identify the type of community, property and home style that best meets your needs.

Take a Scouting Trip

Upon completing "The Schaffer Realty Group Property Buying Guide", SRG will review your information and in turn provide you with a list of developments that best meet your needs. From that list, our firm will help you narrow down your search of properties. This narrowing down process is how the Schaffer Realty Group offers real value to our clients. Since we continuously visit every community we work with, we know each community firsthand to help you identify which ones should be placed on your 'short list'. From there, we work with our colleagues to arrange a visit of each community on your short list. We assist our clients in arranging trips that encompass as many of the short listed properties as possible during a single trip. We also assist our clients to better understand the community outside the development such as restaurants, churches, medical facilities, university opportunities and more. We not only want our clients to have a good understanding of the development but the overall community as well.

Click on "Featured Developments" for a complete list of the developments we work with. Here you can also easily request information be sent directly to you.

Calculate the Costs

Some people act impulsively and don't take a hard look at what a second or vacation home is going to cost them. If you are primarily interested in a retirement home and you are ready to move now, it is a bit easier to plan for the expenses associated with your purchase. Second homes and vacation homes have many of the same expenses that your primary home has; monthly mortgage payments, property taxes, home insurance, utilities and routine maintenance. In some areas, insurance may be significantly higher If you plan to buy a single family home, expect to spend 1% to 2% of your purchase price every year on maintenance and improvements. If your costs run less, set aside the remaining funds for future large scale projects.

Condo owners can expect to spend less, about .05% to 1% of their purchase price each year for replacing old appliances or furnishings especially if you rent out the property. Condo association fees cover maintenance costs for the entire development.

A second or vacation home will also incur costs that you don't accrue with your primary residence. Travel expenses to get there, whether it is airline tickets or fuel costs to drive. You may also have to hire a service to watch the house when you are not there or pay a property manager a fee to rent it out. All of these factors need to be included for a precise figure on what this property is going to cost so can you continue to live the lifestyle you are comfortable with.

Review Financing Options

Depending on the end use of the property, many financing considerations need to be reviewed. The range of financing options is as diverse as today's buyer. Click on the tab titled "Financing" for more details or click on the tab titled "Partners" and talk with one of our preferred mortgage advisors.