Your Vacation Home: Find a Smart Buy
by
Jennifer Openshaw, AOL Family Financial Editor
I love real estate investing. And when it comes to real estate, why not make it a twofer -- a vacation home and an investment? Vacation homes in the right places offer financial and lifestyle rewards -- that's a double return on your money.
But unless money is no object, you have to buy smart to realize the lifestyle benefits you seek in a vacation property, while not taking on too much financial risk.
So where can you buy smart?
First, a few ground rules: I do not recommend the "cliché cachet" places. These are vacation places made trendy by the rich and as a result, have already appreciated -- locales such as Vail, Aspen, Colo., Sun Valley, Idaho, Carmel, Lake Tahoe, Calif., and the Hamptons in New York.
Other areas to avoid are "middle of nowhere" locations. Sure, Bozeman, Mont. or Buena Vista, Colo., offer great vacation surroundings, but these areas can take days to reach. Hurricane-prone areas, which cost a lot to insure against natural disasters, are also omitted from this list.
What Makes a Smart Vacation Home Buy?
So here are my criteria to identify a smart vacation property:
1. Affordable: homes for less than $350K
2. Convenient: less than three hours from a major city
3. Active vacation rental market
4. Plenty to do.
5. Room to grow: an unsaturated market, situated near upscale destinations
Asheville, North Carolina
Long popular among Easterners for its Biltmore estate, this modern and happening midsize city is located in the Blue Ridge Mountains near the Great Smoky Mountains National Park gateway. Asheville has a pleasant climate and plenty to do in an attractive, mostly wooded setting. There's a wide range of properties and locations -- from log cabins and condos to planned communities and ski resort properties -- within a 30-mile radius. Asheville is farther from main urban areas than some vacation spots, but has good air and road access.
Brunswick, Georgia
The town of Brunswick itself has plenty of historic interest, but the so-called "Golden Isles," the barrier island areas of St. Simons Island and Jekyll Island, are rapidly coming into their own as destinations. Some parts are quite upscale with multimillion dollar homes and fancy shopping districts. Brunswick is about 80 miles north of Jacksonville, Fla. and lies in a zone relatively immune from hurricanes (so far).
Depoe Bay-Lincoln City, Oregon
Southwest of Portland, this area features lush, rugged coastal scenery and a series of classic, mostly unspoiled coastal towns along U.S. 101. The area is dotted with state parks and beaches. There's plenty of housing along the coast, and it attracts an educated population from other West Coast cities.
Freeport, Maine
Made famous by L.L. Bean,
this cute town just off the shore and just north of Portland --
and Boston -- has a lot to offer besides shopping. Nearby areas include Yarmouth and
the more well- known Kennebunkport. You can get there cheaply by flying Southwest to Manchester, N.H. (Freeport is a two-hour drive from Manchester.) Seafood, anyone?
Fairhope, Alabama
This artsy and somewhat eclectic town sits just east of Mobile Bay, adjacent to Alabama Gulf Shore beach areas. Referred to locally as name "Carmel-by-the-Bay," Fairhope's waterfront and town features are reminiscent of its more famous Central California namesake.
Galveston Island, Texas
For years a resort area and seaport, this long barrier island just south of Houston is on the upswing with new developments for all price ranges. Known as the "Lone Star equivalent of the Hamptons," the area attracts vacation home buyers from Houston as well as the East Coast. The antebellum downtown area is interesting and fun and there are miles of beaches.
Granby, Colorado
About 90 miles northwest of Denver, Granby sits at a major crossroads and gateway to a vast mountain area, including the ski and mountain resort Winter Park and Rocky Mountain National Park, located within 20 miles. Granby itself is an old railroad town featuring new residential and resort areas and two new golf course communities. Its median home price is $275K -- $200K below nearby Winter Park.
Heber City, Utah
Utah's "Four-Season Playground" is a more moderate alternative to the tony Park City 20 miles away. Heber City is located in a pleasant valley between the Wasatch and Uinta Mountains, 50 miles southeast of Salt Lake City and near the site of the 2006 Winter Olympics and Robert Redford's Sundance development. It's starting to be "found" and prices are rising, but it's still more reasonable than nearby areas.
Lake Geneva, Wisconsin
Seventy-five miles northwest of Chicago, this area is known as "The Hamptons of the Midwest" (notice a recurring theme?), attracting affluent city goers from Chicago and Milwaukee. The large and attractive Lake Geneva reminded the area's founders of the eponymous upstate New York town, situated on Lake Seneca. Vacation home choices lie near the town of Lake Geneva or in smaller enclaves surrounding the lake. Proximity to Chicago, Madison and Milwaukee brings a steady stream of visitors
Saugatuck, Michigan
Numerous art galleries, a pleasant small town and miles of sandy beaches and dunes along Lake Michigan bring the nickname "Art Coast of Michigan." It's about 140 miles northeast of Chicago and close to the Dutch-settled agricultural region near Holland and Grand Rapids. You'll find plenty to do and attractive cottages starting at under $200,000.
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