The Second Home Muse

Weekend Vacation Homes

The New York Times on-line had a great article today about the increase of second homes in close proximity to major cities, and first homes. Quoting the NAR report, it said that second-home purchases less than 100 miles from a primary home have risen to 47% of all second-home purchases in 2005. Wow. Almost half!   They mention that more than a third are only 25 miles away.

That may seem awfully close, until you think of some of the great cities, and what is really only 25 miles away. Here are some of the spots that the article mentions:
Whidbey Island - 58 minutes from Seattle
Marblehead - 16 miles from Boston
Napa Valley - an hour from San Francisco

And on and on.. You get the picture. It makes great sense, especially when you look at the price of gas these days. Kind of extends the idea of shopping locally.  Perhaps you want to check out places nearby before the prices get too steep.

Choosing the Retirement Spot

My eye caught an entry on the web recently about an ocean front condo for under $200K in Naples, Florida. It sounds perfect for a retirement spot for a friend of mine, who keeps complaining she can't afford to buy anything in Northern California. While it's true No. Cal is pricey, I wonder how we add up the intangibles in a place. For example, she has access to the kinds of stores she likes, the activities she likes and the people she knows and likes. Moving to Florida may be a move to a different 'culture' altogether. Yet, it would be much more affordable. Do we have to give up our preferences in favor of the finances? What do you, my good readers, think? How do you make that retirement decision? Finances only? And if not, how to handle the financial aspect? Let's hear from some of you.

Second Home Taxes in Florida

Tax season has come and gone, but not necessarily for Florida home owners. I was attracted to a letter from a reader in a Palm Beach, Florida paper, which mentioned the taxes on his second home, where he spends 5 months a year. Four years ago he built a 1,050-square-foot home. The initial tax was $3,200. In just two years, it has increased to $5,100.

One interesting tax quirk in Florida is that the state passed a "Save our homes" tax cap many years ago, which limits the increase in assessment. However, it specifically excludes second homes, as you must be a full-time permanent resident on the property to qualify. As the letter to the newspaper points out, there's a lot of short sighted thinking in a place like Florida, where second home owners bring a great deal of income. The Lee County appraiser is quoted as saying   "If you can afford a vacation home in Florida, you should be able to pay the taxes." As the writer points out, not only is that incorrect, it can drive people to take their spending money elsewhere. In short, Florida second home buyers.. be alert. Taxes may tax your patience too.

Building a Second Home?

From time to time, I envision a blank slate, starting from a perfect peice of land, and building the second home of my dreams that I would finally retire to. This morning I finally saw one building site that turned my dream into an all-out fantasy. Oh, would I love a house like that, I thought.

It may not be for everyone, but I personally love the clean lines of the Japanese architecture. You see it in temples and tea houses. But it's not always so comfortable for westerners. However, an architect and builder named Len Brackett, studied the Japanese aesthetic and now creates homes that have the best of both worlds. He creates homes with authentic Japanese craftsmanship, and the western touches that make it a bit more livable. His recent book Building the Japanese Home Today shows how he modifies the classical architecture of Japan to meet the architectural expectations of westerners who need furniture, warmth and building permits!

As his website East Wind Inc. says, it's not for the 'financially faint of heart.' But if it's your dream, and you have the land and the bucks, check it out. And then, can you invite me to housesit?

Colorado Second Homes

A symposium in Vail, Colorado, on the social and economic effects of second homes was held in July 2004. It's one of those events I wished I had attended. The roster alone shows the vast scope of interest.

One presentation was a report on the effect of second homes in the most rapidly growing area in north central Colorado. The study  looks at these interesting factors: "second home economy as an economic driver, the economic implications of the construction phase of second home development, to what extent second home owners and local residents share common recreational interests and similar lifestyle values, understanding the long-term implications of second homes on generating the need for services for workers and their families, and the implications of the conversion of second homes to permanent residences on the level and type of local services.  Finally, it considers  the impacts of extreme wealth on a resort destination."

Wow. Terrific late night reading. Here's just one neat finding: both local residents and second home owners have similar value regarding amenities and recreation. In otherwords, they are not just investors. So the ability to make the place work is much higher. For more info on the report and other symposium presentations, look here. And if you need no further convincing, look for your Colorado second home here.

Coast of Spain Revisited

Just a few days earlier, I mentioned that the coast of Spain seemed like a great place for a second home. While I won't retract the beauty of the place, an article in the UK Times on-line has given me second thoughts on recommending it. Seems that the urban planner in one town, Marbella, along with the mayor and 23 others have been arrested for housing fraud. This includes allowing over 30,000 illegal coastal properties to be built, some of which might have to be demolished. The Brits are pretty upset, and it seems that this type of corruption has affected a number of towns in the coastal area.Billions of UK pounds are at stake.

It's an interesting case study on the effect that high demand for limited property can have in areas that have not seen that kind of money floating in. Greed takes over, and the buyer is the one to suffer, along with the  culture, the environment and just about everyone. As for a second home in coastal Spain, be alert.

Happy Holidays

Once again, it's time to wish everyone a happy holiday. Whether you are celebrating Passover, Easter, or the Buddha's birthday, may you experience the renewal of spirit that the season offers.

HGTV Dream House

I've often wondered about the HGTV Dream House program-- whether the stories were true and what happened. Now I know, thanks to my good friend and realtor Chris Cain, from Orlando. He shared with me one recent example:

In 2004, Kathi Nakao of Sacramento, CA, won the 2004 HGTV Dream Home in Cumberland Harbour, GA. Cumberland Harbour is a 1200 acre, gated, second home community on the Georgia side of the St. Mary’s River (the border between Georgia and Florida).  The community is about a 30 minute drive from Jacksonville International Airport, on a peninsula behind the Intercoastal Waterway and the Cumberland Island National Seashore. It has all the usual great amenities you would expect for a dream location. So far, so good. Here's the punch line:

After assessing taxes and estimating maintenance costs, and like six of the other nine “Dream Home” winners, she decided to sell the property.  Mrs. Nakao sold it to Land Resource Companies, the developer of Cumberland Harbour. Now that very same dream home is up for sale. Seems like what goes around comes around.

Of course, if it's your dream, check in with Chris...he'll be happy to sell it to you, in my opinion, much easier than having to work a TV show gig in order to make it yours!

Second Home Hot Spots

One of the interesting parts of the recent NAR report on second home buying was the table identifying the hot spots for second homes in the US. The information, based on financing institutions, presents some good comparisions, both in the most popular destinations as well as those with greatest growth.

Most popular destination for second homes, holding a sizable lead, is Hawaii, with 5-year average of 27% of the second home market. Not far behind is Florida (19%) followed by Arizona (18%) and Nevada (17%). Notable features for all of these is the wonderful climate, though Arizona and Nevada lack the water access of the two leaders. However, when you look at it in terms of growth, the picture changes. Arizona and Nevada lead the pack for growth in second homes, with Hawaii at the bottom. Makes sense, as a lot of Hawaii is already maxed out.

What's it all mean to a second home buyer? Well, I'm going to go out on a limb, and say that for me, I would opt for the locations that are showing less growth, rather than those at tbe top of the heap. Mostly for pricing, meaning I think you get a better deal in the slower growth places, and that you have more bargaining power. But also because I would always rather have my vacations in the place where others are not! I have enough traffic and growth near my first home. Why head for more? What's your thought?

Little Known Vacation Spot

My friend Janet, recently back from a family vacation in the south of Spain, was telling me about the profusion of second homes she ran across. Seems that the majority of people in Northern Europe know something many of the US vacation buyers don't: Southern Spain can't be beat for buying a vacation home.

Janet mentioned Andalusia, the southern region with 8 distinct provinces. You can find gorgeous Moorish-influenced architecture or get a place right on the Mediterranean if you are into coastal living.  Costa Del Sol is the leading choice for the British vacation home owners. A survey from 2005 showed that over  66% of British people buying a second home abroad choose Spain, partly for great weather, partly for culture. It also seems worthy for investors as well. Last year values increased by 17%.

If you are in the market for an interesting and different location for your second home, the south of Spain is definitely worth checking out. For what to consider before buying property overseas, read this informative article.