REAL ESTATE
by Jim Coleman, REALTOR®
RESORT AND SECOND HOME BUYERS ARE BIG PART OF MARKET
The local market is being impacted by a significant segment of today's real estate buyers. The current Parade of Homes is a reflection of what much of this buying group is demanding, both locally and nation-wide. This consumer is driving much of the builder anticipation as they (the builders) try to meet the consumer expectations.
This area boasts of strong primary home interest as well as the second home owner with all the factors attracting buyers and investors to Southern Utah.
Our market makeup is strong with the various factors for which the Second Home Buyer is looking. Whether for investment purposes or as the pure second home retreat, the beautiful St. George and Southern Utah areas are definitely on the map. Vacation and resort destinations provide a big draw for the Resort or Second Home Buyer. Leisure time, scenic attractions, active lifestyle and family get-away resorts play a huge role in driving this market.
The characteristics of Second Home Owners are interesting. The comparison between Vacation Homes and Investment Property Owners making up the Second Home Owner market is noteworthy. The median age is 59 for Vacation Home Owners and 55 for Investment Property Owners. When comparing the distance from the owner's primary residence, Vacation Home Owners are within 220 miles, while Investment Property Owners are within 10 miles of the primary residence. Properties located in the suburbs show 11% for Vacation Home Owners and 35 % for Investment Property Owners. This data is from the 2006 NAR Profile of Second Home Owners. While this data reflects actual factual findings from research and surveys, it is my personal observation and opinion that this area, due to its location, has a goodly number of owners of the Resort and Second Home group who reside a greater distance from St George than is indicated with the data above.
There are some very critical guidelines for investors who play into the Second Home Market. Many folks think of their second home get-away property as the investment. Strict tax guidelines set forth the allowances for time and personal use of an investment property. If the property is used more than 14 days per year for personal use, the owner must sustain different tax treatment than if 14 or fewer days. The handling of rents of second homes is a matter the owner should counsel about carefully with their tax advisor. Mortgage loans and the appropriate disclosure of intent, especially in this day of so much infamous fraud, should be a matter of consistence and integrity. Matters such as reporting expenses for repairs and maintenance have different application under the tax code for second home properties versus those for investment purposes.
When all the talk is over and the dust is settled, there is little doubt this area is ripe and in full fruit with opportunities for the Resort and Second Home buyer as well as the primary home purchaser. The beauty and the weather can't be beat.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East This area boasts of strong primary home interest as well as the second home owner with all the factors attracting buyers and investors to Southern Utah.St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.