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Vacation Home Sales Are Up

By Nick Viale Published 12/14/2007 | Real Estate

The move to buying a second home overseas is gaining popularity, and many retirees are looking to Mexico, Costa Rica and even further afield for their beachfront properties. Many of these prime retirement areas are experiencing a strengthening realty market, thanks to(our) foreign investment.

However, if you are thinking it is too late for a bargain in a prime retirement area, you could be  wrong! Some areas are still booming, and  even though we have been reading of a downturn in realty, some  areas are holding steady. The question is why?

Everyone wants to invest  in solid realty, but what is the secret? How to choose a viable asset? Is there a secret to being a successful in real estate investing? It is always a gamble, investing money will always have some risk, but you can investigate the odds!

For instance, when buying real estate try to project what the future market will be and  buy the type of home that will be in demand for a few years to come. This is where you have to take into account not only the economic climate but also the demographics of  our society.

For most realty investors, the demographics are obvious in at least one area. The largest population  of retirees will be approaching retirement age in a few short years. For people investing in real estate, or wanting to buy a home that keeps its value, this could be an indicator of what to buy. At least one type of home  that will be in demand will obviously be the 'retirement choice' type of home and in a retirement choice environment..

Condos are very popular. This means that a condo may be a good investment for now, as many of the 'baby boomers' will  be thinking of buying one in about five years time, when they reach 65 - and retire. (Baby boomers were all born in the first year or two  after World War II). They  account for a very large part of the population.  One theory is  that they will be the last generation to have a generous pension, and can  therefore afford to splash out on a retirement home. Beach front towns and resorts are already experiencing an increase in sales.

Since retirement equals house move there should be a large inventory of homes for sale in 2011; this is when the baby boomers reach 65. Many people pursue their life dream upon retirement, and perhaps go and live in a warm sunny climate, by the beach, or in the mountains.  Either way, it involves buying and selling a home.

Prime retirement areas (including areas in USA) are experiencing above average sales. Buying a retirement home before   retirement is the ideal situation. You can always rent it out, or just take your vacation there; it is easier to finance it before  the salary must be given up and the pension  kicks in. If you are a baby boomer it is good sense to get in now before the real  rush happens in 2011.

You can still buy a home and expect  it to be a sound investment  in many of these choice retirement and vacation areas.

Written on behalf of Nicholas Viale. Nicholas has over twenty years experience as a professional real estate agent. He has lived and worked in the Costa Rica real estate market for over ten of those years. If you're looking for properties in Bahia de los Piratas, visit Nicholas at www.CostaRica1RealEstate.com