Most buyers who are looking to purchase a home are looking for something that they will use as their primary residence. However, there are many buyers who are looking for an additional home for future residence, a family retreat or an additional source of income.
An investor or a vacation home buyer make their decisions much differently than primary residence home buyers. In 2014, 60% of homes bought were for primary residence use, 20% as vacation homes and 19% as investment properties. Below is a list of motivations and expectations of home buyers who are purchasing vacation properties versus investment properties (2015 NAR Investment and Vacation Home Buyers Survey)
Vacation Properties – 33%
Investment Properties – 8%
For future retirement
Vacation Properties – 19%
Investment Properties – 10%
Potential for Price Appreciation
Vacation Properties – 13%
Investment Properties – 15%
Vacation Properties – 11%
Investment Properties – 37%
Low mortgage rates
Vacation Properties – 9%
Investment Properties – 7%
Other
Vacation Properties – 2%
Investment Properties – 6%
Investors are prominent throughout the real estate market. The west, including Colorado, is the second-highest area in which investors are looking to buy property; 26% of investors are looking in the West, 37% in the South, 20% in the Midwest and 17% in the Northeast. Investors are buying primarily for rental income, if they found a good deal on a home, price appreciation and for retirement.
To learn more check out the 2015 National Association of Realtors’ Investment and Vacation Home Buyers Survey.
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