A loan is not always the best option as it can be quite expensive in the long run, especially if you have bad credit but then as with everything, there are benefits.

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Touch Screens Approved for NYC Taxis
The Taxi and Limousine Commission approved a plan Thursday to install touch-screen monitors in all 13,000 city cabs that will allow riders to pay by credit card, check on news stories, map out where the cab is going and find information about eateries

Second Home Sales Account for 40% of Real Estate Market

Baby Boomers purchasing investment property accounted for four out of every ten sales of existing homes last year-a record that helped drive the real estate market to new highs.

"I have focused my business on baby boomers investment property and home investment property," said Polly McCormick, owner Premier Real Estate Group.

"We have properties available all across the nation in every price range for investment, for retirement, or for a vacation home," adds Polly.

"The Florida Condo Conversion market is red hot, we have one and two bedroom condos that are already rented and generate immediate cash flow," claims Polly.

We also have Miami Pre-construction properties that are increasing in value every six months. The market is so hot, that it's not uncommon for an investor to make a double-digit profit before the property is even completed.

Statistics show that Americans are purchasing second homes as investments or vacation properties. This burgeoning market accounted for four out of every 10 sales of existing homes last year, a record that helped drive the real estate market to new highs, according to a report being released today by the National Association of Realtors.

The NAR reports that nearly 28% of homes bought last year were for investment purposes, and an additional 12% were baby boomers purchasing investment property or vacation homes.

Polly McCormick has experienced this trend first hand. She reports that most of her buyers are baby boomers in their top earning years, looking toward retirement and hoping to build wealth or find a more desirable place to live.

"Baby boomers are such a powerful economic force," said Dave Jenks, co-author of The Millionaire Real Estate Investor. "They're using their wealth to go buy second homes."

Polly says her typical investment buyers are 49 years old with annual income of $81,400.

"Real estate, over the past five years, has outperformed virtually every other investment vehicle," said Ron Peltier, president and chief executive of HomeServices of America, the country's second-largest residential brokerage firm. "A lot of people have just speculated in real estate."

Polly believes the trend really started after 1997, when Congress changed the tax code, allowing most homeowners to duck capital gains taxes when they sold their homes. The exemption is $500,000 for married couples, $250,000 for singles, if it was their primary residence for two of the past five years.

Under the old system, the only way to avoid the tax was to "roll" the gains into another home of equal or greater value. Americans bought bigger and costlier homes. But now, they can downsize and use the equity built up in their homes to buy second homes.

Polly credits the present tax situation and the fact that baby boomers are entering their peak earning years with the increase in second home purchases.

Premier Real Estate Group is betting that the sales of baby boomers investment property and home investment property will stay strong for years because the youngest baby boomers are only 42 years old.
The typical vacation home buyer last year was 52 years old, earning $82,800 a year, and purchased a property that was about 200 miles from the primary residence. The median price was $204,100, up 7.4%.
More than three-fourths of the buyers have no interest in renting their property. About 20% said they purchased the property as their retirement home.

Polly agrees that these home sales are an investment in the future and something they could sell to pay for college. Polly views these home investment properties as something you can also hand down to their kids.

About the Author

Mike McCormick , Owner, of Premier Real Estate Group. Premier Real Estate are Florida Condo Conversion Investing and Miami Preconstruction Investment experts. Permission is granted to re-publish this article providing it is published with links and author's block intact.

Westchester Spotlight

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