It's been a busy and exciting couple of weeks in the set up of East Tennessee Luxury Properties which we have spent mostly developing content for our web site, designing our marketing programs and doing market research on the second home market for a local developer looking for advice on the direction of his 600 acre development in the Smoky Mountains.
Today is our first official day of business, and we are thrilled to be serving the luxury market in East Tennessee. You can meet us here. Since our first order of business for a client was to provide research on the second home market, we've shared a synopsis of it here.
As 70-80 million baby boomers retire over the next 15-20 years, vacation and second home sales are expected to remain strong. As they are delaying their exit from the job market, boomers have huge business and investment opportunities available. Because of their higher earning potential in the years before retirement and children likely out of the home, vacation home sales are expected to increase while investment property purchases will be on the decline. This generation is ready to bring their family back together and prefer not to rent out their vacation home for a return on their investment. Recent tax laws allowing up to a $500,000 exclusion from capital gains means they won't be penalized even if they decide to downsize their primary home.
The majority of second home buyers are coming out of the midwest and the south which comprise over 60% of vacation home buyers. Most are looking for waterfront homes or those with a view and desire an abundance of activities nearby. Some top desires for those planning to purchase a second home, condominiums, gated communities and golf communities are among the highest.
Whether you are searching for your perfect dream home or you are a developer creating a community in a second home destination, please contact us with any questions on this exciting market. The sources of our research come from The Institute for Luxury Home Marketing, The Wall Street Journal and the National Association of Realtors.
