According to a NAR survey, typical buyer of a vacation home in 2006 was 44 years old, with a median household income of $102,200. When it comes to deciding how far a getaway would be, 42 percent purchased vacation homes closer than 100 miles from their primary residence, 32 percent were 500 miles or further. Sales of vacation homes are predicted to remain strong, as significant numbers of potential buyers reach prime buying age for these properties.

The 2006 National Association of Realtors Profile of Second-Home Owners survey asked current owners what they desired most in a vacation home. Not surprisingly, a connection to nature and the pursuit of an active lifestyle were typical responses; 66 percent wish to be near water, nearly 40 percent with access to recreational activities, 38 percent in proximity to vacation or resort areas and over 30 percent near mountains and other natural attractions.

When giving their reasons for the purchase of a vacation home, a large majority (nearly 80 percent) planned to use the home for vacation or as a family retreat, followed by the desire to diversify their investment portfolio; for use as their primary residence in the future; for the tax benefits; use by a family member, friend or relative; simply because they had extra funds available. Renting to others trailed the respondents list of reasons, at 18 percent.

When describing the location of their vacation home, 29 percent were situated in rural areas, 24 percent in resorts, 22 percent in a suburb and 10 percent in a city or urban area. Detached single-family homes accounted for 67 percent of the total, 21 percent condos, 8 percent town homes, and 4 percent other.

Buyers of vacation homes tend to be in it for the long term, planning to keep their homes a median 10 years; the largest number of owners responding to the survey, 38 percent, expect to own their vacation home for 11 years or more.

How does your mental picture of the perfect vacation home fit these survey results?

Investment Home Buyers Paint a Different Picture

According to the NAR survey, buyers of homes purchased solely for investment last year were somewhat younger and less affluent than vacation home buyers, with a median age of 39 and a median household income of $90,250. As you might expect, their investment property was close to their primary residence, a median distance of 22 miles.

The reported reasons for purchasing a home for investment purposes differed somewhat as well; 46 percent sought rental income; 43 percent wished to diversify their investment portfolio; 23 percent primarily for the tax benefits; followed by use for vacations or a family retreat; as a place to put extra cash to work, for use by a family member, friend or relative. Eventually using the property as a primary residence trailed the list, at 12 percent.

According to the survey, buyers of homes for investment purposes plan to keep them for a median period of five years; 33 percent plan to hold them for six years or more, and 12 percent plan to sell within a year of purchase.