Renting a vacation home has its perks. You're not wedded to one area for longer than a few weeks. There's no dealing with frozen pipes, property taxes or scraping together that down payment.
But if you're tired of sitting on furniture from the 1970s and looking at peeling paint, buying might be in the cards.
The only question is where.
In Pictures: Best Places To Buy A Vacation Home: Northeast
In Pictures: Best Places To Buy A Vacation Home: West
In Pictures: Best Places To Buy A Vacation Home: Midwest
In Pictures: Best Places To Buy A Vacation Home: South
"The main thing motivating a vacation-home buyer is utility," says David Hehman, president of EscapeHomes.com, a San Francisco-based second-home research site. "They want to maximize their purchase around a recreational activity."
Still, whether that includes sitting surfside or skiing down double black-diamonds, no one wants to buy a property that will decrease in value. The safest bets are luxury homes in blue-chip locales. While a Jackson Hole ski lodge or a Martha's Vineyard beach house probably won't explode in short-term value--unless snow stops falling on the Grand Tetons or the Massachusetts shoreline disappears--both are highly desirable, heavily supply constrained areas which have done nothing but appreciate in the last 20 years.
They're also extremely expensive.
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Another route is to go for the undiscovered gem. ( In Pictures: Undervalued Vacation-Home Spots.) Here, buy-in prices will be significantly lower than the blue chips. Picking a quality unknown is a way for buyers to build memories and still be able to afford to send the kids to college.
How It's Done
In compiling our list, we picked the five fastest-appreciating regional blue chips, as well as 10 hidden gems nationwide, all of which offer many of the same geographic advantages as the blue chips, without the high price tag.
But calculating appreciation rates for second-home spots can be tricky. That's because many of these destinations, like Tahoe City, Calif., or Sun Valley, Idaho, have a very distinct property-value divide between the housing stock for full-time and part-time residents, the latter set owning primarily luxury vacation homes.
The key is to track values on a granular level. To do that, NeighborhoodScout.com, a Rhode Island-based real estate research site, developed an index designed to pinpoint vacation-home spots. The firm looks for neighborhoods with desirable locations, near beaches, lakes or mountains, for example, and with amenities and services that cater to a vacationing crowd, which, according to its research, are typically high-net-worth renters. Property value spikes within a vacation home area are also examined. The data is then cropped to study which locations had the fastest median home price appreciation over the past five years.
Of the Northeast's most expensive summer destinations, the village of Water Mill, N.Y., in Bridgehampton, appreciated fastest. The median home price there is $1.38 million; it increased in value at an average of 21% a year over the last five years. In the Midwest, Victoria, Minn., which is surrounded by many of the state's trademark lakes, grew an average of 18% a year.
The north end of Key Largo, Fla., has appreciated at 27% a year, on average, according to NeighborhoodScout, making it the fastest-growing vacation spot in the South. Moran, Wyo., situated between Grand Teton and Yellowstone National Parks, has seen 35% average increases in annual value since 2002.
What's Driving Prices Up?
Nationwide home sales are down 4.1% from this time last year. And sales of investment properties, which, unlike second homes, are generally urban properties rented for profit, fell 28.9%, according to the National Association of Realtors (NAR) Investment and Vacation Home Survey.
But vacation buyers aren't sweating. Vacation-home sales were up 4.7% last year to a new record of 1.07 million, according to the NAR.
"We expected the drop in investment sales, because speculators left the market in 2006," says David Lereah, NAR's chief economist. "The rise in vacation-home sales is based on strong demographic and lifestyle factors, with only modest interest in renting their properties."
In other words, if the sun is shining on the shore, or the powder's falling on the slopes, vacation-home buyers don't mind short-term market fluctuations very much.
This makes more sense when you consider that the average vacation-home buyer had a median household income of $102,000 last year, according to NAR, far out-pacing the national average of $44,000; and second-home buyers had a median age of 44, down from 52 a year ago, suggesting that the market has shifted hands to a new generation, one that has time to wait out market volatility.
Money matters, however. And long-term return on investment is important. In that regard, the best bets are blue-chip locales like the Hamptons in New York, or Aspen, Colo., where historical market appreciation has been strong but prices can be prohibitively expensive. Other such spots include Nantucket, Mass., and Jackson Hole, Wyo.
But "finding a top quality home that's still affordable can take a lot of effort," says Andrew Schiller, founder of NeighborhoodScout. "Good places to look are quality places near blue-chip vacation destinations."
Take Kamuela, Hawaii, on the north shore of the Big Island. A bit up the road from Hilo, the median house value is $487,188, modest by Hawaiian standards. Or look to Blue Hill, Maine, up the coast from Kennebunkport, where a four-acre equestrian estate runs just under $300,000. If the Southwest is more your style, the Cochiti lakeshore in Pena Blanca, N.M., outside Santa Fe, has pristine views of the Sandia Mountains--and the median price is only $209,000.
But those hidden gems don't stay secret for long.
"In [December 2006] you could get an ocean-view lot in Captain Cook, Hawaii, south of Kona, for $70,000," says Schiller. "When we called in late March on behalf of a client looking to purchase in Captain Cook, the prices had gone from $70,000 to $150,000."
Sunday, August 12, 2007
World's Best First Class
The only accoutrement not offered to today's first-class fliers: harps of gold.
Every other kind luxury is being lavished on them: fine champagne, toiletry kits by Bulgari and Ferragamo, seven-course meals and, on the ground, special concierges to expedite their passage through check-in and security.
"Right now, first-class is all about creating an over-the-top experience for passengers," says Edward Plaisted, chief executive of Skytrax, a London-based airline and airport-quality ranking firm. At a time when some carriers have eliminated first class altogether (in order to focus on business class), 35 others have not only kept it, but kicked it up a gilded notch. The ones keeping it, says Plaisted, are striving for "that wow factor."
In Pictures: World's Best First Class
Singapore Airlines' first class, for example, gives its passengers a choice between Dom Perignon and Krug champagne, and while fliers change into their Givenchy sleep suits and slippers in the extra-large bathrooms, their seats are turned into actual beds with sheets, a down duvet and oversize pillows.
Emirates first-class seats are mini-suites with sliding doors offering passengers total privacy. Cathay Pacific actually has skillets and rice cookers on board for its top-tier fliers, which means that eggs are made to order and rice dishes are prepared fresh.
World's Best Airlines
Best Business Class
Best Low-Cost Carriers
Best Business-Class Lounges
Industry experts say that airlines are hoping amenities like these will entice passengers to spend the hefty first-class fares, which are an average of $6,922 for a one-way ticket on a European airline (an increase of 16% from a year ago), and $7,377 on an Asian carrier, up 12% from a year ago, according to Harrell Associates, an airline consulting firm in New York City that tracks ticket prices. U.S. airlines don't figure into the mix because most have consolidated first and business into one class.
Despite the steep cost for a ticket, first class is more a marketing tool than it is a money-maker.
"It's not a major source of revenue for airlines to have a first class," says Mike Boyd, president of the Boyd Group, an aviation consulting group in Evergreen, Colo. "Nowadays, business class is at such a high standard that most travelers are happy with flying that, and a lot of first class is filled up by upgrades from frequent fliers." Most full-fare first-class fliers are traveling for pleasure, not business.
Out-Of-This-World Options
Of the roughly 35 airlines worldwide who do offer first-class, fully flat beds, a three-to-one passenger-to-crew ratio (in biz-class, it is typically 10 or 15 passengers for one crew member), and sumptuous meals are par for the flight. However, a handful of carriers are trying to distinguish themselves by improving passengers' airport experience.
"Passengers complain that going to the airport is becoming more hellish with longer security lines and more time wasted before the flight," says Plaisted, "so some airlines are focusing on making the ground experience pleasurable for first-class fliers."
Qatar Airways is an example. First-class passengers flying out of Doha have access to a new separate $90 million terminal that resembles a five-star hotel with marble floors and cascading waterfalls. Passengers are cosseted from the moment they arrive at the airport. An attendant takes their bags, checks them in and leads them to a lounge, which has several fine-dining restaurants, a medical center and a spa with a sauna and Jacuzzi.
The luxe factor continues on board when fliers get caviar service, full-size pillows, white linen mattresses, Australian wool blankets and Bulgari toiletry kits. Each seat also has a 23-inch meal table, which lets two people dine across from each other, like in a restaurant.
It's amenities like these that give Qatar the distinction of the best first-class airline in the world on Skytrax's annual survey, which lists the top 10 in this category. The survey was conducted from August 2006 to June 2007 and includes a variety of input sources, including online and e-mail passenger interviews, business-research groups, travel-panel interviews, corporate-travel questionnaires and phone interviews. It takes into account nearly two dozen criteria, such as check-in, lounges, onboard amenities and staff service.
These are the areas in which carriers such as Thai Airways (No. 5 on Skytrax's list) are trying to set themselves apart.
First-class passengers are waited on hand and foot from the moment they arrive in a private section of Bangkok's Suvarnabhumi's Airport. A personal concierge checks them in and escorts them through security to a lounge with wi-fi, a sauna and a spa that offers Thai massages. When flying into Bangkok, a concierge fast-tracks them through immigration, customs and bag pick-up. The perks onboard aren't bad either: passengers receive Bulgari toiletry kits and have a choice of 22 entrées, which can be pre-ordered.
Australian carrier Qantas' first-class lounges in Sydney and Melbourne have a library, a fine-dining restaurant, a business center and a spa that offers massages. Seats onboard transform into beds 6.5 feet long, and entertainment is 400 video on-demand channels. Dining is an eight-course extravaganza, which can be paired with wines, and Payot products are stuffed into the designer silk toiletry kits (the men's by Akira Isogawa, the women's by Colette Dinnigan).
It may not be exactly like staying in a five-star hotel--after all, there are no king-size beds and Jacuzzis on board--but with all its lavish amenities, first-class flying comes pretty close.
Every other kind luxury is being lavished on them: fine champagne, toiletry kits by Bulgari and Ferragamo, seven-course meals and, on the ground, special concierges to expedite their passage through check-in and security.
"Right now, first-class is all about creating an over-the-top experience for passengers," says Edward Plaisted, chief executive of Skytrax, a London-based airline and airport-quality ranking firm. At a time when some carriers have eliminated first class altogether (in order to focus on business class), 35 others have not only kept it, but kicked it up a gilded notch. The ones keeping it, says Plaisted, are striving for "that wow factor."
In Pictures: World's Best First Class
Singapore Airlines' first class, for example, gives its passengers a choice between Dom Perignon and Krug champagne, and while fliers change into their Givenchy sleep suits and slippers in the extra-large bathrooms, their seats are turned into actual beds with sheets, a down duvet and oversize pillows.
Emirates first-class seats are mini-suites with sliding doors offering passengers total privacy. Cathay Pacific actually has skillets and rice cookers on board for its top-tier fliers, which means that eggs are made to order and rice dishes are prepared fresh.
World's Best Airlines
Best Business Class
Best Low-Cost Carriers
Best Business-Class Lounges
Industry experts say that airlines are hoping amenities like these will entice passengers to spend the hefty first-class fares, which are an average of $6,922 for a one-way ticket on a European airline (an increase of 16% from a year ago), and $7,377 on an Asian carrier, up 12% from a year ago, according to Harrell Associates, an airline consulting firm in New York City that tracks ticket prices. U.S. airlines don't figure into the mix because most have consolidated first and business into one class.
Despite the steep cost for a ticket, first class is more a marketing tool than it is a money-maker.
"It's not a major source of revenue for airlines to have a first class," says Mike Boyd, president of the Boyd Group, an aviation consulting group in Evergreen, Colo. "Nowadays, business class is at such a high standard that most travelers are happy with flying that, and a lot of first class is filled up by upgrades from frequent fliers." Most full-fare first-class fliers are traveling for pleasure, not business.
Out-Of-This-World Options
Of the roughly 35 airlines worldwide who do offer first-class, fully flat beds, a three-to-one passenger-to-crew ratio (in biz-class, it is typically 10 or 15 passengers for one crew member), and sumptuous meals are par for the flight. However, a handful of carriers are trying to distinguish themselves by improving passengers' airport experience.
"Passengers complain that going to the airport is becoming more hellish with longer security lines and more time wasted before the flight," says Plaisted, "so some airlines are focusing on making the ground experience pleasurable for first-class fliers."
Qatar Airways is an example. First-class passengers flying out of Doha have access to a new separate $90 million terminal that resembles a five-star hotel with marble floors and cascading waterfalls. Passengers are cosseted from the moment they arrive at the airport. An attendant takes their bags, checks them in and leads them to a lounge, which has several fine-dining restaurants, a medical center and a spa with a sauna and Jacuzzi.
The luxe factor continues on board when fliers get caviar service, full-size pillows, white linen mattresses, Australian wool blankets and Bulgari toiletry kits. Each seat also has a 23-inch meal table, which lets two people dine across from each other, like in a restaurant.
It's amenities like these that give Qatar the distinction of the best first-class airline in the world on Skytrax's annual survey, which lists the top 10 in this category. The survey was conducted from August 2006 to June 2007 and includes a variety of input sources, including online and e-mail passenger interviews, business-research groups, travel-panel interviews, corporate-travel questionnaires and phone interviews. It takes into account nearly two dozen criteria, such as check-in, lounges, onboard amenities and staff service.
These are the areas in which carriers such as Thai Airways (No. 5 on Skytrax's list) are trying to set themselves apart.
First-class passengers are waited on hand and foot from the moment they arrive in a private section of Bangkok's Suvarnabhumi's Airport. A personal concierge checks them in and escorts them through security to a lounge with wi-fi, a sauna and a spa that offers Thai massages. When flying into Bangkok, a concierge fast-tracks them through immigration, customs and bag pick-up. The perks onboard aren't bad either: passengers receive Bulgari toiletry kits and have a choice of 22 entrées, which can be pre-ordered.
Australian carrier Qantas' first-class lounges in Sydney and Melbourne have a library, a fine-dining restaurant, a business center and a spa that offers massages. Seats onboard transform into beds 6.5 feet long, and entertainment is 400 video on-demand channels. Dining is an eight-course extravaganza, which can be paired with wines, and Payot products are stuffed into the designer silk toiletry kits (the men's by Akira Isogawa, the women's by Colette Dinnigan).
It may not be exactly like staying in a five-star hotel--after all, there are no king-size beds and Jacuzzis on board--but with all its lavish amenities, first-class flying comes pretty close.
Singapore's CapitaLand to invest 47.7 mln sgd in Vietnam jv to develop villas
SINGAPORE (Thomson Financial) - Southeast Asia's biggest property developer CapitaLand said Friday it has, through unit CapitaLand (Vietnam) Holdings, entered into a conditional joint venture agreement with an affiliate of Vietnam's Azure City Co, to develop a residential site in Ho Chi Minh City .
CapitaLand said it will inject 47.7 million Singapore dollars for a 75 percent stake in the joint venture company.
The company intends to build about 300 luxury villas on the 117,200 square meter site to be launched by the third quarter next year.
This will be CapitaLand's third project in Vietnam, and in all it has a pipeline of about 1,600 homes in Ho Chi Minh City, the company said.
CapitaLand said it will inject 47.7 million Singapore dollars for a 75 percent stake in the joint venture company.
The company intends to build about 300 luxury villas on the 117,200 square meter site to be launched by the third quarter next year.
This will be CapitaLand's third project in Vietnam, and in all it has a pipeline of about 1,600 homes in Ho Chi Minh City, the company said.
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