Slide 3-1 The Recreation and Lifestyle Market CHAPTER 3

Slide 3-2 Picture the Market  What does vacation home mean to you?  Major factor—favorite recreational activities

Slide 3-3 What Motivates Buyers? Investors Lifestyles Life Stages  Rental Income—the same features attract renters and buyers  Value Appreciation  Part time use  Shared ownership  Enjoy interests and hobbies  Snowbirds  Refuge from urban life  Luxury  Splitters  Retirement or pre-retirement  Family time with children and grandchildren  College student housing

Slide 3-4 Beach and Water Sports–26% Boating–17% % Hunting and Fishing–15% Golf–10% Biking, Hiking, Horseback Riding–9% Winter Sports–8% Tennis–4% Theme Parks–3%, Gaming–2%

Slide 3-5 Know Your Buyer Profile BUYERS LOCATIONS PROPERTIES  National data puts the local market in perspective  Most 2 nd homes—Florida, California, Texas, Michigan  Most 2 nd homes per capita  Maine, Vermont, New Hampshire, Alaska, Delaware, Arizona, Wisconsin, Montana, Hawaii  Coastlines, rivers, lakes, mountains  Single family homes  Purchase is always discretionary

Slide 3-6 Vacation and Investment Properties Market Share

Slide 3-7 New and Existing Home Sales (000)

Slide 3-8 Median Sales Price

Slide 3-9 Who is the typical buyer or investor? What kind or properties do they purchase? When are the properties used? Where are properties located? Why and how do buyers purchase? Get to know your client

Slide 3-10 Typical Buyer  Under 45 years (46%)  Two incomes in household  Median income $92,100  Second largest group 55+ at 31%

Slide 3-11 Profile of Homes  Time rented  Investors—55%  Vacation-home—23%  Distance  Investors—21 miles  Vacation-home—435 miles

Slide 3-12 Ten Trends for Second Homes Ten Trends for Second Homes 1.Growth in high-population areas 2.Diversified economies fare best 3.More multi-unit structures--condos 4.Education and income are better predictors than age 5.Married couples, empty nesters largest group of buyers 6.Increasing diversity—1 in 4 minority households high income 7.Buyers want low crime, low cost of living, safe-house refuge for foreigners 8.Knowledge-economy workers can work from anywhere 9.Annual increases of 200,000 units 10.Growth: South 50%, West 30%, Northeast 10%, Midwest 10%

Slide 3-13 Waterfront Property  Proximity and access  Riparian rights  Intended activities  High ground  Dock space  Navigation  Water level and temperature  Beach migration and erosion ?

Slide 3-14 Golf Resorts  Year round climates  Match for skill and strength level  Variety of courses  Club dues  Distance to courses ?

Slide 3-15 Parlay Your Own Interests  Arrange a trip with a good client to try out golf courses, ski runs, fishing, climbing, hiking…  When the client finds the right location, hook up with a local real estate professional for a referral.

Slide 3-16 Ski Areas  SI/SO  Lifts  Transportation to slopes  Sun exposure  Indoor parking  Ski storage Is there a hot tub?

Slide 3-17 Hunting and Fishing  Highly regulated  Licenses  Seasons and limits  Local rules and customs  Guide services, dressing out, storage  Best fishing spots  Wild plant gathering limits

Slide 3-18 Birding  Fastest growing nature hobby  Best locations?  Bird trails  Local rules

Slide 3-19 Unexpected Locations  Military bases  Academic communities  Small towns and rural  Where else?

Slide 3-20 Student Children  Better value than room board in the dormitory  Income from roommates seasonal renters  Proximity to campus  Parents need lists of service providers for repairs and maintenance  Graduation = resale