Elizabeth Harris
04/01/2007
Many second-home buyers make their acquisition decisions primarily based on lifestyle requirements, overlooking the possibility that their chosen haven could decline in value. When divining the future performance of a second home, remember these factors:
Determine a prospective property’s actual value by calculating the
cost of rebuilding the home; take into account rising construction costs,
which have increased by about one-third in the past three years.Seek unusual properties with limited potential for future development.
Consider resort communities that offer year-round activities. Look for a ski chalet with plenty of summer-weather options, such as golf, horseback-riding, hiking or fly-fishing.
Find developers whose other communities you like—and buy early.
Illustration by C. J. Burton.
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