Taking the Plunge
Make That Second Home a Realty
by William Thompson

Is it time to buy that second home? If you're going to make that move, there's no better time than now. Statistics show that a third of all Americans want to own second homes. The statistics also show that these people believe they have a 50-50 chance of doing so.

The problem with that 50-50 chance theory is that the "baby boomers," now in their early 50s, have begun to dominate the second home market share and drive up the prices. Boomers are buying second homes in record numbers.

"The price you may be expected to pay for that second home might surprise you," states Janet Stevens of ERA Realty in Big Bear Lake. Compared with Orange County properties, Big Bear Lake offers much more for much less. For instance, on the adjacent page you will see a 5800 square foot home on 3/4 acre nestled among the pines that is constructed totally of Canadian logs with interior beams carved and sculptured with an unsurpassed attention to detail. This magnificent home boasts five bedrooms with four full baths and two half baths. Both living and family rooms soar two-story with open beams. This spectacular log home features five fireplaces, state-of-the-art media room which contains a big screen projector and surround sound for $1,450,000.

Experts explain that you should be ready to pay a higher price for such a home located on the lake. However, Ms. Stevens showed SC Life Magazines some beautiful small cabins, which young couples could purchase for as low as $175,000.

In today's second home mortgage market, most lenders charge the same interest and points for second homes as they do for primary residence. SC Life found that financing does not seem to be a problem, and young couples can actually put their second home into a vacation rental program to help offset the costs. Rose Wright, an Orange County realtor, who specializes in beach and mountain resort properties, states, "I was astonished at the value one is able to get and more excited by the terms and financing that is available. That goes for young families as well as sophisticated estate buyers."

Rose predicts that the second home market will continue to grow and advises buyers of vacation property to invest no more than a three hour drive from a major city. She also recommends that the area have all-season activities, such as boating, fishing, skiing, mountain biking and water sports. Residential amenities are what give your vacation property its resale and rental appeal, says Wright. This makes Lake Arrowhead and Big Bear Lake the ideal second home market for buyers from Orange and San Diego counties.

Chris Heller of Keller Williams Realty in San Diego, one of the most respected and successful realtors in the nation, states, "The key is to choose an area that is popular year round." It's obvious that if skiers or other outdoor sportspersons can easily visit your area year round, your rental and resale prospects escalate. This gives Orange County, Los Angeles, San Diego and the Inland Empire a huge advantage in the marketplace.

Money Magazine rated Big Bear Lake the second best location in America to purchase a second home. The Los Angeles Times recently ran a huge article on vacation home rentals and have regularly documented the value and demographics of Lake Arrowhead, not only as a second home destination but as a primary residence for telecommuters and upscale home businesses. This is the reason Money Magazine chose Big Bear Lake as one of the best locations in America to purchase a second home. That equates to Big Bear Lake being the number one location in California to buy a second home.

SC Life recently sat down with arguably Lake Arrowhead's most successful real estate broker, Lynne B. Wilson. Lynne recognizes that as our freeways become more crowded and the amount of homes and proposed airports swell, many high-tech, high-stress entrepreneurs are not only going to burn out, they're going to burn up-up the hill to establish or buy businesses, that is. We ask Lynne if she thought the market for these types of purchases was going to flatten out or fall off. Lynne stated that she felt the market would return back to normalcy but as long as there is a market, there will be buyers for second home investments. Lynne further explained that the sophisticated investor in the Lake Arrowhead area is not as affected by mortgage rate fluctuation or economic swings.

Lynne still feels that there is a gap, specifically for the upscale home operated business owners relocated to Lake Arrowhead and the surrounding communities of Lake Gregory, Crestline, and Running Springs.

SC Life chose these listings at random, finding the financial and pricing for residential second homes still affordable.

1. Great Cabin in Peter Pan area. 1689 square feet. 3 Bedroom / 2 Bath has beautiful mountain views. $349,000.
2. Nestled in the trees, secluded. 2 Bedroom plus open loft. 1.75 Bath, close to ski slopes. $309,000.
3. Your Dream Cabin. Adorable Sierra Cabin 2 Bedroom 1 Bath in great central area. Vaulted ceilings, lots of woods accent. Great for vacation Rental. $259,000.
4. This is the Secluded Cabin you have been looking For. 2 Bedroom / 1 Bath Cabin Large Lot with lots of trees. Wood cathedral ceilings, comes furnished. Great second home or vacation rental. $299,000.
5. Real Log Cabin in Story Book Setting. This 3 Bedroom / 1 Bath is right next to the golf course and minutes away from Bear Mountain Ski Resort. Has a great history for vacation rental. $264,900.
6. Large Home just steps from the National Forest. 4 Bedroom / 2.5 Bath. Wood plank flooring. There's no better deal under $500,000! Excellent vacation rental history. $499,900.
7. Great Moonridge Location. Walk to ski shuttle. Spacious 4 Bedroom / 2.75 Bath, large kitchen/island and breakfast bar. Boats ski slope views from almost every window. $459,000.
8. Super investment property, duplex with lake view, 3600 square feet, each unit has 3 Bedroom / 2 Bath. Fulltime or vacation rental income. $685,000.
9. Exclusive detail to this log home. Over 4000 square feet located in prestigious Eagle Point. Gorgeous landscape. Walk to the Lake. Wrap-around decks. Stone Face BBQ. Under $2,000,000.
10. Lake Arrowhead Estate. Located in prestigious Cedar Ridge Estates. 2.85 acres, unique koi pond and waterfall. Built by acclaimed Ron Dolman. Wine tasting cellar. 6 Car Garage. Designed for the Rich and Famous who require only the best. Offered finished with antiques. $3,350,000.
11. Lake Arrowhead Mountain Resort. Lakefront with lighted tennis courts. Classic estate on approx. 1.77 manicured acres. 5 Delightful Bedrooms, Master Suite with Walk-in Closet, 5 Bathrooms. The lake views are breathtaking. Dock house at water's edge. South facing. Sun all day. $4,500,000.

If you plan to rent your second home, it's best to contract a credible vacation rental agency. You can expect to pay about 30 percent to a rental agency to handle all aspects of check-in, deposits, and checkout. The 70 percent you net eliminates all the time and energy you would put into renting it yourself. If a problem arises, the vacation rental management company is local and can address any issues immediately.

In recent years, the marketing of second home vacation rentals has become much more sophisticated.

Nick Lanza of Big Bear Resort Vacation Rentals in Big Bear Lake states, "We spend thousands of dollars to promote our vacation rentals. Therefore, we've developed a repeat clientele that assures us return business and keeps our rentals occupied."

For further information regarding mountain resort properties, broker contacts and vacation rentals, please contact the William Rose Agency at 949-498-0705 or 760-476-3595.

(Travel & Real Estate 2006)