Skolnick's Scoop / Second homes are hot again

While the U.S. equity markets and money market instruments are continuing to be volatile, real estate investments are still a terrific option. Even in a downturned market, real estate is considered to be a long-term conservative strategy for growing wealth.

Rock-bottom home prices across the country and record-low mortgage rates have created a buying opportunity unlike any other in the last 20 years. Second homes have become a smart place to invest. Not only is it a chance to create memories, but can also a good return on your investment.

In the U.S., vacation home sales rose 8 percent in the last year, according to the National Association of Realtors (NAR). This represents the first gain in the last 3 years.

How you choose to use your second home can depend on your needs and time availability. It is extremely important to research your prospects well. Your Realtor can help you find top brokers in other locations. Or, you may choose to buy your second dwelling right here in Westport.

So, what makes for an ideal second home? Usually (if not using it as an income property), getting something that you don't already have! Maybe a house near ski slopes, on a first-rate golf course, or with fantastic tennis facilities. Don't forget, these are discretionary purchases, so ensure that they are in safe locations, and hopefully still offering great values.

You are most likely to use a second home more if it is easy to get to. Also, make sure your investment takes into account expectations. Can it be a potential retirement home when you are ready? While planning for the future, a good investment in real estate will take you a long way.

Once you have two or three communities in mind, narrow them down based on price, lifestyle, comps and current market conditions in the area you are considering, Your Realtor can help you with all of these considerations.

The bottom line, do your research, depend on top professionals and enjoy the search. At the end of the day, you'll grow your investment all while being able to use it!

Mortgage wrap

Craig Ellinwood, a mortgage banker with Atlantic Home Loans in Westport, reports that mortgage rates as of July 12 are as follows:

"¢ 30-year fixed -- 4.375% (4.570% APR).

"¢ 15-year fixed -- 4.125% (4.195% APR).

"¢ 5/1 ARM -- 3.750% (3.342% APR).

Conforming/Jumbo to $708,750 (Fairfield County)

"¢ 30-year fixed -- 4.750% (4.781% APR).

Jumbo: $750,000 to $1,500,000

"¢ 30-year fixed -- 5.375% (5.407% APR).

"¢ 15-year fixed -- 4.500% (4.571% APR).

"¢ 5/1 ARM -- 4.125% (3.567% APR).

Linda Skolnick, a Realtor with Prudential Connecticut Real Estate in Westport, can be reached by calling 203-246-0088 or through her Web site, www.GoAskLinda.com