Back Roads, Charming Towns : Retirement, Relocation, Vacation : Back Roads, Charming Towns Blog : Vikki Grodner

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We recently hosted a high school graduation party for Alex at my sister Sheri and brother-in-law John's getaway place at Smith Lake in Warren County, Alabama. As is so typical of me, before the weekend was over, I was scheming and dreaming about building a place of our own along these same shores.

Ken's reaction? Sell that book you're writing and then we'll talk. While this wasn't an unenthusiastic response (although it might sound that way), this Sunday's Parade magazine offered even more practical commentary on the "dollar and sense" of such a purchase.

Like others of our generation, my reasons for wanting such a property are simple.

1.  I believe it is a good investment (a fact beared out by the appreciation that John and Sheri's little corner of heaven has realized in the past four years).
2. I want to establish a family base that we can share with our children and their future children, eventually passing it along to the whole lot.
3. And the sense of peace and calm in this magnificent setting is truly indescribable.

Last year, 36% of residential sales were for reasons just like these, as more and more boomers rushed to purchase second homes, according to the article. Author Vivian Marino's other pointers:

• Look for "hidden gems" that have many of the attributes and proximity to better-known, affluent second home communities (think Bluffton, SC, vs. down-the-road neighbor Hilton Head). Check out up-and-comers Blue Hill, Maine; Guilford, Connecticut; Port St. Joe, Florida; Carolina Beach, North Carolina; Gold Beach, Oregon; Bigfork, Montana; Wallace, Idaho; and McKinleyville, California.
• Use the rule of supply and demand to make smart buying choices. If there is limited land to be developed or a limited type of attractive property (a three bedroom condo, for example) in a market, chances are good that your investment will only increase in value.
• Local banks and credit unions may provide better rates on second home loans, which sometimes require higher rates or larger down payments.
• Deductions you may be able to realize include interest and taxes. If you rent out the house during the year, such expenses as advertising, maintenance and depreciation may also be deductible, sometimes even allowing you to claim a loss.

Now time to get cracking on that book!