According to the NAR survey, buyers of homes purchased solely for investment last year were somewhat younger and less affluent than vacation home buyers, with a median age of 39 and a median household income of $90,250. As you might expect, their investment property was close to their primary residence, a median distance of 22 miles.

The reported reasons for purchasing a home for investment purposes differed somewhat as well; 46 percent sought rental income; 43 percent wished to diversify their investment portfolio; 23 percent primarily for the tax benefits; followed by use for vacations or a family retreat; as a place to put extra cash to work, for use by a family member, friend or relative. Eventually using the property as a primary residence trailed the list, at 12 percent.

Buyers responding to the NAR survey reported that over 37 percent of investment homes are in a suburb, 22 percent a rural area, 18 percent urban or central city, and 7 percent in a resort area. Detached single-family homes made up 63 percent of the total, 26 percent condos, 6 percent townhouses, and 5 percent “other”.

According to the survey, buyers of homes for investment purposes plan to keep them for a median period of five years; 33 percent plan to hold them for six years or more, and 12 percent plan to sell within a year of purchase.