You make money when you buy, not when you sell a home, suggests one popular idiom. That could be the reason the wealthy are trolling for bargains.

While most of America is struggling with four percent gains in inflation, the wealthy, with discretionary income of $100,000 or more, believe that today’s market is a good time to buy.

According to The Annual Survey of Affluence and Wealth in America, from American Express and the Harrison Group, 40 percent of the nation’s wealthy plan to buy real estate in 2008.

The participants were divided into groups — the upper middle class ($100,000 to $149,000 annual income), the affluent ($150,000 to $249,000) and the super affluent ($250,000 to $499,000.)

Of the wealthiest, 41 percent said that owning a second home was “almost a requirement,” with 33 percent in the market for such a home in 2008. One quarter are shopping for a third home.

The wealthy view real estate as diversification from their other investments, and 88 percent believe that real estate values will rebound. Asked if the real-estate market represents a buying opportunity, 67 percent of upper middle class respondents agreed, as did 72 percent of the affluent and the super-affluent.

But only the most wealthy were more committed to putting their money where their mouths are. Seventeen percent of upper middle class respondents plan to buy a home this year, as do 24 percent of the affluent and 26 percent of the super-affluent.

Not that it means they’re scared of the market. They simply could already be real estate owners.

One in ten homeowners owns a second home, twenty three percent of homeowners age 45-64 own two or more homes, as do 24 percent of those aged 65.

One-third of the homes sold in 2007 were to second-home buyers and investors, says the National Association of Realtors, even though only 13 percent had incomes above $100,000.

Owning real estate isn’t just for the wealthy. It could be one of the best ways to become wealthy.

Reprinted with permission from Realty Times, http://realtytimes.com.

Michakewa Shores is a wooded, waterfront community in northern Michigan with one-acre building sites and 40 acres of common land dedicated to wildlife viewing and bird watching.

Check out our new Land Buyer’s Guide lens on Squidoo.com. It includes a few articles not published on this site and a link to our property tours on YouTube.

From StreamLine Timberworks’ Spring 2008 newsletter:

On May 24, 2008, StreamLine Timberworks and Cornerstone Builders will unveil a new design/build program at the Round Mountain Falls development just outside of Brevard, NC. This McKeough Land Company project is headed up by Mr. Andy Baker. Andy has invited StreamLine Timberworks and Cornerstone Builders to work with existing property owners on custom home design build projects in this pristine and scenic development.

For more information on Round Mountain Falls and their upcoming property event, log onto www.roundmountainfalls.com.

A few weeks ago, we published an overview of things to consider when evaluating lakefront property. Since that article was published, several clients have asked more detailed questions. Through these discussions with our clients, we’ve developed an additional list of factors to consider before purchasing lakefront property:

1. Lake Frontage: How important is private vs. shared frontage?
2. Body of Water: How important is it to be on an all-sports lake vs. no-wake lake or river?
3. Woods: How important is a wooded homesite?
4. Lake Bottom: How important is a sandy bottom lake vs. mucky bottom lake?
5. Lake View: How important is a big, unobstructed lake view?
6. Sunset View: How important is a sunset view?
7. Protective Covenants: How important is it to know quality homes will be going up next to yours?
8. Immediate Usability: How important is it to have a home ready to use vs. building your own?
9. Roads: How important are paved roads vs. gravel or two-track?
10. Utilities: How important is it to have underground utilities already installed to the property’s edge?

Again, this is a partial list and it assumes that the location of the property already meets your requirements. We hope, however, it gives you an idea of the different factors that should be considered when purchasing lakefront property. At Michakewa Shores, for instance, we have spent a lot of time comparing our property to other lakefront property in the area using these criteria and it has helped us to put a value on the property. We invite you to come explore Michakewa Shores and see how we stack up against other options in the area.

by Peter G. Miller

In the midst of all the gloom and doom on the housing front, one remarkably-bright statistic has just been announced: Last week the National Association of Realtors reported that 12 percent of all existing home sales last year were not primary residences, they were instead vacation homes.

It turns out that a lot of us have second homes at the lake, the beach, in the mountains or just somewhere different. The idea that so many of us have not just one house but two is at least counter-intuitive given that almost 1.3 million homes were lost to foreclosure last year, according to figures from RealtyTrac.com.

What do such numbers say about our housing market?

It takes a given number of dollars each month to support a primary residence, a standard that a large number of owners are not meeting. As the Mortgage Bankers Association explained in its most-recent delinquency report, “the rate of foreclosure starts and the percent of loans in the process of foreclosure are at the highest levels ever.”

And yet at a time when many households are plainly having huge problems, it’s clear that another group of households is doing very well. Not only can folks in this second group support one house, they can afford at least two.

The implicit reservoir of wealth represented by vacation property owners is important because it means there are large numbers of people out there with dollars that can be used to stroke the economy. If this trend holds up, it also means that about 600,000 second homes will be sold this year, a big and positive number at a time when big and positive numbers should be welcomed.

Reprinted with permission from Realty Times, http://realtytimes.com.

With eight homes completed in the past two years, three currently under construction, and possibly two more starting this spring, we thought it would be a great time to share with you the story of Bob and Linda Goltz, a couple that will soon have their ideal, Northern Michigan retreat at The Reserve.

In the summer of 2007, Bob and Linda Goltz closed on their homesite at The Reserve. With three grown children living in various places across the country, Boyne Mountain offered a convenient location with amenities and activities for their entire family. The Reserve at Boyne Mountain provided the Goltzes a location that was convenient to all of the activities of Boyne such as skiing, golf, hiking, biking, and the beach at Deer Lake, but was out of the hustle and bustle of the base—allowing them to create their own space to spend time together.

Working with Josh Howard of Howard Smith Corp., a builder that has completed several homes at The Reserve, the Goltzes outlined several requirements for their ideal family retreat. The home was to be a log home, had to provide ample open space for family gatherings and entertaining, enough bedrooms to comfortably house the entire family, have a walkout lower level, and be well-equipped to handle all the snowy and muddy gear that is part of outdoor life at Boyne Mountain.

Taking advantage of the homesite, Josh situated the house so it would accommodate a walkout design. With some modifications to the original plan, the garage was angled from the main section of the house to give the entrance a warm and welcoming feel. The breezeway that connects the garage to the house was designed as an oversized mudroom and catch-all. The interior has a very open floor plan—perfect for entertaining and connecting with family—a first floor master suite, two other large bedrooms, and a den that can be used as a fourth bedroom if necessary.

A few extra design features were also important: the main floor of the house is completely wired for surround sound (that will be extended to the patio this summer) and all the interior walls are insulated to help contain the noise of the socializing.

The Goltzes’ home was started in mid-Winter and should be completed by May—just in time for their first family gathering. Throughout the process, Josh and the Howard Smith team have been communicating with the Goltzes and working to ensure they’re completely satisfied with their new family retreat at The Reserve.

The Reserve at Boyne Mountain is a perfect place to create your family retreat. If you are thinking of buying and building, now is a great time to move forward—interest rates are low, construction is reasonable, and it’s a buyer’s market. You could soon be in the same position as Bob and Linda–planning your first family retreat at The Reserve.

The Money Magazine article we mentioned last week—“Build Your Dream House Now”—is one of the best assessments of the current real estate market that we’ve read. We recommend that you read the entire article, but let’s look at one section that’s particularly eye-opening:

Behind the dark clouds hanging over the housing market is a very compelling silver lining: The cost of building the home of your dreams is coming down. “If one or two years ago it cost you $300,000 to build a custom home, today it should cost tens of thousands of dollars less,” says Jim Haughey, chief economist at Reed Construction Data.

Why? With new-home demand drying up, the price of some construction materials has started to sink like a poorly laid foundation. Framing lumber is now 18% cheaper than it was 18 months ago, while drywall is selling for 40% less.

And because overextended developers picked up too much land during the bubble - and are motivated to sell - some lots are becoming dirt cheap. Land prices (often the single biggest expense for custom homes) in certain areas have fallen more than 20% in the past year or two.

“In terms of finding land you want at a good price, this is the best market that I have seen in my 30 years of home building,” says Carl Heldmann, builder and author of Be Your Own House Contractor.

This is exciting news for anyone who has been waiting on the sidelines for the perfect time to buy. Sure, some will wait for prices to fall even more, but existing home sales increased in February—the first improvement in 7 months. We’ll need to see a few more months of similar gains before we can say with certainty that the market is stabilizing, but it looks like the window to take advantage of these historically low prices will soon be closed.