Unlocking Your Second Home

The bottom line, says Esther Muller, president of The Real Estate Academy, is that "people are thinking about second homes more intelligently."

Location, Location, Location

While Florida has been a top destination for second homes, at least for East Coasters, purchasers today increasingly consider alternative locales.

One reason is that "property insurance on the Atlantic Coast and Gulf Coast has skyrocketed because of natural disasters," says Greg McBride, senior financial analyst at Bankrate.com.

Indeed, Maloney remembers the heartbreak after his 10-day-old Mini Cooper was totaled while parked at his Florida condo during the string of hurricanes in 2005. Damage insurance on the home costs $1,500 a year.

Still, he selected Fort Lauderdale after noticing high-profile commercial developers breaking ground there, a sign of future appreciation. "If you see names like St. Regis and Trump [building properties], they've done their homework and you can do some piggybacking," says Maloney. The town is also near a few of his clients, which allows him to occasionally mix business with pleasure.

Rusty Anderson, senior vice president of NorthPoint Real Estate Investment Services, advises clients to choose markets with job and population growth. Hotbed areas today, he says, include Albuquerque, N.M.; Raleigh, N.C.; and Portland, Ore., all of which boast robust rental communities as well.