Despite the highly publicized downturn in U.S. real estate following the Freddie and Fannie bailout and housing bubble burst, local homeowners are discovering a silver lining in a stormy real estate market.

Falling interest rates and a burgeoning buyer’s market have made vacation home ownership more affordable and accessible than ever before. Second-home properties, especially those located in sought-after waterfront communities, tend to have a more stable appreciation record and higher return on investment than traditional real estate; not to mention coming with a tempting bonus: relaxation and rejuvenation.

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Designer waterfront condominiums at Heritage Harbor offer vacationing homeowners a luxury resort experience just over an hour’s drive from downtown Chicago

“Having our own vacation home was an investment that simply fit our lifestyle,” said Harry Hultgren, owner of a vacation home along the Illinois River in Ottawa, IL. “It’s our own sanctuary, a place where we know we can get away from it all.”

As interest rates continue to drop in the wake of the subprime mortgage crisis, consumers are finding it increasingly affordable to invest in second-home vacation properties, an opportunity few could have imagined just five years ago. Couple these low mortgage rates with the increased supply of homes and developers eager to attract potential homebuyers and the time appears ripe for investing in second-home properties.

“While there may be years of inventory currently available, the value of those properties has steadily increased for decades,” said realtor Mike Gaines of Century 21, who specializes in waterfront vacation properties. “We may be seeing a temporary cooling in equity gain, but there will not be any significant increase in supply forever. That will drive values ever upward over time.”

Waterfront properties in particular have become major targets for second-home ownership. The proximity to the water, opportunity for recreational activities and long list of luxury amenities make waterfront communities highly attractive vacation destinations. Steady demand has kept these scenic properties largely unaffected by the plummeting home prices that have affected inland areas.

National surveys report that nearly two out of three baby boomers express a desire to live on or near the water in their retirement years. That could amount to over 50 million homeowners flocking to waterfront communities. As these individuals reach financial maturity and approach retirement age in the coming decade, demand for waterfront properties is projected to soar.

Despite this increased demand, rising fuel costs and overdevelopment of coastal areas are causing vacationers to look closer to home for luxury waterfront living. That is where communities such as Heritage Harbor Ottawa, located on a pristine stretch of the Illinois River just over an hour’s drive from Chicago, have caught investors’ eyes.

“Heritage Harbor is a wonderful four-season opportunity for families that want a true resort environment with a close proximity to home,” said founder Tom Heimsoth. “This is truly where a ‘close to home’ location meets the ‘get away from it all’ mentality.”

Located on one of the most scenic waterways in the Midwest, Heritage Harbor Ottawa boasts an abundance of natural recreational activities, both on the water and off. Add to that signature designer properties, an authentic hometown atmosphere and luxury entertainment, dining and waterfront amenities and many vacation home owners are finding the perfect combination of quality and tranquility.

The property options at Heritage Harbor are designed to fit every type of homeowner. From designer condos to quaint waterfront cottages to the grand dame of the Heritage Harbor Inn, complete with luxury suites and condo living, there is a living space to fit every type of lifestyle.

“Once we saw what Heritage Harbor had to offer, we knew we had to be here,” said Hultgren, who along with his wife, Ann, owns a cottage-style home in the waterfront community. “The opportunities for outdoor recreation and relaxation are simply unbeatable.”

The presence of water is what draws many to this tranquil haven in north central Illinois. Both homeowners and boating enthusiasts can take advantage of the state-of-the art marina and Yacht Club, which feature 461 boats slips, a scenic harbor-side boardwalk and world-class dining and entertainment opportunities.

“There’s so much more to offer than anywhere else in the Midwest,” echoed Heimsoth. “At the convergence of these two rivers, you’ll find boating, fishing, exceptional outdoor recreational activities, and an authentic history – it seems like something right out of a movie.”

And investors seem to agree. As consumer confidence in the stock market continues to wane, homeowners are looking for alternative investment opportunities that bring intrinsic value as well as positive financial returns. Waterfront real estate investment fits neatly into that category.

Not only are home values projected to rebound steadily over the next few years, but vacation home ownership offers an incentive that stocks and bonds simply cannot deliver: an opportunity to enjoy your investment with the people you care about most.

Discover a quality investment opportunity and create family memories that will last a lifetime with exclusive waterfront living from Heritage Harbor Ottawa. Visit www.HeritageHarborOttawa.com or call 815-433-5000 for more information.