(ARA) - For those who've ever dreamed of buying a vacation home in the mountains, on the beach, or in the big city, it's becoming easier and more common for people to make that dream a reality.

In fact, Americans bought more than half a million vacation homes last year, according to the National Association of Realtors (NAR). Low mortgage rates, median sale prices that were down more than 15 percent, and the potential for generating substantial rental revenue are among the reasons many have made their dreams of a second home come true.

While baby boomers have historically led vacation home purchases, nearly half of the buyers in 2009 were under the age of 45, and the median household income of vacation home buyers was $87,500 - down from $99,100 just two years ago.

"An increasing number of younger buyers are getting into the market, seeing a vacation home as a long-term investment and a source for ongoing personal enjoyment and memories," says Tom Kelly, author of "How a Second Home Can Be Your Best Investment."

Kelly points to the NAR Investment and Home Buyers Survey that found vacation home owners plan to own their homes for an average of 16 years, up from 12 years in 2008 and 10 years in 2007.

Offsetting the cost of vacation home ownership

More people are able to afford a vacation home due in large part to the potential revenue stream that comes with renting the home to travelers - something that's become especially easy thanks to the rapid growth of the online vacation rental industry in the past few years.

HomeAway, Inc., which operates online vacation rental sites HomeAway.com, VRBO.com and VacationRentals.com, has grown dramatically since it was founded in 2005. The company now boasts more than 540,000 vacation home listings.

"Our goal is to make it as easy as possible for vacation home owners to advertise their properties and manage their bookings online," says Brian Sharples, founder and chief executive officer of HomeAway. "We literally deliver millions of rental inquiries each year to our owners who list their homes for rent on our sites."

Those inquiries can lead to substantial revenue. Sharples says the average second home owner rents out their property to travelers about 20 weeks a year, generating more than $35,000 in rental income annually.

"The rental income that our home owners generate can help cover a typical second home mortgage as well as basic home maintenance and repairs," he adds.

Tips for generating rental income from a vacation home

For those in the market to buy a vacation home, Kelly offers the following tips for where to buy, what to consider and how to maximize rental income.

1. Carefully review the destinations where you enjoy vacationing, and before you buy, consider the areas where consumer demand for vacation rentals is high.

2. Talk to an accountant about the tax advantages of owning and renting out a second home.

3. When you're ready to rent out the property, be sure to market the availability of the vacation rental to travelers by advertising it on sites like HomeAway.com or VRBO.com.

4. Check out other similar vacation rentals in the area to determine what rates they're charging, and price your home competitively.

For more information on buying a second home and effective strategies for maximizing rental income, visit HomeAway's online community for vacation rental owners at www.ownercommunity.com.

(ARA) - Between 25 to 50 percent of energy used in a home goes right out the window - literally. In most homes, windows provide the biggest openings between indoor and outdoor air, and the biggest opportunity for valuable energy to escape.

To assist homeowners with upgrading from old, drafty windows, the federal government is offering tax credits under a new act signed into law in late 2010. Available until Dec. 31, 2011, the tax credit is for up to 10 percent of the purchase price, excluding labor and materials for installation, and is capped at $200 for qualifying windows and skylights, and $500 for exterior doors.

Qualifying windows, doors and skylights must meet the Energy Star rating. According to Energy Star, installing windows, doors and skylights with the Energy Star label shrinks energy bills - and carbon footprints - by about 7 to 15 percent, compared to non-qualified products.

"Tax credits offer homeowners immediate savings, but the benefits of Energy Star rated windows are long lasting," says Erin Johnson, window expert from Edgetech I.G. "Research shows that in cold climates, energy-efficient, dual-pane windows with low-e coatings can reduce heating bills by as much as 34 percent. In warm climates, they can cut cooling costs by 38 percent."

Understanding Energy Star
While previous tax credits used a standard qualification for all states, the new tax credit is dictated by Energy Star requirements, which vary depending on four climate zones: Northern, North-Central, South-Central, Southern.

North and North-Central zones have stricter U-value requirements, which is the rate heat is lost through a window. In Southern and South-Central zones, the solar heat gain coefficient (SHGC) is more important because it signifies how well windows block the sun's heat from warming the indoors and counteracting air conditioning.

"For both U-value and SHGC, the lower the number the better the performance," Johnson says. "Requirements vary, so it is important to check Energy Star's website to find windows that qualify in your zone. However, to ensure the best long-term value, you should really look at all factors that make up the window from the glass and framing to the spacer system."

Window components that promote efficiency
True energy-efficient, sustainable windows hold such characteristics as low-conductivity gas fillings (argon or krypton), low-e coatings and nonconductive spacer systems that separate the glass panes. The spacer system is a key element to promoting sustainability in window systems because it provides the seal between the indoor and outdoor air. If that seal fails, condensation will occur and the gas filling will leak and no longer be effective.

"Nonconductive spacers, such as the Super Spacer warm edge spacer system, are known to provide a lasting seal, ensuring the window will retain its energy-efficient benefits for many years," says Johnson.

The outside materials also play a role in efficiency and sustainability.

"Homeowners are better off looking for nonconductive components, framing and sashes," Johnson says. "Wood, composite and fiberglass frames are time-tested and are proven to be the most sustainable and energy efficient, standing up to a wide range of temperatures, UV light and the deteriorating effects of condensation."

Edgetech I.G., an Energy Star partner, is educating homeowners, legislators and companies worldwide on energy conservation and sustainable building practices. To learn more about choosing energy-efficient windows or federal tax credits visit www.sustainaview.com or www.energystar.gov.