Close your eyes and imagine a slice of paradise. Do you dream of owning a second home along an endless strip of white sand? Or relaxing on the porch of a rustic cabin, looking out at a mountainside? Perhaps you relish a cozy lodge after a day of skiing. When it comes to owning a second home, experts suggest you make no small plans. In that spirit, here are five fantastic second-home locations: Bald Head Island, N.C.; Mexico’s Baja Peninsula; Jackson Hole, Wyo.; Placencia Peninsula, Belize; and Sedona, Ariz. These places are hot spots for second homes either because they have a long tradition of quality and value or because they’re recently discovered gems that are expect to gain in popularity.Each offers the kind of four-seasons lifestyle that housing experts say buyers should look for when choosing a second home. All of them have seen consistent increases in home values and are expected to remain attractive even as interest rates rise and some housing markets soften.

It’s places like these, located near a resort or recreation area, that are recommended in the new book, “Investing in a Vacation Home for Pleasure and Profit,” by James H. Boykin, professor emeritus of real estate and land development at Virginia Commonwealth University. “People buying second homes are often buying lifestyle rather than bricks and mortar,” he says. “So, you should find a place that suits you, where you can live year-round—no use in locking up the place for six months and leaving it.”

These locations are also a good investment, he contends, whether a buyer is looking for immediate rental income or a high return when it’s time to sell. And they tend to hold their value in softer real estate markets. “These places are desirable because of their surroundings,” Boykin says.

According to a recent study by the National Association of Realtors, some 3.3 million second homes were sold last year, up 16 percent over 2004. Nearly two-thirds of all vacation/seasonal homes are owned by people 42 and older, with the typical owner being 59. Half of all second homes are located in resort and recreational areas, according to the NAR, and have posted annual double-digit price increases over the past five years.

1. Bald Head Island, N.C.

While the Outer Banks get all the attention, Bald Head Island sits quietly to the south, just off the Atlantic coast, 30 miles south of Wilmington, N.C. The island is reachable only by ferry, and automobiles are prohibited. Residents make their way on foot, bicycle or golf cart, soaking up the beauty of the white sand beaches, salty marshes and protected forest land. Development is allowed on only 2,000 acres of the 12,000-acre island, and there are only 2,000 home sites; about half of them have been built on, with residences ranging from $400,000 condominiums to $3-million single-family houses with beachfront views.

Residents are lured by the fishing, water sports, golf, bird watching, loggerhead turtle sightings and the laid-back lifestyle. “You take a 20-minute ferry ride and it’s like going to another world,” says Russ Donald-son, 46, a residential real estate developer from far northwest suburban Kildeer, whose family recently bought a three-bedroom house on the island.

Average daily temperatures—July: high of 90, low of 72; December: high of 59, low of 37. (baldheadisland.com)

2. Baja Peninsula, Mexico

The majority of second-home buyers here set their sights on the cities of Cabo San Lucas and La Paz, at the southernmost tip of the 1,000-mile-long peninsula, which juts into the Pacific Ocean. Long known as popular cruise ship destinations, these cities are experiencing a residential development boom. Warm weather, miles of beaches and breathtaking mountain views are the main attractions, but there are a growing number of boat marinas, golf courses and tennis courts. And there are the considerable attractions of Mexico—the spicy food, colorful music and dance and adobe architecture.

Affordable prices also are a draw. A two-bedroom condominium with an ocean view can be purchased for $250,000, while a four-bedroom waterfront home with a pool typically sells for about $1 million. “The best part of the day is watching the sun set over the water while the dolphins swim by,” says Roy Mosser, 51, a commercial real estate developer from Decatur who owns an oceanfront home at the Paraiso del Mar development in La Paz.

Buying property in Mexico has become easier as a result of the North American Free Trade Agreement, but experts still recommend that you hire a local lawyer.

Average daily temperatures—July: high of 96, low of 73; December: high of 77, low of 58. (www.visitmexico.com)

3. Jackson Hole, Wyo.

While Jackson Hole is experiencing a development boom, it hasn’t lost its cowboy charm. This still is a land of wide-open spaces, with many property listings describing homesteads that include acres of ranch land. The city of Jackson has become pricey, with single-family homes averaging more than $1 million. But in neighboring communities, such as Victor and Alpine, buyers can find a three-bedroom, two-bath home on two acres for $300,000, says Clayton Andrews, executive vice president for Sotheby’s International Realty in Jackson Hole.

People are drawn here for the skiing, snowmobiling and hiking, and the beauty of two national parks, Yellowstone and Grand Teton.

There also are some financial advantages. Wyoming has no state income tax, capital gains or inheritance tax. “You’ll find a lot of people who buy a second home here setting it up as their primary residence for the tax benefits,” Andrews says.

Average daily temperatures—July: high of 82, low of 41 December: high of 29, low of 7. (jacksonholechamber.com)

4. Placencia Peninsula, Belize

The Caribbean country of Belize is becoming a popular alternative to the hustle, bustle and high density of Cancun, Mexico. Belize lies just south of Mexico’s Yucatán Peninsula and offers the same features—white sandy beaches; the aquamarine Caribbean; snorkeling, scuba diving and other water sports; and lush forests. And on the Placencia Peninsula, in southern Belize, residential development is booming. With some 16 miles of oceanfront property, it’s becoming the beachhead for million-dollar plantation-style homes. Yet a three-bedroom, two-bath, oceanfront house can still be purchased for $300,000.

Developers boast of Belize’s relative political stability: The country is democratic and part of the British Commonwealth (and the national language is English). But, just to be on the safe side, most new developments are gated communities. Belize also offers some tax benefits, such as no income or capital gains taxes. There also are virtually no property taxes, although homebuyers pay a one-time, 15 percent purchase tax at closing.

“Belize is one of those well-kept secrets. People who are buying now are getting in at the start of the curve,” says Rick Gass, an agent for The Placencia Residences, one of the new developments on the peninsula.

Average daily temperatures—July: high of 86, low of 79; December: high of 80, low of 71. (travelbelize.org)

5. Sedona, Ariz.

The red rock buttes of Sedona have long attracted visitors, and within the past two decades, the area has become a hot second-home destination. Though the town has a population of only 17,000, it seems much larger, owing to its broad cultural offerings, including art galleries and live theater, as well as a choice of upscale restaurants. Sedona also has a New Age flavor: Some people have settled here because they believe the town rests atop some of the Earth’s strongest vortexes, or energy centers.

Sedona has become a popular vacation spot for celebrities, who gravitate to the $3-million mansions cut into the buttes. But buyers can still find two- or three-bedroom homes for $350,000. Even the smallest house seems enchanting against the breathtaking red rock backdrop.

And Sedona offers four-season recreation; golf, hiking skiing and snowmobiling. “Up to 25 percent of our market is in second homes,” says agent Tod Christensen, vice president of Coldwell Banker First Affiliate in Sedona. “Sedona has always been a strong market, and homes here have steadily risen in value.”

Average daily temperatures—July: high of 95, low of 66; December: high of 57, low of 32. (visitsedona.com)

–John Slania

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