Why buy a home in the Outer Banks?
Whether your ultimate goal is to own an investment property, a retirement or vacation home, or simply a year-round home on the beach, the Outer Banks is filled with incredible opportunities and a variety of properties for sale.
Can you rent a rental property in the Outer Banks?
While this might be the case in warmer vacation spots where you can rent year round, it is certainly not the norm in a place like the Outer Banks of North Carolina. Owning a rental property in the Outer Banks may be a worthy investment, but keep in mind the rental season is limited by seasonal temperatures.
How to find an investment property in the Outer Banks?
Your most valuable tool in the Outer Banks investment property search is your Realtor. It’s important to find the right one who will listen to your needs and be on the same page every step of the way. 7. Have you consulted a lender? Finding the right home mortgage lender is an important step in the investment property search.
What are the Outer Banks?
The main towns of the Outer Banks include Nags Head, Kitty Hawk, Kill Devil Hills, Duck, Corolla, and Rodanthe just to name a few. In the Summer months, the warm weather brings in up to 200,000 visitors to the area each year. This expanse of free and open public beaches stretches for hundreds of miles, adding to the charm of the islands.
Why are so many homes for sale in the Outer Banks?
Low prices, extremely low interest rates and record vacation rental income have made purchasing Outer Banks homes much more affordable. The rental income of many vacation rental homes is coming very close to paying for these properties that are selling today. This has rarely happened in over ten years.
Is beach property a good investment?
Buying a beach house can bring an excellent return on investment, a reliable income stream, and access to a delightful vacation spot. Many beach house investors purchase homes that they subsequently rent out during peak tourism times.
Is Outer Banks expensive to live?
Compared to other beach towns on the eastern coast of the United States, the Outer Banks is a relatively affordable place to live and is highly sought after.
How much is the average house in Outer Banks?
The first major trend is an increase in total units sold and total sales volume. Based on the Outer Banks Realty Group's annual report, the total number of houses sold in 2018 was around 1700 with an average sale of $346,000.
Where is the most affordable beachfront property?
American Beach Towns Where You Can Actually Afford to MoveDaytona Beach, Florida. Median home price: $216,917. ... Mastic Beach, New York. Median home price: $334,907. ... Long Beach, Washington. ... Coos Bay, Oregon. ... Swansboro, North Carolina. ... Ocean Springs, Mississippi. ... Port Arthur, Texas. ... Myrtle Beach, South Carolina.More items...•
What is the 2% rule in real estate?
The 2% Rule states that if the monthly rent for a given property is at least 2% of the purchase price, it will likely produce a positive cash flow for the investor. It looks like this: monthly rent / purchase price = X. If X is less than 0.02 (the decimal form of 2%) then the property is not a 2% property.
Is Outer Banks a good place to retire?
The Outer Banks Retirement Communities This is an incredible retirement community that features low tax rates, 4.3 medical centers per 1000 people, and plenty of stunning scenery and exciting things to do.
Are the Outer Banks sinking?
The National Oceanic and Atmospheric Administration has noted that by 2030 there will be seven to 15 days of high tide flooding nationally. By 2050, the frequency increases to 25 to 75 days. Sea level in this part of coastal North Carolina has risen roughly 3 inches since the early 1980s, according to NASA.
What's better Virginia Beach or Outer Banks?
Virginia Beach: Which Is Better? It's up to you! If you're more of a laid back kind of person, who's looking for a relaxing getaway for the whole family, an Outer Banks vacation is what you need! But, if you'd rather take a trip where there's always a lot of action, VA Beach is the way to go.
What is the nicest part of Outer Banks?
The Best Places to Live in the Outer BanksCorolla. The most northern town in the Outer Banks, Corolla is home to miles of beautiful beaches, wild horses, fabulous restaurants, a plethora of outdoor activities, and great golfing. ... Duck. ... Southern Shores. ... Kitty Hawk. ... Kill Devil Hills. ... Nags Head. ... Manteo. ... Rodanthe.More items...
Can you live in the Outer Banks year round?
Can You Live in the Outer Banks Year-Round? Yes, there are 34K people that call the Banks home year-round. The area infrastructure operates 12-months out of the year, so the towns are always “open”.
Is Nags Head a good place to live?
Nags Head, NC is a great place to live. There are tons of things to do like climbing the largest living sand dune on the east coast, Jockeys Ridge, or going out to locally owned restaurants for fresh local catch seafood!
Can a beach house pay for itself?
As you can see, finding a vacation rental property that can generate positive cash flow is very feasible. Whether you're intending to use it strictly as an income property or as an occasional second home, a vacation rental property can definitely pay for itself if you abide by the guidelines in this blog.
Is it worth buying a beach condo?
A beachfront condo has the potential to be an excellent long-term investment. Over the course of many years, you could easily earn several times what you paid for your investment. Not only that, but most owners of beachside real estate enjoy the added bonus of having a vacation home for their personal use.
Do beach condos make money?
Generally, though, successful beach house vacation rentals could typically earn anywhere from $20,000 up to $50,000 in yearly rental income, although some could make less, and others, way more.
Is living on the beach worth it?
It Makes You Healthier Outside of the obvious benefits, like being able to work on your tan whenever you want, the fresh air and vitamin D are great for your health. Studies also show that people who live near the beach are often less stressed and live happier lives!
What is commercial real estate investment?
The typical commercial real estate investment requires the investor to own a shopping center, office or apartment building or a rental home where someone is trying to live. Alien property with no intrinsic value other than investment possibilities. If you own a shopping center or apartment building your investment can deteriorate simply by ...
Can you add a vacation rental to your investment portfolio?
Vacation Rental Homes. Adding a rental home to your investment portfolio comes with benefits not available to other types of investments. Rental homes on the Outer Banks are not like those where you live. A vacation rental home is only rented during the vacation season, so it ends up being empty for most of the year.
Can you get a positive cash flow on an outer bank home?
Due to the overwhelming popularity of the Outer Banks, it is very rare to find a positive cash flow home. Of course, there is always a point where an increased down payment can turn any home into a positive cash flow. Most of the time, however, the rental income will help cover some or most of the holding costs.
Is real estate a good investment?
Real estate has always been a good way to diversify your investment portfolio. Typically, an investor would buy an apartment building, shopping center or rental home based on the capitalization rate or the possibility of appreciation in the value of the property. Nothing exciting but still a good solid investment.
Sales are Increasing
The Outer Banks real estate market has been steadily building over the last four years and has not slowed down in 2018. The first major trend is an increase in total units sold and total sales volume. Based on the Outer Banks Realty Group’s annual report, the total number of houses sold in 2018 was around 1700 with an average sale of $346,000.
Prices Are Rising
The median price for homes in the Outer Banks for 2017 was $313,021. This is the highest median home price since 2014.
Homes are Selling Quickly
The number of days an Outer Banks home remains on the market is rapidly decreasing, and demand is steadily increasing. The inventory of houses on the market is the lowest since 2010. With buyer demand high and inventory low, the property value will likely continue to rise in the coming years.
Mortgage Rates are Rising, but Loan Requirements are Relaxing
Mortgage rates are slightly rising as we head into the new year. For a 30-year conventional loan, rates begin this year around 5.125% for a 30-year loan. Although higher rates are not ideal from a home-buying perspective, mortgage lenders have been relaxing loan requirements and offering larger loans for less money down, for qualified buyers.
Is Outer Banks A Good Investment?
It’s a great time to buy a home in the Outer Banks! If you’re considering purchasing an investment property or plan to rent your home during vacation season, buying a home now still provides a great opportunity to receive 70% of the rental income for the year.
What is an investment property on the Outer Banks?
The majority of properties on the Outer Banks, particularly along the oceanfront and in tourism-oriented communities, are second homes or "investment properties" owned by individual owners, families, or groups of investors designated as LLCs.
What is a short sale in the Outer Banks?
A short sale is basically a last ditch attempt by the bank or an owner to unload the property off their hands by offering it at an exceptionally reasonable price for a limited amount of time, and as a result, buyers can secure a property at much less than the property's actual value. The only drawback with a short sale is that many properties come with an "as is" provision, meaning that while home inspections are certainly allowed, the seller won't be conducive to making any repairs.
How many miles of undeveloped seashore are there in the outer banks?
For example, on Hatteras or Ocracoke Islands, it's not unusual to find 4-6 miles of developed areas surrounded by a dozen miles of undeveloped seashore, managed and maintained by the National Park Service.
Do you need flood insurance on the Outer Banks?
Many homes on the Outer Banks, with the exception of properties that are located well above sea level, are located in a flood zone, which means that in addition to the standard homeowner's insurance, prospective buyers will be required to purchase a flood insurance policy as well.
Do condos on the outer banks have trash?
Condo complexes on the Outer Banks generally have an extra community cost for maintenance, trash service, or water service, although prospective buyers will generally find this information stated clearly on the real estate MLS listing.
When is the rental season in the Outer Banks?
The majority of rentals occur in June, July, August and September.
Is a rental agency good?
The rental agency is relatively good at getting renters into your home, but they aren’t much good for anything other than that. The agencies almost never hold tenants responsible for broken items, so if something is destroyed or stolen the owner almost always ends up paying for it.
Can you rent a vacation home in the outer banks?
Owning a Vacation Property in the Outer Banks. Most people think that you can earn enough money in rental income to cover the cost of the mortgage. While this might be the case in warm er vacation spots where you can rent year round, it is certainly not the norm in a place like the Outer Banks of North Carolina.
What does a bank do?
A bank takes in money from people who create checking and savings accounts. It also sells them certificates of deposit and other products. The bank then lends the money from these funds to other people who apply for loans. These loans could be mortgages, business loans, construction loans, or many other projects.
How does a bank make money?
One of the ways a bank makes money is on the difference between how much it pays out in account interest and the interest income on the loans. The interest paid on loans from borrowers must be greater than the interest payments it makes to depositors.
Why are large reserves important?
Large reserves are significant for a healthy bank to maintain profits. It would be bad for shareholders if 4% of their loans were to default instead of the 1% they had thought would. That could wipe out a large portion of the book value and create huge losses for the bank and the investors.
Do banks have to include risks when buying stock?
Banks should include the risks of buying their stocks within share prices. Most of the time, buyers don't know what the banks are doing behind the scenes. This means they assume all of the risks when investing in bank stocks. Interest rates, loan approvals, and default rates are critical factors of bank stock investing.
