The past four years have been a roller coaster ride to say the least. Some of the things we have experienced include:
§ The covid wave, with many people permanently moving here to work remotely.
§ The rise of AirBandB, which created a shortage of available housing for seasonal workers.
§ Extreme drop in residential inventory creating an imbalance between supply and demand.
§ Unprecedented growth in property values, with some areas experiencing a 105% increase in median sales price.
At present, we are beginning to see some reduction in market pressures mainly due to the rapid rise in mortgage interest rates, which recently topped 8% for the first time since the year 2000. The higher borrowing rates have reduced mortgage applications to the lowest level seen since 1995. Even with this downward pressure, there is light at the end of the tunnel. Our inventory remains low and there is still considerable demand. The saving grace for sellers is cash buyers. Over 51% of September sales in the Northern beaches have been cash purchases. This includes the Corolla, Duck & Southern Shores markets. Prices have held steady; however, we have seen an uptick in price reductions in recent weeks.
Globally, we are experiencing tremendous uncertainty in financial markets as well as geopolitical unrest. Four of the five US regions have already experienced Year-Over-Year sales declines. These factors could lead the OBX housing industry in the wrong direction. It is a difficult thing to accurately forecast, but I have been an active OBX broker and investor since 2000 and have lived through numerous market fluctuations.
While we are predominately a residential market, the US commercial market trends can be a bellwether in forecasting the overall real estate market. The Mortgage Bankers Association (MBA) has forecast Commercial lending to fall 46% this year and the overall transaction volume expected to fall 65%. Personally, I believe this will be a significant drag on all housing metrics, across the board.
Most of you are probably very happy with your OBX home and have a very low interest rate on your mortgage. It gives me great pleasure in knowing that I might have helped you achieve that goal. That is always my aim. However, I also realize people’s goals change whether it be a change in personal situations or simply investment objectives.
Should you want to sell your OBX investment, there is still an attractive window to accomplish this goal. As previously mentioned, our overall inventory remains low indicating we are still in a seller’s market. The overall Days on Market (DOM) for the Northern Beaches remains relatively low. The average DOM in 2023 is 64 days, however that is up from an average of 31 days in 2022. There is no question that the exponential rise in interest rates will put the brakes on our market, but cash is still king. When there is uncertainty in the financial markets, like stocks and other securities, investors tend to look to reallocate to more tangible assets, like real estate and precious metals. We are definitely seeing investors move wealth into our market in the form of cash. In September 2023, OBX cash transactions in residential real estate totals were over 53 million dollars.
What does all this mean?
I am a student of data and try to offer sound guidance based on the market analytics and reading the tea leaves. Based on the data, I believe we are in the midst of a unique period that still offers sellers necessary market advantages. If you decide selling helps you achieve your investment goals, there is still time and can be done with the right marketing, pricing and exposure. With 23 years of experience, I can help you take advantage of this moment of history.
If you are curious as to your current property value, please scan the QR code with your phone to be taken to my Instant Property Valuation tool. It is also a great way to keep track of property value trends. In other words, check it often to follow which way your property value has changed. This tool can also be found on my website.
Those that know me, can attest that I am not a “hard sell” guy nor am I one that would try to create panic selling. I simply offer guidance based on experience, data and always striving to help my clients make sound investment decisions. That is my goal here. If you would like to discuss your situation in more detail, I welcome the opportunity and would be happy to jump on a call at your convenience. I look forward to speaking with you.
If you are new to the world of Outer Banks Investment Property, we have written a short overview that you may find useful. You can see that HERE
Stats through September 2023
Interested in the value of your home?
Click HERE for our INSTANT VALUATION Module
(this can be used for any property in the US)
“Seas the Day” and seize the opportunity to own this classic 15 bedroom, 10,000 s.f. home! This sleek and stylish investment will make you and your guests happy while on ...
Listing courtesy of Carolina Designs Realty.
Four levels and over 10,000 s.f. of carefully designed living space make this home stand out! With 15 bedrooms, plus a bunk suite, nursery, office, media room, theater, g...
Listing courtesy of Carolina Designs Realty.
Newly constructed luxury oceanfront estate like you've never seen! 12% estimated rental projection! This 12-bedroom retreat sits on an oversized oceanfront parcel in Sect...
Listing courtesy of Twiddy And Company - Corolla.
Absolutely amazing 12 bedroom Oceanfront estate available for purchase. Turnkey investment at the perfect time of year to capitalize on the rental season. Currently rent...
Listing courtesy of Outer Banks Realty Group.
Oceanfront custom built home in the sought after Whalehead Club. This builder had a design in mind to maximize space while creating a resort-like atmosphere. Owners and ...
Listing courtesy of A Better Way Realty, Inc.
This is the one you’ve been waiting for! Beautiful new construction, turn-key, fantastic rentals, views for days, and so much more with this drop-dead gorgeous Corolla oc...
Listing courtesy of Landmark Sotheby's International Realty.
Virtual tour interior: https://www.vizsourcevr.com/virtual360/194053702710/ Virtual tour exterior: https://www.vizsourcevr.com/virtual360/191166980166/ The Oaks on Hun...
Listing courtesy of Island Crest Obx Realty.
ASSUMABLE 4% MORTGAGE OPTION!!!! This opportunity can not be beaten in today's financing environment. Exceptional oceanfront estate situated on half an acre with over 1...
Listing courtesy of Brindley Beach Vacations-Duck.
RARE OPPORTUNITY FOR 4.7 ACS AT A STOPLIGHT ON THE BYPASS. A vacant commercial site of this size is very very unusual on the Outer Banks. Centrally located across from J...
Listing courtesy of Harrell & Associates.
Welcome to 64 Ocean Boulevard where you’ll be met with the best in luxury class beach living. This contemporary, three-level oceanfront home in Southern Shores is simply...
Listing courtesy of Keller Williams - Outer Banks.
Gorgeous and exceptionally well-maintained six-bedroom home on the oceanfront in the heart of Whalehead. Owned by the same loving family since built in 2001, this propert...
Listing courtesy of Twiddy And Company - Corolla.
Spacious and luxurious oceanfront home perfect for an extended family or large group. Attractive investment property; Owner uses the home several weeks, add those weeks ...
Listing courtesy of Outer Banks Realty Group.
10 Bedroom oceanfront rental machine with elevator, theatre room, hot tub and private pool. Fabulous great room overlooking a beautiful beach, 125 foot wide homesite in ...
Listing courtesy of Twiddy And Co. - Duck.
Perched on a nice and high Oceanfront Dune for dynamite Ocean Views, this outstanding Nine Bedroom Oceanfront Beach Home, is loaded for fun gatherings ! Enjoy Ocean & Sur...
Listing courtesy of Sun Realty - Corolla.
A well-maintained 8-bedroom oceanfront home that offers a luxurious and spacious living space with direct access to the ocean. breathtaking views of the ocean, providing...
Listing courtesy of Outer Banks Realty Group.
This Pine Island oceanfront home is truly stunning! Completely remodeled and upgraded in last few years. This home features breathtaking water views of ocean and sound ...
Listing courtesy of Beach Realty & Construction - Duck.
Sprawled across a huge, elevated lot in the coveted Southern Shores community, this Deltec-constructed home is quite simply, jaw-dropping. The Outer Banks has nothing com...
Listing courtesy of Keller Williams - Outer Banks.
Sweeping views of the Atlantic await you from this ideal investment or 2nd home opportunity! You will delight in the bright, open, great room with panoramic views from n...
Listing courtesy of Brindley Beach Vacations-Duck.
Rare opportunity to own a thriving business and living quarters in Downtown Duck! Centrally located with high traffic! Well-established, turn-key, successful business w...
Listing courtesy of Brindley Beach Vacations-Duck.
This Ocean side colorful gem is sweet and salty and aptly named “Sugarpops”. The third masterpiece was brought to life by the GormanLove family and builder Allen Hutton, ...
Listing courtesy of Outer Banks Blue Realty Srvcs..
Nestled on the pristine 4x4 beaches just north of Corolla, this stunning oceanfront oasis offers a year-round haven of relaxation, adventure, and a heavenly setting for m...
Listing courtesy of Twiddy And Co. - Duck.
Introducing "Southern Flair," a nine bedroom, semi-oceanfront coastal retreat centrally located in the Whalehead community of Corolla. Just steps to the beach, this home ...
Listing courtesy of Twiddy And Company - Corolla.
Step into unparalleled luxury with this recently renovated oceanfront masterpiece in the prestigious town of Duck. Outstanding investment opportunity with over $260,000 i...
Listing courtesy of Brindley Beach Vacations-Duck.
Stunning 10 bedroom estate situated on a spacious semi-oceanfront parcel, just steps to the beach in the heart of the Whalehead Community of Corolla. Boasting panoramic v...
Listing courtesy of Twiddy And Company - Corolla.
Turnkey restaurant in the heart of Kitty Hawk, located near the intersection of Kitty Hawk Rd. and North Croatan Hwy. This is a prime location and great business opportun...
Listing courtesy of Hall & Nixon Real Estate Inc.
Existing Structural Improvements to the Land would need to be removed from the Site to have a Vacant Lot. Subject Property also Listed For Sale as MLS# 123730, a functio...
Listing courtesy of Sun Realty - Corolla.
Charming for Sure ! One of the Corolla Original Beach Homes with an innovative architectural design. All will enjoy the Living Areas on the first level for easy living! ...
Listing courtesy of Sun Realty - Corolla.
Nestled in the picturesque Whalehead community, this exquisite 10-bedroom home, completed in 2020, offers a harmonious blend of luxury and coastal living. Step inside and...
Listing courtesy of Landmark Sotheby's International Realty.
Approximately five acres of commercial property adjacent and west of the new 7 Eleven at the corner of US 158 and Woods Road with access from US 158 already in place with...
Listing courtesy of Village Realty Holdings, Llc - Nh.
Huge price reduction, motivated sellers with great rental numbers! Welcome to “Sunlight,” your dream coastal retreat in the popular Whalehead Community of Corolla. This ...
Listing courtesy of Twiddy And Company - Corolla.
This magnificent oceanfront retreat offers stunning ocean views at every turn. With 7 spacious bedrooms, 6 bathrooms, and 2 half baths, this residence provides ample spac...
Listing courtesy of Keller Williams - Outer Banks.
"PRETTY MAMA" OCEANFRONT W/ FABULOUS OCEAN VIEWS! *** ELEVATOR & HEATED POOL ... and HUGE GAME ROOM W/ MINI KITCHEN! *** EXCELLENT RENTAL INVESTMENT INCOME PRODUCER ... 2...
Listing courtesy of Coldwell Banker Seaside Realty Kh.
$50K for 2024 already booked! Must see Nags Head Ocean Front with Solid Rental History and high ROI. Boasting tons of upgrades and updates. Roof (2019), newer A/C unit, n...
Listing courtesy of Coldwell Banker Seaside Realty Kh.
Just for the sun of it has it all! This spacious 6 Bedroom 5 full baths, 2 half baths is located on the Ocean Front in the heart of South Nags Head. Wonderful panoramic ...
Listing courtesy of Joe Lamb Realty.
"Orchid Isle" is a premier TIER 1 OCEANFRONT 6bed/5.5bath FULLY-FURNISHED active rental w/PRIVATE OCEANSIDE POOL in BEAUTIFUL BUCK ISLAND! A grand home in a grand locatio...
Listing courtesy of Shore Realty.
Sandcastle is an absolute beauty with so many recent updates! Incredible unobstructed views of the Atlantic from most rooms will take your breath away. Every detail has b...
Listing courtesy of Brindley Beach Vacations-Duck.
“So Good” is SO accurate!! This 6 bedroom/5.5 bathroom features 4 Kings (3 are Masters), 2 Twins and 2 Pyramid Bunks (fun AND functional!). Ground floor offers an INCRE...
Listing courtesy of Beach Realty & Construction - Kh North.
If you are looking for a well maintained Nags Head Ocean Front, look no further! Trying to find a high returning, low maintenance investment property, here ya go! The sel...
Listing courtesy of Coldwell Banker Seaside Realty Kh.
Fabulous chance to own the Oceanfront Beach House of your Dreams in the immensely popular area of South Nags Head. With 2024 rents already up to $118K & projections show...
Listing courtesy of Keller Williams - Outer Banks.
This indeed is a very rare opportunity for you to own in the unpainted aristocracy of Cottage Row in Nags Head. Listed on the National Register of Historic Places in the ...
Listing courtesy of Keller Williams - Outer Banks.
Just steps away from the beautiful sandy beaches of Kitty Hawk NC, this Semi-Oceanfront Kitty Hawk Cottage with breathtaking Ocean Views is an important part of Outer Ban...
Listing courtesy of Four Seasons Realty.
Oceanfront with Swimming Pool and Elevator. More pictures can be found at https://www.brindleybeach.com/outer-banks-vacation-rentals/ol50-cutty-sark.
Listing courtesy of Kbe Associates.
Enjoy coastal living at its finest with unobstructed water views over the Currituck Sound in this well appointed and ultra private Sanderling home. This stunning custom ...
Listing courtesy of Coldwell Banker Seaside Realty Kh.
Sensational soundfront with bulkhead and dock. This property includes two lots and fantastic views of the sunsets. Original owners who have lovingly cared for this second...
Listing courtesy of Howard Hanna Outer Banks Realty.
128 Skimmer Way, Duck- Welcome to your dream oceanfront retreat at 128 Skimmer Way in the community of Sanderling. Located in the heart of Duck, NC, this stunning 5-bedro...
Listing courtesy of Obx Realty Group, Llc.
Custom-built with the intention of hosting large groups of friends and family, "My Blue Heaven" boasts a spacious layout, ample home amenity package, and desired location...
Listing courtesy of Twiddy And Company - Corolla.
Rare opportunity in Duck! This well-established restaurant sits right on Duck Rd and sees tremendous foot traffic. The almost half acre of land is creatively used with a...
Listing courtesy of Century 21 Nachman Realty.
This Custom Built Home has top of the line everything from the construction to the professional finishes throughout the entire home. Currently used as a primary residence...
Listing courtesy of Carolina Designs Realty.
Breathtaking Views from the moment you enter the house! This beautiful custom built and custom renovated soundfront home is looking for the next owner to love and cherish...
Listing courtesy of Southern Shores Realty.
This 6 bedroom 6 1/2 bath Home in the heart of Duck is only 500 yard from the beach access and has an established rental income track record. Guests love this well appoi...
Listing courtesy of Southern Shores Realty.
JUST REDUCED! TWO SOUNDFRONT 3BR, 2BA CONDOS. BUY NOW! KEEP ONE AND SELL THE OTHER, LIVE IN ONE AND RENT THE OTHER, RENT BOTH... MANY POSSIBILITIES! Sellers will only...
Listing courtesy of Keller Williams - Outer Banks.
EXQUISITE "LUXURY" BEACH LIVING. This "WELL MAINTAINED" stunning home is topped off with the most magnificent Sunrise views of the Atlantic Ocean and Sunset views over th...
Listing courtesy of Howard Hanna William E. Wood - Currituck.
Welcome to this Sound Front beauty! Built in 2015 by renowned OBX custom builder Dave Stormont, this beautiful 5-bedroom retreat is located in the heart of Corolla Light,...
Listing courtesy of Century 21 Nachman Realty.
Corolla Oceanfront! Panoramic ocean views from the top level! Large protective dune and a wide sandy beach! This beautiful 6 bedroom and 4 bath home, is conveniently s...
Listing courtesy of Landmark Sotheby's International Realty.
Stunning, prestigious Pine Island 8-bedroom, 7-full and 2-half bath home is a coastal dream located just steps away from the beach. As you waltz inside, you'll be greeted...
Listing courtesy of Landmark Sotheby's International Realty.
Introducing 45 Ocean Boulevard, a coastal retreat nestled in the heart of Southern Shores, NC. Offering an unparalleled seaside lifestyle, perfect for those seeking tranq...
Listing courtesy of Keller Williams - Outer Banks.
Welcome to 413 Myrtle Pond Road, located in the prestigious community of Pine Island in Corolla, NC. Appropriately named "Sea Gem", the home rests in a beautiful, private...
Listing courtesy of Keller Williams - Outer Banks.
Located within the Village of Nags Head, this expansive semi-oceanfront vacation rental home boasts more than 3,700 sqft of living space, encompassing 8 bedrooms, 7 full ...
Listing courtesy of Keller Williams - Outer Banks.
This beautiful, Pine Island home with Ocean View features 6BR, 5BA, 2 half baths. Just a Short Walk to Beach, Community Pool, Tennis, Basketball and Playground. Top flo...
Listing courtesy of Keller Williams - Outer Banks.
Welcome to Sea Forever! This beautiful oceanfront home located in the 4-wheel drive beaches of Corolla is located 8 miles from the paved roads making this a prime locatio...
Listing courtesy of Twiddy And Company - Corolla.
Always wanted to live on a golf course AND have panoramic Ocean AND golf course views? Pack your clubs, 303 Grissom Street in Kitty Hawk is the home for you. This 4,877sf...
Listing courtesy of Stan White Realty And Const-Duck.
Vintage oceanfront property located on quiet cul-de-sac. 22490 square foot lot with 105 feet of ocean frontage creating many possibilities. Top floor consists of kitchen,...
Listing courtesy of Century 21 Nachman Realty.
Experience coastal living at its finest in this remarkable soundfront home in Duck, North Carolina. Boasting 6 bedrooms, 5 1/2 baths and breathtaking sunsets, this proper...
Listing courtesy of Landmark Sotheby's International Realty.
This stunning five-bedroom, four full, and one-half-bathroom waterfront property is a true gem, flawlessly integrating breathtaking sound views and masterful construction...
Listing courtesy of Landmark Sotheby's International Realty.
A chance to own a custom built home steps away from the beach in the charming town of Duck! This one-owner home was lovingly designed, built, and cared for as a second h...
Listing courtesy of Great Escapes Vacations & Sales.
100 Raptor Point is a property of epic stature, unmatched in land size and water frontage on the Outer Banks of NC. As you meander through several hundred feet of gravel ...
Listing courtesy of Outer Banks Blue Realty Srvcs..
Large 6 bedroom, 5.5 bath custom-built home located on the sound front and the 8th hole in the gated, golf community of The Currituck Club. This well built and maintaine...
Listing courtesy of Beach Realty & Construction - Kh North.
Enjoy the Outer Banks in this Semi-Oceanfront Beauty! This custom built home offers unobstructed panoramic ocean views! Located in Carova Beach, where the ''Wild Horses R...
Listing courtesy of Coastal Shores Realty Group.
It's a "Beach Par Tee" in the comfort of this 8 bedroom retreat situated on a corner lot in the private gated Currituck Club Resort Community of Corolla, NC! Perched on t...
Listing courtesy of Twiddy And Company - Corolla.
Welcome home to The Duck Social perfectly situated in the heart of Duck in the gated community of Four Seasons. Enjoy a quick walk to the beach or to downtown Duck to enj...
Listing courtesy of Rog Obx, Inc.
Stretch out in this spacious recently renovated home . Its like new inside and out. There is something for everyone to enjoy. Two Dishwashers, Wet Bar, Ice Maker, Drawer ...
Listing courtesy of Beach Realty & Construction - Kh North.
NEW CONSTRUCTION in the OBX!! Personally built by owner of the company, J&T Construction, nestled in the gated Currituck Club among Tall Pines and Live Oaks with Spa...
Listing courtesy of Brindley Beach Vacations & Sales - Kh.
This Row 4 COROLLA LIGHT oceanside stunner has PANORAMIC OCEAN VIEW larger than from many semi-oceanfront homes! And lighthouse lovers will adore the grand view of the hi...
Listing courtesy of Shore Realty.
670 Hunt Club Dr, Corolla-This stunning 7bd/7bth plus 2 half bath home for sale in the Currituck Club is located on one of the highest elevations in Corolla. Amazing ocea...
Listing courtesy of Obx Realty Group, Llc.
Spectacular Currituck Sound Views and Gorgeous Sunsets from Every Room! Plus Views of the fairway at the #16 hole from Every Room! This Beautiful Updated Spacious 5 bedr...
Listing courtesy of Corolla Beach Realty.
If you're looking for the perfect home with spectacular sunrises and sunsets then this 5 bedroom and 5 1/2 bath home is the right choice for you. Located across the stree...
Listing courtesy of Sun Realty - Kdh.
Introducing "Lemonade Stand" - an exceptional investment opportunity that combines panoramic ocean views with the convenience of a direct 100' access to the beach. This m...
Listing courtesy of Coldwell Banker Seaside Realty - Kdh.
This privately owned sound side property is a 6-bedroom, 6.5-bath retreat nestled in Corolla Light, an amenity-rich ocean-to-sound community. What sets this home apart ar...
Listing courtesy of Keller Williams - Outer Banks.
The most spectacular views await you at this 6 bedroom, 6.5 bath waterfront home in the Corolla Light community. Immaculately maintained and used solely as a second home,...
Listing courtesy of Keller Williams - Outer Banks.
INVESTMENT OPPORTUNITY!! Discover the allure of this exceptional property featuring two distinct 4-bedroom residences accompanied by versatile commercial space in the co...
Listing courtesy of Exp Realty, Llc - Coastal.
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Listing courtesy of Brindley Beach Vacations & Sales-Corolla.
Discover coastal elegance and endless comfort in this exquisite 5-bedroom, 4.5-bathroom home located in the charming town of Duck. Ideally situated just a short stroll fr...
Listing courtesy of Midgett Realty - Rodanthe.
Why not live at OBX in the Currituck Club/VIP style? The best the beach has to offer! A Gated Community w/ beach valet and trolley service. A summer full of fun activitie...
Listing courtesy of Howard Hanna Outer Banks Realty.
Rush-Slowly is a delightful retreat with awe-inspiring, unobstructed ocean views. This 4 bedrooms, 5 1/2 baths oceanfront beach-house features multitudes of indoor and ou...
Listing courtesy of Sun Realty - Kdh.
Rare opportunity: A 50' premium oceanfront lot in the heart of old Nags Head. Deep lot is protected by large dunes covered with vegetation and a beautiful wide sandy bea...
Listing courtesy of Howard Hanna Outer Banks Realty.
You must see this large 6 bedroom 5.5 bath, semi-oceanfront home. The ample decking provides pretty ocean views while the interior offers space for the whole family. Leve...
Listing courtesy of Keller Williams - Outer Banks.
This is your great investment with a stable dune. 4 bedroom, 2 bath. Immaculate Kitty Hawk oceanfront with breathtaking views! Meticulously maintained! Everything has bee...
Listing courtesy of Brindley Beach Vacations & Sales-Corolla.
SOUNDFRONT DREAM HOME! You’ll see never-ending SOUND and SUNSET VIEWS from this beautifully designed and FULLY FURNISHED unique home in COROLLA. This Monteray Shores hous...
Listing courtesy of Saga Realty And Construction.
Newer construction, built in 2018. Ocean & Sound Views. Location, Location, Location. All rooms have beautiful views of ocean or sound. 2 min walk to restaurants, market,...
Listing courtesy of Obhoa, Llc.
Rare opportunity!...Act quickly on this to be built brand new construction 2024 custom home built by Lenz Homes! Located in a prime location just two blocks to the Mama ...
Listing courtesy of Outer Banks Blue Realty Srvcs..
Breathtaking Sound & Golf Course View*Watch the Golfers Tee off at #11* Never a rental* Impecablely Maintained with Beautiful Furniture* 5BR 5.5 BA with 4 Ensuites* Ele...
Listing courtesy of Outer Banks Realty Group.
OCEANFRONT "2" UNIT CONDO DUPLEX - THIS IS THE NORTH UNIT B THAT IS FOR SALE ... ACROSS FROM JOCKEY'S RIDGE & SITUATED ON PRIME UNCROWDED SECTION OF THE BEACH ... THIS IS...
Listing courtesy of Coldwell Banker Seaside Realty Kh.
Breathtaking water views and majestic sunset vistas will steal your heart in the seaside town of DUCK! With its high elevation this truly turn-key beauty showcases an ext...
Listing courtesy of Coldwell Banker Seaside Realty - Kdh.
Welcome to 876 Drifting Sands Drive, where the beauty of coastal living meets the tranquility of Soundfront serenity. This luxurious home offers a generous heated living ...
Listing courtesy of Colony Realty Corp - Frisco.
From the moment you enter, you know you are at the BEACH! You definitely have to see to believe all the attention to detail. Soft tranquil walls and accessories wrap you...
Listing courtesy of Bhhs Rw Towne Realty - Moyock.
Be the first to see this Spectacular Waterfront Custom Built Craftsman Style home in the sought after Chicahauk Subdivision of Southern Shores. This home includes impress...
Listing courtesy of Beach Realty & Construction - Kh North.
Nestled among the Trees. Starting at the Ground Floor this 6 bedroom (with a bonus room with double bunks) is a Private Oasis, but still only a 4 min walk to the beach! R...
Listing courtesy of Watersedge Realty.
"Jennette's Cottages" Was fully approved in 2018 as a Cottage Court consisting of 6 houses, 24 bedrooms with pool at Whalebone Junction, located directly across the stree...
Listing courtesy of Village Realty Holdings, Llc - Nh.
Be sure to check out this quaint and private cottage located in charming Corolla Village! This home is only a short stroll to the beach and local destinations like the li...
Listing courtesy of Coast Realty.
Resting amid beautiful oaks and natural landscaping you will be lured into a beautifully designed curated home either as a primary residence, second home, or as an excell...
Listing courtesy of Coldwell Banker Seaside Realty Kh.
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Investment Home Primer
For those new to the OBX market, here is a quick overview:
Rental income is largely determined by your distance to the ocean. An oceanfront property will always rent better than one that is 3-4 rows back. They get a higher rental rate and typically rent for more weeks out of the year. A newer oceanfront home can rent for 24 weeks of the year, whereas a house that is 3-4 rows back may only rent for 16-18 weeks. With most investment properties, the strength of the investment is based on the cash flow (money in vs. money out). The way to analyze this is GRY (Gross Rental Yield). This is calculated by dividing the gross income by the purchase price. An example would be: If a home has a gross income of $85,000 and cost $1,000,000 the GRY = 8.5%. A general rule of thumb in our market is if the home produces a GRY of 8% or above, it should cover most all of the expenses, including mortgage.
Expenses can range from utilities, taxes, mortgage, property management, insurance, HOA fees & maintenance. These will vary depending on many things: An oceanfront home will have higher insurance rates. Some homes have very low HOA fees and others are quite high. A newer home will have fewer maintenance issues vs. an older home, etc
HOA fees will largely be determined by the services and amenities provided. Some subdivisions will offer swimming pools & tennis courts but the HOA fee will be higher to pay for these things. Other subdivisions may not offer an expansive list of amenities, thus the HOA fee is low.
Most of the OBX is on private septic systems, however there are subdivisions with sewer systems. Areas with septic will usually be platted on larger lots since the septic area takes up space. If a subdivision is set up on a sewer system, the lots may be very small. That means the houses could be much closer to each other. The HOA would also have to charge a fee for the sewer system usage.
Property management is big business here. There are many rental companies on the beach. The owner chooses who they want to use based on performance, rates, and services provided. The rate can range from 14% to 20% of gross rents depending on the services you want them to provide. You can either have them take care of everything (bookings, pool service, weekly cleanings, linens, landscaping, filter changes, etc) and that rate may be 18-20%. However, if you hire your own pool company and you do the landscaping yourself, that rate would be reduced. In NC, if the home is in a rental program, the new owner has to honor all weeks booked for at least 180 days from closing. That way a new owner can't simply cancel everyone's reservation.
All rental money is prorated to the day of closing. That means if you bought a house and closed on May 1st, you would own all the money from any week booked after May 1st. The seller would keep any money from the weeks occurring prior to May 1st.
This is an amenity driven market. The more amenities a house can offer will make it more attractive to potential renters. Swimming pools, hot tubs, gamerooms, views, theater rooms, etc are what renters desire and these amenities will increase your bottom line. Most of these homes are sold fully furnished, so you get most everything in the home included in the purchase price.
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