Outer Banks Property Management

According to the NAR, foreign investment in US property is becoming a growing trend.  From May 2007 to May 2008 the NAR estimated 150,000 to 190,000 homes were sold to foreign investors.  North Carolina did not make a top state according to the NAR.  That is not surprising from what I have seen on the Outer Banks.  I personally have not seen a rash of foreign investment along the island. 

The typical investor would seem to fit the profile for Outer Banks home buyers.  This is from the NAR.  The typical international buyer purchased a single-family vacation home costing $297,400. Four in 10 paid for their U.S. property with cash, compared with 7 percent for all domestic buyers. The typical international owner stayed at his or her U.S. property for 2.6 months during the year. 

The NAR also found that many foreign investors were looking to purchase the more expensive homes in an area.  Sometimes as great as 36 percent more than the same domestic home buyers average.  One aspect of foreign home buyers preference, that for condos and townhomes, may not fit well with the Outer Banks.  Besides this small fact it is shocking we have not seen an increase in foreign investment along the Outer Banks. 

This first appeared in the Coastland Times:

 

SEWER MORATORIUM

The Village at Nags Head Wastewater Treatment and Disposal Facility

 

Carolina Water Service in Dare County cannot accept the discharge of additional waste to The Village at Nags Head Wastewater Treatment and Disposal Facility effective August 19, 2008 due to problems associated with the treatment system.  Therefore, The Village at Nags Head Wastewater Treatment and Disposal Facility is hereby placed on a sewer moratorium at its waste water treatment plant effective August 19, 2008.

 

On the basis of thorough staff review and application of Article 21 of Chapter 143, General Statues of North Carolina, Public Law 92-500 and other lawful standards and regulations, the North Carolina Environmental Management Commission has determined that The Village at Nags Head Wastewater Treatment and Disposal Facility is unable to adequately collect and treat waste tributary to its wastewater treatment facility.

 

North Carolina General Statute 143-215.67(a) directs that no person subject to the provision of NCGS 143-215.1, 143-215.108 or 143-214.109 shall cause or allow the discharge of any wastes to a disposal system in excess of the capacity, which the disposal system cannot adequately treat.  The moratorium on additional sewer connections will remain in effect until Carolina Water Service has rectified the current noncompliant condition of the facility and has obtained written permission from the North Carolina Environmental Management Commission suspending the moratorium.

 

The permit and other information may be inspected during normal office hours at the Division of Water Quality, Central Files, Archdale Building, 512 North Salisbury Street, Raleigh, North Carolina, telephone: (919)733-7015.  Copies of the information on file are available upon request and payment of the costs of reproduction.

 

Questions regarding the status of the sewer moratorium should be directed to Mr. Danny Lassiter, Carolina Water Service at 252-240-1398.

As interest rates are a major factor in most decisions to buy an Outer Banks vacation home, it is traditionally good news to see an interest rate drop.  In todays market an interest rate drop can be cause to celebrate.  For the week ending July 31, 30 year interest rates fell from 6.63 to 6.52 and 15 year from 6.07 to 6.18.  While these drops are minimal, it does help anyone currently in the market for an Outer Banks home.   

The Mid Currituck bridge.  Boom or bust for the Outer Banks?

 

The Mid Currituck bridge proposal has been a polarizing issue along the Outer Banks.  The bridge is becoming more of a reality everyday.  Since the bridge is going to happen, what must be examined is the potential impact the bridge will have on the Northern Outer Banks.  The areas that will be most greatly impacted will be Duck and Corolla and the 4wd beaches.  If you are unfamiliar with the bridge proposal, below you will find some general information.

 

Proposed Mid Currituck bridge Information:

 

Description of Bridge:
New location roadway, including a proposed bridge over the Currituck Sound, from near Coinjock to the Currituck County Outer Banks.

Proposed Length:
Approximately 7 miles

Planned Estimated Costs:
Preliminary cost is estimated between $335 million to $720 million (February 2008 dollars). Final costs will be determined during design.

Free (current) or alternate route:
Existing use is US 158 across the Wright Memorial Bridge.

 

Location’s impact on buying an Outer Banks vacation rental home

We have all heard that famous real estate saying: Location, location, location. It holds very true for those looking for an Outer Banks vacation rental home. If you are like most vacation rental home owners, you will purchase the home to use when it’s not being rented. Depending on how often you rent the home, it can be from a few days to most of the year that is available for your use.

The more time you spend in your home, the more important the location will be to you. Location is definitely the biggest factor determining price. Anything on the water will cost you the most. The ocean will be more expensive than the sound, which is pricier than lake front. For homes not located on the water, generally prices run from East to West. The closer you are to the ocean, the more it’s going to cost.

Location of your vacation rental will also play a large part in how well it will rent. Generally Outer Banks vacation homes fill up from East to West. Oceanfront’s go first, then working westward until you reach homes located west of US-158. This is a pretty broad generalization, as many factors will determine for how much or how often your home will rent. If you are looking to have a home that generates higher rental income and not looking to spend too much time in, definitely consider oceanfront.

The difference in total weeks rented between an oceanfront home and any other location on the island can be staggering. Many travelers, especially in the off-season, only want to stay in a home that offers ocean views. This can generate lots of extra rental income from home owners who attempt to capitalize on it.

If your home is primarily for you to enjoy with the renting of it being primarily to keep the expenses down, you may want to consider homes that are sound front, semi-oceanfront, or located on the east side of US-158. Many of the homes are priced considerably lower than oceanfront, and if needed, can rent well in the off-season.

If you are currently in the market for an Outer Banks vacation rental, it is a great time to buy. Prices are down and rentals are up. If you have any questions about the Outer Banks Rental Market, I would be glad to answer them, Contact.

Following the expected rate cut by the US Federal Reserve, the Dollar slipped against the Euro. I wonder if this signals the start of increased inquiries from European investors and vacationers. Aside from European investors, the Outer Banks is especially attractive to Canadian buyers. I wonder if the Canadian dollars increased value vs the US dollar will trigger many Canadians to consider buying an Outer Banks vacation rental home. Besides being within driving distance for many potential Canadian home buyers, the Outer Banks is also not located far from Norfolk International Airport. It makes it a great opportunity to buy for European or Canadian vacationers who enjoy any of the many outdoor activities which include: parasailing, windsurfing, kiteboarding, surfing, or fishing. Will the increased value of their money bring more to become Outer Banks home owners?

If I was a foreign investor, I would definitely be taking notice at some of the great opportunities offered in the US right now. Over last count, there were over 5,000 homes on the Outer Banks MLS. Within those 5,000 homes, many great deals definitely can be found. Normally, when the amount of foreclosures and REO’s are increasing, those with available capital can find great buys.

As time passes, we shall see if US resort areas, especially the Outer Banks, are filled with foreign investors. Hiring a good Outer Banks property manager can go a long way for those investors worried about being absentee home owners.