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. 

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.

Local Outer Banks vacation rentals for the 2008 summer appear to be up into the double digits for most property managers.  Perhaps due to the increased cost of a plane ticket, Americans are just fueling up and staying on the mainland.  Whatever the cause, it appears that the 2008 rental season will see an increase from 2007.

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.