If you have ever spent any time on the Outer Banks in North Carolina, you know what a special place it is. Year, millions of people flock to the area for its great tourist and historic sites, natural wonders and beaches. Beach vacations rank among the most popular in the country. Scientists have even proven that beach vacations are good for the brain, which does not have to work as hard (beaches are familiar to most of us so the brain rests more). If you have always wanted to own a vacation property, realtors say the Outer Banks is a great location for it.
Here are some tips from realtors about buying rental property on the Outer Banks:
- Be as objective as you can be. When you are starting the planning and decision making process, you need to do whatever you can to be as objective as possible. Leave your emotion someplace else. Do your research into the vacation real estate market and what it is like to own such a property. Vacation rentals are big business for the area and you should approach it as such. Remember that while you are buying residential property, this is a business investment.
- Get your own agent. There are a lot of realtors who handle property on the Outer Banks, you want one who can help you learn about the market and will work for your best interests. You need to hire someone to help you through the process and guide you.
- Try to get your financing in advance. If you can work out your mortgage arrangements in advance, you will be in a better position when it comes to buying a vacation property. This is also will put you in a better position in terms of knowing what your exact budget is and what you can afford. This will end up saving you time as you do not have to look at properties that you know you cannot afford. The area realtors and vacation home sellers will also see how serious you are about making a purchase if you have a mortgage lined up.
- Check out the area by renting a few vacation properties. One of the best parts of owning a vacation rental property on the Outer Banks is that you will be able to enjoy it when you are not renting it out. One thing you should do before you purchase anything is spend some time in the area as a renter. If you check out a few different kinds of properties, you will get a better sense of what you like and you do not like. What do you like and not like about the different properties that you rent? Think about that when you talk to realtors about buying properties.
- Try to be realistic. When you are looking at the income projections for the different properties, be realistic about what you can expect to make with the vacation home. Even beach properties take a lot of work and are not what anyone would consider to be easy money. If you have hired a realtor to be your agent, they can help give you a realistic sense of what you can make.
- Remember, there are a lot of costs involved in owning a vacation property. Just like your home, the costs of buying it go beyond the down payment and your mortgage. You have to pay to keep the place up, repair and update the property and furnish it. Because you will be renting out the property, your insurance costs will be higher than at your residence. You should talk to your accountant about the tax implications of owning a vacation home. Anyone who owns any kind of property on the Outer Banks needs to get flood and wind insurance.
- Be prepared to do a lot of work. Owning a vacation home on the Outer Banks takes a lot of dedication and work. Just be ready for that.
Summer vacations are very popular in the United States. Every year, families from across the country opt for vacations at the beach. There are a number of reasons families are also looking to rent vacation properties rather than staying in hotels.