Thousands of people who have visited the amazing North Carolina Outer Banks have dreamt of owning investment property there. It’s a prime vacation destination thanks to the beautiful beaches and wonderful culture.
The high traffic of tourists makes Outer Banks real estate a highly attractive prospect. A lot of property owners in the OBX actually choose to rent out their places, allowing them to make some money and own a house next to the ocean shores. Regardless of where you buy a house or land, you’ll never be too far from the beach.
Owning your own vacation house means you’ll get to stay as long as you want as well. If that is not tempting enough, here are three reasons you should invest in Outer Banks real estate.
1. Enjoy Tax Benefits
Owning a house in the OBX means you can maximize your financial flexibility. With vacation property being considered a second home and source of income, you can write off the mortgage on your taxes.
If you generate at least 10% of the buying price through yearly rent, it will only take a few years for the house to pay for itself. But before that every penny you put into it in operation costs is deductible.
Speak to a tax specialist for further advice.
2. It Will Provide Good Returns in Investment
A prime real estate location such as the Outer Banks makes investing in local real estate a no brainer. Because of the high demand for properties in the area, the value of local real estate will continue to rise. This means the rent will also continue to rise and should you choose to sell, you’ll get to enjoy a significant margin of profit.
Before buying, try to research the market to find out which piece of property promises high returns for your purchasing power. The value of houses varies by type and location. The state of the house also matters. While luxurious houses would cost highly, those that need repairs would go for less and after renovation, demand high rent.
3. Steady Cash Flow
After you’ve paid off your mortgage, you’ll have a lifetime of cash flow for you as well as for your children. Homes in closer proximity to the beach will naturally cost you more money but will provide you with higher amounts of income through rent or accommodation fees.
However, you need to keep your expectations realistic. Sometimes, what may seem like a promising investment may be a money pit. For this reason, you need to engage an experienced OBX realtor to discuss rental projections to find out where you can best spend your money.
Investing in Outer Banks Real Estate is Worth Every Single Coin
If you’ve ever heard people who’ve vacationed at Outer Banks say that they would want to live there and not just visit while on vacation, now you know why. There are many vacation homes for sale as well as for rental in almost all towns and communities in the area.
Investing in property is a good way of spending your money but remember to put certain factors into consideration first such as the location and overall state of the property.
