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5 Affordable Ways to Become an Outer Banks Owner
It is easy to pick up a homes magazines, flip through
and see million dollar prices, and then put it back down
thinking that everything out of reach. It is natural to
try to find a way to own a piece of paradise at a bargain
price. In beach real estate as in life, you get what you
pay for. Not everyone needs a 6000 square foot waterfront
mansion, and there are other options out there to fit almost
every budget. Below are more details on several affordable
ways to become an Outer Banks owner.
1. Go West! Generally land values become more affordable
as the distance from the Atlantic increases. An oceanfront
home in the northern beaches may cost 2 to 4 million or
more, but nice homes on the soundside (west side) of the
island may sell for much less. Sound side homes with good
elevation may provide outstanding views. Many owners enjoy
a relaxing stroll through the neighborhood to get to the
beach when they are on vacation.
2. Smaller, older homes sell for less than bigger newer
homes. While a 2 bedroom, 1 bath home may be too small for
your family’s daily needs, spending a week together in closer
quarters may bring everyone closer together…or maybe not.
It may be a better idea to leave some family members at
home the next time you go on vacation or have some rent
a separate house. Either way, consider investing in a “cottage”
rather than a mansion if you are intending to keep costs
down.
3. Find a home with rental income. The Outer Banks is
one of a few places in the world where rental income can
make a big dent in a 6 figure mortgage.
As an example, if you have $200,000 to use as a down
payment, you may be able to find a home with a sales price
of $950,000 that has $45,000 in gross rental income. This
can really offset mortgage payments and annual maintenance
expenses. It will probably not “break even” in the first
year, but it will become a more profitable investment as
the rental income increases and the principle balance decreases.
Ask any current Outer Banks owner about their experience.
4. Consider a condo or a townhouse. The average asking
price for a single family home in Duck and Corolla in the
spring of 2006 was just over $1.3 million. The average asking
price for a condo in the same area was $408,000. The supply
of condos on the northern beaches is limited. You may have
to wait for a unit in some developments to become available
and your options may be limited.
5. Finally, you may want to ponder a partnership. This
type of arrangement may allow you to invest in property
that may otherwise be out of reach. If you decide to form
a partnership with friends or family, be prepared for compromise
and discussions. More than a few homes in this market are
sold to end dysfunctional partnerships. It is important
to choose your partners wisely.
Co-ownerships are a common way to buy into a structured
partnership. If you have seen a $60,000 waterfront property
listed on the Outer Banks MLS, then this is probably a “co-ownership”
property. Each home is owned by 10 separate owners who generally
get to use the property 5 weeks each year on a rotating
basis. Monthly fees may be $300 to $350 per month and cover
some or all of the maintenance on these buildings.
These are just a few ways to become a part of the action
on the Outer Banks. Once you have your foot in the door
and your name listed as an owner in the county courthouse,
is just a matter of time before you trade up into your ideal
beach get-away. Every step of the way will be filled with
memories your family will cherish.
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