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Oceanfront Rewards and Risks
Outer Banks oceanfront property can be a very exciting
and rewarding investment for the right owner. The views
are better; the rents are higher; the risks are greater
and the prices are steeper with oceanfront homes compared
with most other Outer Banks property. Some owners and renters
will only consider oceanfront homes. Some will never consider
oceanfront homes. The choice is yours---and in today’s real
estate market oceanfront buyers have more choices than ever
before. Consider your options carefully.
Oceanfront Rewards
Everything is intensified on the oceanfront–the sound
of crashing waves is louder, the breeze is stronger, and
the smell of salt air lingers longer. No matter the weather,
a day spent watching the waves from a deck chair or a comfortable
sofa will help restore perspective to anyone’s life. This
spiritual renewal is priceless.
Oceanfront owners often enjoy the best views on the island.
Although some oceanfront homes are tucked behind the dunes,
most homes built recently capture as much view as possible
with big windows, top floor living areas, ocean viewing
decks, and in some cases even elevated pools.
Oceanfront owners enjoy higher rents in-season, more
weeks rented, and more demand in all rental markets. Most
visitors come to the Outer Banks to be as close as possible
to the ocean. This trend is not likely to change.
In strong rental markets and in weak rental markets,
oceanfronts are always in more demand. While these homes
have other risks, from a rental income standpoint, oceanfronts
are among the safest real estate investments on the island.
Oceanfront Risks
Beach erosion is the biggest threat to many oceanfront
investment properties. Smart oceanfront buyers familiarize
themselves with how the beach has changed over the years
and minimize their risk.
The North Carolina Division of Coastal Management has
maps that show the historical long-term erosion rates for
different areas of the beach. The Federal Emergency Management
Agency (FEMA) also has information online that an oceanfront
buyer should consider. Other valuable sources of information
include local owners, older surveys of a property and aerial
photographs. All of these information sources provide insights
into the past. What will happen in the future may be difficult
to predict.
Once an estimate of how quickly a stretch of shoreline
is moving, a potential buyer should try to picture how their
property could look in 10, 20, and in 50 years. Beach width,
dune width, and lot size should also be considered carefully.
Some oceanfront owners may feel that flood insurance
will cover losses that may occur. Currently, most flood
insurance policies cover up to $250,000 in damage to a structure.
This is substantially less than the cost to rebuild many
homes. If the home is lost and one is not able to rebuild
on a lot because the lot size is substantially smaller,
this loss in land value is not insurable. It is smart to
have a thorough understanding of an insurance policy’s limitations.
Maintenance costs for oceanfront homes are generally
more than for other island homes. Because oceanfront homes
are exposed to more salt, metal parts such as heat pumps
and door knobs corrode more quickly. Paint does not last
as long, windows do not stay clean for long, and more sand
may get in the pool. Because oceanfront homes get more use,
flooring and interior features may become worn faster as
well.
When looking for oceanfront property, it is important
to weigh your options carefully. For good counsel, find
an experienced REALTOR who is willing to help you understand
the risks and rewards of Outer Banks oceanfront home ownership.
Each property is different and professional assistance is
highly recommended when making this type of investment.
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