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COROLLA TO NAGS HEAD TO COLUMBIA SUMMER 2019 VROBX.COM
Buying second home or investment property?
Buying a second home or an
investment property on the OBX?
Is it time for a little getaway? Need
some sand between your toes or sh
tacos in your belly? Maybe you’re
looking for a new, exciting way to
invest for your future? If either of
those apply to
you, keep reading
because you can
have both!
Occasionally
buyers purchase
their beach home
with the intention
of using it as either
a second home or
as an investment
property, and
many times on
the Outer Banks,
it’s both. While
the process for
purchasing a
second home
or a home to use as an investment
property is similar, there are a few
key dierences and some benets that
make these kinds of purchases unique.
In this article, I will explain the
similarities, the dierences, and how
each may benet you.
Second home vs. investment home:
how are they similar?
e main similarity between second
homes and investment homes is that
neither can be listed as your primary
residence. Both also may come with
certain tax benets. ese benets
include mortgage interest
being used as a tax
deduction in the case
of second home loans,
and the cost to upkeep
the property is usually
considered a tax write-o.
How are they different?
If you’re thinking of
purchasing a second
home, it’s usually with
the intention of using the
property as a vacation
home or another
place where you can
comfortably spend a good
portion of your time. at
is all well and good, but
you should know that most lenders
will only consider a property a second
home if it is at least y miles from
your primary residence. For example,
if you’re making a thirty-minute
commute every week and want to buy
a second home closer to your place of
employment, you
NAGS HEAD
877.482.4242
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REAL ESTATE SALES
NagsHead@vrobx.com
ASSOCIATION MANAGEMENT
EmilyL@vrobx.com
COROLLA
877.513.9053
VACATION RENTALS
Rentals@vrobx.com
REAL ESTATE SALES
CorollaS@vrobx.com
COLUMBIA
877.796.5263
REAL ESTATE SALES & LONG-TERM RENTALS
ColumbiaSales@vrobx.com
affiliated with
Ocracoke Island realty
877.218.9986
VACATION RENTALS
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REAL ESTATE SALES
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Key dierences and benets
1993-2018
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Side-by-side, mirror-image ocean-
front investment properties, sold
individually or together
Buying second home or investment property?
will not be able to purchase a second
home in that location. Additionally,
you can only own one second home
in any given area. If you purchase two
homes close to another and try to claim
both as a second home, you may be
told to consider one of the homes as an
investment property.
Investment properties, however, are not
meant to be used as residences by the
buyer; this means you will not be able to
stay for any great length of time in the
investment property for as long as it’s
nanced as such. Unlike second homes,
there is no requirement concerning a
minimum distance from your primary
residence. Investment properties may
be either a residential rental property,
a commercial property, or a property
purchased with the intention to “ip”
once the designated time requirement
between sales has been met.
The benefits: second home
e immediate benet for purchasing
a second home in a location you visit
frequently is no more hotel reservations!
Instead, you get to build equity into a
home that you own. Also, nancing
for a second home is usually a bit more
lenient as second home mortgages are
viewed as lower risk, thus resulting in a
more competitive mortgage rate.
The benefits: investment property
Investment properties may be used
by their buyer infrequently; in fact,
they are designed to be rented out, and
this can be a benet to you as a buyer.
Because rent for an investment property
is paid monthly, it serves as a consistent
form of income, especially if the rental
payment is higher than the monthly
mortgage payment. If done correctly,
investment properties may yield a
better return than some CDs or savings
accounts. If you decide to use a property
management company to manage
renting the investment home, you may
be able to write it o when you le your
taxes; this might also be true of certain
other property-related expenses.
ere is much more that goes into
buying investment and second homes
here on North Carolina’s Outer Banks.
As a preferred local lender, Southern
Trust Mortgage is your go-to resource
for the information you need to make
an informed decision about your
purchase. Contact me today and I’ll
make your beach home purchase an
easy and stress-free experience.
Guest writer:
Tate Felts
Loan Ocer | NMLS#117311
Oce 252-389-9427
Mobile 252-207-8283
Toll Free 1-800-748-2147
tfelts@southerntrust.com
2600 N. Croatan Highway, Suite 100
Kill Devil Hills, NC 27948
www.southerntrust.com/tate-felts
• Residential units sold: 1118, +5%
change over Q2 2018
• Residential sales volume: $446.6M,
+2%
• Residential average days on market:
114, down 15 days
• Residential average sales price:
$399,400, –3%
• Vacant land units sold: 125, –15%
• Vacant land sales volume: $23M, –34%
• Vacant land average days on market:
212 days, up 29 days
• Vacant land average sale price:
$107,000, –22%
Data obtained from OBAR MLS through July 2019
Outer Banks real estate market update
2019 2
nd
Quarter Residential Unit Sales by Town
Area Units Sold Change over Q2 2018:
Corolla 126 + 3%
Duck 70 +27%
Southern Shores 46 + 7%
Kitty Hawk 57 Even
Kill Devil Hills 146 – 5%
Nags Head 87 –18%
Roanoke Island 58 +16%
Hatteras Island 125 Even
Just a Sampling of Our Listings for Sale
Nags Head Oceanfront Co-Ownership
Best priced oceanfront co-ownership! Own 5
weeks, remodeled kitchen, tastefully decorated
4 BR, 3 BA • $50,000 • MLS 104934
The Currituck Club
Semi-soundfront, landscaped corner lot,
beautifully decorated, pool, rental ready
7 BR, 5.5 BA • $595,000 • MLS 105561
Nags Head Oceanfront
Ocean & sound views, near Jennette’s Pier, well
appointed, game room, pool, amazing income
7 BR, 6 BA • $1,299,000 • MLS 104165
Duck, Portside Soundfront Condo
Soundfront, stunning views, beautifully main-
tained, ocean/sound access, pool, tennis court
2 BR, 2 BA • $450,000 • MLS 105302
KDH, Colington Pointe Townhouse
Semi-soundfront w/unbelievable views, 3
masters, upgraded kitchen, great amenities
3 BR, 3 BA • $289,900 • MLS 104096
Nags Head Oceanfront
Established rentals w/potential for $115K w/
updates, gameroom, pool, near Jennette’s Pier
6 BR, 4 BA • $849,000 • MLS 104659
KDH, First Flight Retreat Condo
Oceanfront, well-appointed furnishings, heat-
ed pool, spa, tness ctr & gameroom
2 BR, 2 BA • $385,000 • MLS 105650
Powell’s Point Soundfront
Rare property with 378 of water front, boat
ramp w/10 permitted slips, safe harbor canal
4 BR, 3 BA • $824,500 • MLS 104569
The Village at Nags Head
Golf views, on cul-de-sac, completely remod-
eled, all new windows, maintenance free
3 BR, 2 BA • $335,000 • MLS 105834
e Village at Nags Head
Exceptional: location, condition, ocean view &
rental income. Pool, hot tub, almost 10% ROI
6 BR, 4.5 BA • $764,900 • MLS 105293
Nags Head, Southridge
Open concept top oor living area, screened
porch/sundecks, top master, updated kitchen
4 BR, 2.5 BA • $350,000 • MLS 103786
Corolla, Ocean Sands
Short walk to beach, well maintained, game-
room, beautiful pool, screen porch, cul-de-sac
4 BR, 3 BA • $349,000 • MLS 96482
Just a Sampling of Our Listings for Sale
Southern Shores, Chicahauk
Minutes to ocean but high & dry, many recent
updates, kept immaculate, fenced yard, garage
3 BR, 2 BA • $419,000 • MLS 105524
Nags Head Oceanfront
Amazing views, 6,340 sf, elevator, theater rm,
pool, exercise rm, $240K rents, sister house listed
11 BR, 10 BA, 2 PB • $2,399,000 • MLS 104140
KDH, Waters Edge
Salt marsh view, 1,668 sf beautifully maintained,
gated comm. has pool & marina, 5 min. to beach
3 BR, 3 BA • $344,950 • MLS 105275
Kitty Hawk Westside
Ocean & golf views, beautifully furnished rent-
al machine, pool, hot tub, 2 game areas
6 BR, 5.5 BA • $529,000 • MLS 105833
KDH, Colington Pointe
Upgraded, furnished, quartz counters, tile oors
in kit/ba, dry entry, comm. pool, boat ramp
3 BR, 2.5 BA • $299,500 • MLS 104081
South Nags Head Oceanfront
Spectacular ocean to sound views, 5,500 sf,
fantastic rentals, all masters, elevator, pool
8 BR, 9.5 BA • $1,925,000 • MLS 103958
Nags Head, Southridge
Quiet street, 2,252 sf beautifully maintained,
remodeled kitchen & master bath, heated pool
4 BR, 3.5 BA • $489,000 • MLS 105038
The Village at Nags Head
Sound & golf front, 2,696 sf, gorgeous views,
beautifully maintained, owner occupied
4 BR, 3.5 BA • $530,000 • MLS 103747
e Village at Nags Head
Ocean view, beautifully maintained, regularly
updated, easy beach access, comm. pool
4 BR, 3.5 BA • $579,000 • MLS 102495
e Currituck Club
Golf views, 3,320 sf, beautiful home, pool & sun
deck, strong rental history, featured on HGTV
5 BR, 5.5 BA • $575,000 • MLS 103528
KDH, Colington Harbour
Canalfront, bulkheaded, on 2 lots, 1 level living,
landscaped, gas replace, dumbwaiter, garage
3 BR, 2 BA • $334,500 • MLS 105024
Nags Head Oceanfront
Beautifully furnished & maintained, 5,000 sf,
panoramic views, excellent rental revenue
8 BR, 9.5 BA • $1,845,000 • MLS 104579
