LAND in EMERALD ISLE, NC

 

In the early 1900s, the area occupied by Emerald Isle was owned by John A. Royall, a New Englander who owned many islands in neighboring Onslow County. In 1922, Mr. Royall sold the property to Mr. Henry K. Fort of Pennsylvania for $70,000. Mr. Fort was connected to the Dixon Pencil Company of Pennsylvania and planned to use cedar from the property in the manufacture of pencils. I don’t think any timber was ever used to manufacture pencils. Instead, Mr. Fort drew up plans and specifications for a resort development. There still exists a copy of those plans which are remarkably similar to the way the Town has developed.

 

Upon the death of Mr. Fort, the land was inherited by his daughter Anita. She sold the timber rights to W. B. "Bill” McLean in 1946. McLean saw the potential to develop the island as a seaside paradise, but Anita Fort did not want to sell the property and McLean did not have enough money to buy the property.

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Anita later agreed to sell the property for $350,000, and McLean began asking friends if they would be willing to invest in his dream along with his friend George Spell. J. A. "Bus” Singleton, Bill’s brother-in-law threw in, as did Hiram Grantham, another family friend. Between the four of them they had $200,000 which was pretty much their life savings. They still needed another $150,000 which was obtained when Robert Holding, then president of First Citizens Bank of Smithfield, put down the money in the name of his three sons, Frank, Lewis, and Robert Jr.

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After the purchase, the land was divided into 54 blocks, 1,100 feet wide each, running from the sound to the sea. The seven then drew numbers to see who owned which parcels and development started. It is said that Emerald Isle received its name when a consultant hired by Bill McLean and George Spell to advise on the property purchase, flew over the Bogue Banks. The area appeared with its lush forest, a green gem in the middle of a sea of sparking water. The advisor suggested the name 'Emerald Isle'.

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Of the thousands of raw land parcels initially created in Emerald Isle, roughly 300 remain undeveloped. Of these, less than 30 are zoned commercial. What follows is a primer on purchasing raw land in Emerald Isle, NC or other locations throughout the Crystal Coast.

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The Basics

LAND - Simply defined, land is the surface of the earth extending down to the center and upward to the sky, including all natural things thereon such as soil, trees, crops, or water; plus the minerals below the surface and the air rights above.

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Land can be bought or sold as RAW LAND or improved.

 

IMPROVED LAND is real property whose value has been enhanced by the addition of on-site and off-site improvements such as roads, sewers, septic, and utilities, buildings, etc.; as distinguished from raw land.

 

Raw land is a property in its most natural state. The land has not been cultivated for any sort of crop or livestock. There are no improvements such as walking paths, homes, or fences. For years, people didn’t invest much time or thought into raw land. It was dismissed as a poor money maker since it didn’t have any man-made improvements on it and didn’t generate any income. What many people didn’t realize is that even though raw land wasn’t making an income, it was increasing in value. As raw land becomes rarer over time, the value of the land goes up, making it a great investment to save for retirement. Improving the land by getting rid of any environmental hazards or removing invasive plants also helps to increase the value.

Buying Raw Land Vs Developed Land

There are two main differences between raw and developed land. The first is price. Raw land is almost always cheaper than developed land. This is because developed land includes improvements that make it a lot easier for the buyer to make money off of the land. Some common improvements sellers of raw land in Emerald Isle make include doing tests to determine the perkability of the land, and running utilities, which include water and electric.  If the land is perkable, a permit is issued that is renewable every five years. Some owners of raw land will install a septic system but that is rare. 

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The other main difference between the two land types is the flexible uses of raw land compared to developed land. You are often limited to what you can do with developed land. Since developed land has already been cultivated by previous owners, the land is perfect for whatever they used the land for. However, if you want to use the land for something different, that might not be possible or could be costly. For example, if you find a property that you think would be excellent for commercial use, but it’s already been developed as residential, it will be extremely difficult, if not impossible, to change the land. Ask me how I know. 

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With raw land, you can typically do whatever you want with the land as long as it meets the requirements of the soil type and zoning laws. This is a huge benefit for landowners who want to sell to a wide variety of buyers. Raw land in Emerald Isle can usually be used for recreational, residential, or commercial projects. 

 

Turning A Profit From Buying Raw Land

Raw land has been a popular choice for retirement savings thanks to the low-maintenance, 1031 exchanges, and the gradual increase in value over time. One main downside to owning/selling raw land is its lack of liquidity. Another downside is the "buzz" associated with land development. Back in the aughts, new home construction was happening at an unsustainable rate in Emerald Isle. One year, I remember 97 ocean front homes were built. The buzz associated with that construction caused an artificial spike in the demand for land. Today, with limited supply, land sales are steady but they represent only a small percentage of real estate sales in Emerald Isle. A third downside to owning land in Emerald Isle is unique to this area: the lack of contractors and crews to build homes. Emerald Isle simply does not have many builders and those that can't find crews willing to relocate here. Two decades ago, an enormous influx of Hispanic workers, legal and illegal and poorly compensated, helped fuel the unsustainable construction I mentioned earlier in this paragraph. That source of workers has disappeared and crews are once again difficult to cobble together. Indeed, the last time I had my hose painted, I had to hire a contractor and crew from the Research Triangle to complete the task.

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If your plans for finding your ideal place in Emerald Isle involves purchasing raw land and building your home from architectural plans, give me a call or text me at 919-308-2292. I have experience purchasing raw land, developing it, hiring architects and contractors. Or, send me an email to: Denis@CrystalCoastRealtyGroup.com. 

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