Prior to the COVID 19 pandemic of 2020-21, Emerald Isle was one of the best kept secrets on the North Carolina Outer Banks. Not any more. The pandemic impacted urban areas especially hard and city dwellers with the means and flexibility went looking for safer and quieter places to raise a family. One of those places people discovered was Emerald Isle. People discovered that they could live here year ‘round. They discovered that the public school system was second only to the Chapel Hill-Carrboro school district. They discovered that living at the beach was better than bumper to bumper traffic. They discovered that the internet worked as well if not better here in Carteret County than it did in, say, Wake or Durham counties. They discovered that the COVID 19 virus was a relatively minor blip in the lives of Carteret County residents. They discovered that property prices were an outstanding value. They discovered that Emerald Isle is a place where everyone learns your name.
A year later, everything I just said about Emerald Isle remains the same. Except that real estate prices have increased greatly. Whether these higher values represent value will be a question only historians will be able to answer. But, compared to other island communities, prices in Emerald Isle continue to represent a solid investment. But, how do you know if you are someone who should contemplate living in Emerald Isle or some other island or beach or resort community? I’ll begin by stating that my wife and I had a long term goal to own a beach house in Emerald Isle. It was so exciting and satisfying to purchase our first home here that we quickly purchased a second. Excitement aside, one of the first questions to ask yourself is: can I afford to purchase a home in Emerald Isle? This is a crucial question and one that has many elements to think about, but whenever possible the key is to buy under your budget. Whether you plan to buy a beach house as a vacation home or as your primary home, you don't want stress to be part of the package. Monthly costs that force you to stretch to make payments is not a recommended way to go. Not to mention the other costs that are or may be associated with your beach home like insurance, homeowners association fees, and taxes (particularly if this is a second home). You will want to leave yourself some wiggle room for unforeseen expenses that may arise on any given month and you want to have a little freedom to make spending decisions like hiring a property management company, if you so choose. Getting answers to this first question can be challenging so I recommend you speak to a local real estate professional, like myself, as well as to your accountant and financial advisor.
The next question to answer is: How well do you know the location? I cannot emphasize how important the answer to this question is. I remember visiting Bald Head Island for a weekend and putting down a deposit for a pile of sand. I had never entered the water, I did not even learn if there was a restaurant or any activities for our young children. I was swayed by a very persuasive salesman posing as a real estate professional. That very night my wife asked me: what was I thinking? And, my answer was, I wasn’t. The voice of experience is here to tell you before buying any home, you want to get well acquainted with the area. This is especially true when buying a beach house. Spend time vacationing there. Get to know all the seasons firsthand so you know what to expect throughout the year. Get to know the weather and crowd patterns during the on- and off-seasons of the beach locale. If this is a vacation home for you and your family, is it easily accessible to everyone? Can you get there when you need to if an issue arises? Or get there often enough to enjoy it? Get to know the community and build connections from the get-go. Spend enough time in the location to really get to know the area on a more intimate level. Are there enough activities and things to do for everyone? Are there any concerns about the area that you have? Again, getting answers to these very essential questions will require you to engage the services of a real estate professional like myself.
The third critical question to ask yourself is: Will your beach house be a vacation home, investment property, or both? Bottom line, here, what is your goal? Are you looking solely for a vacation home you and your family can escape to when you desire or are you looking to make money off of it as an investment property that you rent out? Both scenarios have their own sets of considerations. And, from personal experience, they are not mutually exclusive. If you are going to rent out the property, you will need to pay income taxes on the rental income you receive. If you are going to rent, either you or a professional you hire will become the home’s property manager. If you rent, you will need to keep the property in tip top shape, year round. Expect to replace the furniture every few years and make annual updates to keep your property competitive with other comparable homes. If you rent, do you want to reserve prime weeks for yourself or are you OK with living in the home only during the off season? Which begs the question: Are you comfortable sharing your home with strangers? My personal experience is that renting your home is challenging. Finding a good property manager can be difficult. Finding a property manager who can book your home also can be difficult. Replacing seemingly good furniture every few years also can be difficult, especially if you are a middle child like my wife and myself. That being said, we’ve been doing this for 25 years. And we plan on continuing to rent out our two homes into the future. Again, it is best to elicit the opinion of a professional real estate agent, especially one who has walked the walk like myself.
Lastly, will you be there enough to enjoy it? The dream of a beach home has to be coupled with reality. Think about how much time you realistically will spend there. Think about how things may change when your kids get older. Will other commitments keep you tied to home? Will your kids have the time and desire to continue vacationing in the beach home as time goes on? Busy weekends, sports, friends, church and school activities can make it difficult to get away. Be sure the money you spend is worth the amount of time you'll be able to spend there, if this is a vacation home. If you're only getting there a couple weeks out of the year, then renting may be the best option for you and your family. Ask me how I know.
I hope you found these answers to the four questions worthy of your time. To learn more about buying real estate in Emerald Isle and the Crystal Coast, go to www.EmeraldIsleHomesforSaleNC.com and sign up for my blog. Ready to buy or sell? Call me at 919-308-2292. Explore the video tab for my weekly uploads to my YouTube channel. Subscribe to my YouTube channel and receive free donuts at my Flip Flops Donut shop. Text your email address to 919-308-2292 and subscribe to my newsletter. My book, "Live Where You Vacation" is available on Amazon.com.
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