Investing in Beach Property

southportbeachMany home buyers are taking advantage of low interest rates and realizing their dream of owning a beach house. Purchasing beachfront Southport NC real estate, may be the best decision investment home buyers will ever make.

While the beach house itself is a prized possession, owners of Southport NC real estate have a scenic view down the long stretch of the beach, and a variety of activities that come with it, to enjoy the whole year. From parasailing, surfing, kayaking or biking and walking the beach front, Southport beguiles not just seasoned locals but everyday visitors as well.

There is oceanfront Southport NC real estate that are ideal rental properties. You can add yours to the list, never worrying about finding renters as they come the whole year round. Who wouldn’t be excited to spend a relaxing vacation in a good-looking rental property on coastal North Carolina?

It makes it easier to schedule your own vacation, whether it be for a few weeks or months on end, when you own your own beachfront property. You will never have to think about hotels and what to bring for that needed vacation.

Southport NC real estate provides wonderful retirement homes. The many health benefits of living here include the relaxation that comes from living by the ocean, the healing effects of being near and in salt water, and enough sun to boost your immune system and brighten your mood on a daily basis. With the long walks either on the beach or on trails, retirees have a home just waiting here in Southport.

Benefits of Beach House Investing

57265_1With today’s current housing market flooded, in which homes for sale are priced low, many home buyers are now realizing their dreams of owning their own beach house. Beachfront property like Holden Beach real estate, may be the best decision investment home buyers will ever make.

While the beach house itself is already a prized possession, owners of Holden Beach real estate have a scenic view down the long stretch of the beach, and a variety of activities that come with it, to enjoy the whole year. From parasailing, surfing, kayaking or biking and walking the beach front, Holden Beach beguiles not just seasoned locals but everyday visitors as well.

There is oceanfront Holden Beach real estate that is in use as, or could be used as, rental property. You can add yours to the list, never worrying about finding renters as they come year round. Who wouldn’t be excited to spend a relaxing vacation in a good-looking rental property on coastal North Carolina?

57265_6Having a beachfront property, you can easily schedule your own vacation, whether it be for a few weeks or months on end. You will never have to think about rental expenses and what to bring for that needed vacation. The beach house is at your disposal, anytime you need it!

Beach houses are wonderful retirement homes. Health benefits of living here include the relaxation that comes from living by the ocean, the known healing effects of salt water, and enough sun to boost your immune system and brighten your mood. With the long walks either on the beach or on trails, retirees have a home here at Holden Beach.

Time to Buy?

Okay, by now there is no way that you haven’t heard!  The real estate market is down!  Were you expecting that one?

What this means to you?

As the market is down and credit for aspiring homeowners is falling there are fewer and fewer ‘qualified’ buyers.  The difference is, the market may seem like it is picking up some, but don’t be fooled.  Many of these new home prospects are going to be unable to finance homes in the area.

This means that it is the right time to purchase a new home.

As the home supply remains high and there are fewer and fewer home buyers in the market the prices of homes is extremely low.  If you’re looking for a bargain – here it is.  Some homes that were several hundred thousand dollars are having their price tags slashed in an effort to sell the home more quickly.

How to take advantage of the current market in Ocean Isle and Holden Beach?

Contact someone from Sloane Realty and inquire about new communities in Ocean Isle and Holden Beach.  Tell them that you read about some of the great deals and special on their blog.

It is okay to ask — What is the plan for selling my home?

No agent can guarantee that they will be able to sell your home.  However, Sloane Realty has decades of experience in the Brunswick County real estate market and they’d love to help you.

One of the most important interview questions that you should ask your real estate agent is, “How do you plan to sell my home?”  If this question draws blank stares and stumbling answers then you may need to take some extra time to investigate the experience and quality of your agent.

Ask them – “Are you going to put my home on a website?”  or  “Are you going to run ads in the local paper with my home featured?”

These are key questions and they set the stage for a great understanding and communication between you and your broker.

Why now is the time to buy

In any economic market the ‘market’ is always uncertian.  The only things that can give clear indication of when it’s time to buy and time to sell are key economic indicators.  Just today, Yahoo! Finance reported jobless claims increased and labor costs decreased.

What does this mean?  

The labor costs decreasing and productivity increasing indicates inflation will remain in check for now.  This is indicative that the Federal Reserve’s credit policy will have some breathing room.  Jobless claims increasing means there are less buyers in the market.  Referring back to Supply & Demand 101, the prices of homes will fall.

How does this affect me?

If you’re looking at buying a home then let’s look at these two market conditions:

  • Prices of homes has decreased again.
  • Good to Average credit scores should have an opportunity to find excellent financing.

Contact a Sloane Realty representative and let us help you find the Ocean Isle Beach real estate you’re looking for.

Quick Lesson in Ratios for Home Buyers

These are the ratios that banks and mortgage lenders are concerned with when lending the money to sell a home.  When you’re looking for Ocean Isle Beach Real Estate be sure to do your home work.  Sloane Realty is here to assist you in your endeavor to purchase Ocean Isle Beach Real Estate.

(article excerpt http://www.bankrate.com/clv/green/mtg/basics1-2a.asp?caret=3)

Front-end Ratio
The housing expense, or front-end ratio, shows how much of your gross (pretax) monthly income would go toward the mortgage payment. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28 percent of your gross monthly income. To calculate your housing expense, multiply your annual salary by 0.28, then divide by 12 (months). The answer is your maximum housing expense.

Maximum housing expense = annual salary x 0.28 / 12 (months)

Back-end Ratio
The total debt-to-income, or back-end ratio, shows how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees. In general, your total monthly debt obligation should not exceed 36 percent of your gross income. To calculate your debt-to-income ratio, multiply your annual salary by 0.36, then divide by 12 (months). The answer is your maximum allowable debt-to-income ratio.

Maximum allowable debt-to-income ratio = annual salary x 0.36 / 12 (months)

Take Advantage of Current Market Conditions

It is nothing new to anyone that the national real estate market is incredibly slow these days. Home owners that are trying to sell their property are having a difficult time getting their asking price and many of them have resorted to slashing the home’s price, losing much of their potential profit just to get the home off their hands.

Home buyers need to take advantage of this trend so they can receive amazing deals on a home.
Find a dream vacation home in Ocean Isle Beach, North Carolina. Many homes are for sale in the market and are extremely affordable. Ocean Isle Beach is a beautiful beach town located in the southern tip of North Carolina’s beautiful coast. Let Sloane Realty be your first choice when deciding on Ocean Isle Beach real estate.

The Concept of Real Estate Supply and Demand

The real estate market is a business cycle. There are buyers’ markets and then there are sellers’ markets. The cycle is all based on the concept of supply and demand.

During a “sellers’ market,” homes sell quickly and sellers’ are in control of prices. This results in increased prices. During “buyers’ markets,” homes tend to sit on the market for a while before being sold, sellers normally drop prices.
When buying your home in Brunswick County, to get the most out of your money you should buy when the market is in the buyers hands.
Sloane Realty has homes to fit into anyone’s price range. From well maintained existing homes in Ocean Isle Beach, to homes in Holden Beach new communities, Sloane Realty is the premier realty company in Brunswick County.

Buying Your First Home in Ocean Isle

Nothing can compare to the excitement of buying your first home. Owning a house is a classic aspect of the American dream that you do not think about until everything seems to be going right in your life.

Remember though, buying a home is no walk in the park. You might find several houses that you really like, but not quite the perfect one for you. If you do not really want a “fixer upper,” do not buy one. If you want something that has been well maintained and spacious just remember that it will cost more.
 
Most people end up compromising on the house they buy. It might not make sense to buy a brand new home if you cannot afford it or do not really need one. You might end up buying a home that was built a few decades ago if it is stable, well made, and within your price range.
 
Sloane Realty is the Ocean Isle Beach and surrounding area’s leading source for quality real estate. Whether you are looking to buy an existing home or a brand new home, you can find what you are looking for with Sloane Realty.

Ocean Isle Beach Rentals & Sunset Beach Rentals Income and Expenses

Include all of the income that your receive from the use of the property. This includes money received by tenants for utilities which may also be considered a rental deductable. Lease cancellation payments as well as fair market value of services or property received in place of money are considered rental income. Income does not include security deposit if returned.

Depending if you are a cash basis taxpayer or use an accrual method will define which year to record the income. If you’re a cash basis taxpayer record the income in the year of which you receive them. This also implies if you receive income in advance; record it to the year received not the year in which it applies. Expenses of the rental property can be deducted and are record in the year that you pay them not the year that they occurred. If you use an accrual method you’ll do just the opposite of a cash basis taxpayer. In this method you record the income in the year that it is earned. For example, if your tenant gives you money for January’s rent on December 2006 then the income would be recorded on your 2007 taxes. This applies for the expenses as well. If the water bill for December 2006 was paid in January 2007 they should be recorded in 2006.

Expenses include:

  • Depreciation
  • Utilities
  • Managing, Conserving, or Maintaining of the property while it is not being rented
  • Advertising
  • Rental Payments if your lease the property from someone
  • Rental of Equipment for property use
  • Utilities
  • Insurance
  • Taxes
  • Interest
  • Commissions
  • Tax return preparation fees
  • Travel expenses
  • Local transportation expenses

Expenses do not include Improvements but they may be recovered in depreciation expenses. Check out IRS.Gov for more information on Ocean Isle Beach Rentals & Sunset Beach Rentals tax information.