You’ve likely heard the phrase “a rising tide lifts all boats,” meaning we all benefit from a good economy. The opposite is also true, as we have all seen since 2007-2008. Yet, many buyers and sellers don’t realize that whether the market is rising or falling, the tide isn’t lifting or lowering all boats equally and this provides you with an excellent opportunity!
Near the market peak in late 2005 and early 2006, buyers of Outer Banks investment properties found themselves pushed further and further from the ocean, due to high market values. Many buyers were purchasing homes nearly a quarter mile from the beach, because these were the only homes that were within their budget. With the fall in values that our market has experienced during the last 8 years, buyers’ purchasing power has significantly increased. Many are finding that homes that are just a few lots off the ocean are now within their reach. In fact, property values have fallen most for Outer Banks oceanfront homes (Think ‘the bigger they are, the harder they fall’) and then semi-oceanfront, two off the ocean, and so on. When the market begins to appreciate once more, the ‘tide’ of rising market values will raise oceanfront homes and those closest to the ocean much higher than those that sit many lots away from the beach. When times are good, some yachts rise far higher than others!
In other words, there hasn’t been a better opportunity for buyers to purchase this close to the ocean in many, many years. By purchasing now, you are poised for your OBX investment property or second home to benefit from the rising tide of price appreciation in the future. In the meantime, there is an additional benefit for you to enjoy: higher rental income. Outer Banks homes that sit closest to the ocean not only rent for more money, due to their proximity to the beach; they also rent first. So, your income stream begins sooner in the year than for those property owners whose homes sit many lots further back.
So this discussion today about rising and falling tides is just another way of illustrating that lot location is the single most critical factor in your purchase.