Buying a second home for a rental property in Outer Banks can be a wonderful investment – and one with plenty of perks, too. Whether you intend to vacation here occasionally or you’re planning to rent out your home permanently, you’ll need to decide between purchasing new construction or a resale.
Here’s what you need to know.
Buying a Second Home for a Rental: New Homes vs. Resale Homes
There are several great reasons to buy a second home in the Outer Banks. It’s a top vacation spot for people from around the world, it’s home to some of the most beautiful scenery on the Atlantic Coast, and the area is teeming with restaurants, shops and attractions.
If you’ve chosen to buy a home here, whether you choose to make it your own vacation spot or you intend to use it as a rental property, you’ll have to decide whether you prefer new construction or a resale home – and as OBX REALTORS®, we can tell you that owning a second home:
- Can provide tax advantages
- May make you a landlord
- Will probably require you to use a conventional mortgage or cash
The choice between purchasing a new home and purchasing a resale home depends on how you intend to use the property, how much money you’re willing to invest for improvements, and whether you plan to spend time in it or use it purely as an investment.
Many people search Outer Banks real estate listings to see what’s available before deciding between a new home and an existing home.
Advantages to Buying a New Home as a Vacation or Rental Property in the Outer Banks
Buying a new home is a wonderful way to ensure you get all the things you want – and need – in your space. If you choose custom construction, you can zero in on every detail and build your dream home from the ground up, which is ideal if you intend to use your property for part of the year and rent it out while you’re not in residence. Check out these other advantages, too:
- Newly built homes are, by default, more energy efficient than their older counterparts are. That results in lower energy bills and a smaller carbon footprint – so it’s a win for you and the environment.
- Recently built homes usually have fewer maintenance costs during the first several years of ownership. Most builders include a wide range of warranties on their homes, and so do appliance manufacturers, which helps you save even if something does go wrong.
- Everything is new when you purchase a home that’s been designed just for you. You’ll be the first – and only – people to use the home, and there’s definitely something to be said for that.
Advantages to Buying a Resale Home as a Vacation or Rental Property in the Outer Banks
Buying a resale home has plenty of advantages, such as having established neighbors and being closer to the amenities you or your tenants need. If you don’t intend to spend any time in the property and want to rent it out periodically or permanently, a resale home may be the right choice for you. Check out these other advantages to buying a resale home:
- Resale homes may be more in your price range – and you can always invest in improvements and upgrades later, too. Sometimes resale homes have lower property tax rates, too, so talk to your REALTOR if that’s one of your concerns.
- You may have more room to negotiate with a seller than you would with a builder, which means you could spend less and get more house for your money.
- Resale homes often come with things you’d have to pay more for in a new home, such as major appliances, landscaping, light fixtures and window treatments.
Are You Looking for a Second Home for a Rental in the Outer Banks?
Ultimately, the best way to figure out whether you should buy a newly constructed home or a resale home is to search Outer Banks real estate listings and see what’s available. If the amenities, layout or style you want isn’t available right now – or if it rarely is – you may want to opt for a new build.
If you’re looking for the perfect investment property or vacation home in the Outer Banks, we can help. While you’re here, you can search:
- Corolla homes for sale
- Duck, Southern Shores and Kitty Hawk homes for sale
- Kill Devil Hills homes for sale
- Nags Head homes for sale
- Avon homes for sale
- Buxton homes for sale
- Rodanthe, Waves and Salvo homes for sale
- Frisco homes for sale
- Hatteras homes for sale
- Manteo homes for sale
When you’re ready, call us at 252-491-3333 to tell us what you’re looking for – we’ll help you find it.