U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Coastal North Carolina
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-26-2010, 06:25 AM
 
1 posts, read 12,856 times
Reputation: 13

Advertisements

Hey im considering on buying oceanfront property on north topsail beach and use it for rental income. The house should pay for it's self in 15 years when i plan to retire. However i am concerned about beach erosion. Should i be concerned about beach erosion before considering a purchase thanks.
Reply With Quote Quick reply to this message

 
Old 08-26-2010, 06:51 AM
 
Location: Morehead City, NC
1,676 posts, read 5,354,974 times
Reputation: 1244
However i am concerned about beach erosion.
Yes, you should be. Beach erosion is a fact. The question is rate of erosion and is their a system in place to renourish the beach.
Another fact-Accretion. Shorelines can go through a process where the beach expands. Erosion and accretion is the natural process of a beach. Sometimes this process takes a year, a decade, a century...........
Reply With Quote Quick reply to this message
 
Old 08-26-2010, 07:03 AM
 
Location: Southeastern Cumberland County
983 posts, read 3,521,677 times
Reputation: 805
Yes, especially N. Topsail....and consider flooding issues as well there, as if a hurricane makes landfall near that end of the coast, then you have storm surge to consider.
Reply With Quote Quick reply to this message
 
Old 08-26-2010, 07:30 AM
 
22,769 posts, read 26,201,775 times
Reputation: 14558
Quote:
Originally Posted by jayzay55 View Post
Should i be concerned about beach erosion before considering a purchase thanks.

short answer is YES. the long term environmental impacts to your property are your responsibility, something that many buyers and owners are ignorant of. maybe the local/county/state/federal government will be there to protect your investment, should it become jeapordized, but history shows that is hit or miss.

hopefully someone can help you with a better answer, of how to protect your capital, how to choose a property that is relatively safe in the long term.
Reply With Quote Quick reply to this message
 
Old 08-26-2010, 01:20 PM
 
Location: NC
128 posts, read 432,384 times
Reputation: 104
Quote:
Originally Posted by jayzay55 View Post
Hey im considering on buying oceanfront property on north topsail beach and use it for rental income. The house should pay for it's self in 15 years when i plan to retire. However i am concerned about beach erosion. Should i be concerned about beach erosion before considering a purchase thanks.
Most of North Topsail Beach is not eligible for federal flood insurance and private flood insurance is pricey. Also, if you plan to use rental income to pay your mortgage you better put a lot of money down. Rental income on the island (especially N. Topsail) will not come close to covering a typical mortgage, especially a 15 year mortgage unless you plan to put 30-40% down. Don't believe inflated rental income claims by the seller.

The other problem you will have is decreasing property values. North Topsail is still falling although not as rapidly as a year ago but you do need to be prepared to lose equity in the short term if you purchase now. My advice would be to wait at least until the early spring before you buy and look at Surf City or Topsail Beach rather than North Topsail. You'll qualify for federal flood insurance and the rental market is a lot better closer to the Surf City bridge. The same goes for property values.
Reply With Quote Quick reply to this message
 
Old 08-27-2010, 07:54 AM
 
Location: Newport, NC
956 posts, read 3,590,509 times
Reputation: 703
Besides which the property at Topsail is way overpriced (in my opinion).
Reply With Quote Quick reply to this message
 
Old 08-28-2010, 07:56 AM
 
Location: Surf City, NC
364 posts, read 552,696 times
Reputation: 946
My rental income from a house in Surf City came nowhere near paying the mortgage. I have now retired and moved in fulltime, but the rental income merely "helped" with expenses. Granted, oceanfront will generate more income than my "first-row" location, but don't count on off-season rentals. I rented mine myself, using several online sites and was able to fill it for all of June and July and 2-3 weeks in August. Sometimes I got 1 or 2 weeks or weekends in the off-season (families with Marines arriving or departing from Camp Lejeune mostly). I did much better once I started renting it myself rather than counting on a management firm (two weeks in the whole summer!). North Topsail is a concern for flooding and erosion, our realtor wouldn't even show us anything much north of the Surfside condos.
Reply With Quote Quick reply to this message
 
Old 08-29-2010, 07:45 AM
 
Location: Washington, NC
96 posts, read 355,996 times
Reputation: 46
We also considered buying on N. Topsail. We moved into an oceanfront rental last Oct. and in the first three months watched the entire beach and dunes disappear. In April they started the beach refurbishing (Northern end of N. Topsail) and added a good 75 yards of beach back. Since then we've lost 30yards and at least 2 ft off the surface of the beach. We considered 2 houses under 300k, one had federal Flood Insurance $3200 a year, another with Federal flood for less than $600 per year. Both however were on Non-rebuild-able lots, so if more than 50% of the house is damaged you can't rebuild. Why the discrepancy between the two insurance rates, we have no idea. For some reason they did not refurbish the beach behind the last 4-5 homes closest to the inlet and those homes have water under them from mid tide every day and look to be in jeopardy of rotting and falling down. The other half of our duplex was booked straight for nine weeks, but has no further bookings. We also looked at homes south of here,(still in N.Topsail) newer, more expensive, but they do not qualify for Federal flood and therefor would not cover the mortgage, taxes, and insurance with rentals. We personally have decided to continue to rent as our landlord realized that he made more with a steady year round rental than he did renting for big buck for a few weeks in the summer.

Last edited by mkozlpn; 08-29-2010 at 07:47 AM.. Reason: spelling error
Reply With Quote Quick reply to this message
 
Old 09-11-2010, 10:03 AM
 
Location: Asheville, NC
196 posts, read 499,915 times
Reputation: 115
North Topsail Beach is considered one of the most endangered developments on the Eastern Seaboard. Read this report and you will understand. http://www.protectthebeach.com/temp/...0paper-05e.pdf

My wife and I will likely buy a place this Fall on Topsail Island, probably Surf City or Topsail Beach. We made one offer a week ago that went nowhere when the seller countered back with MORE than they listed the place for.

Prices are pretty good and apparently close to bottoming out as local mortgage brokers told us people are getting near their asking price now, though many of these places are being sold at a loss by their owners, are short sales, or foreclosed.

As for rental income, we hope we can cover perhaps 75% of the mortgage, insurance, and other costs this way, knowing beach places aren't a good investment. But in 3 to 7 years we plan to retire there and, after selling our current home in Maryland, should be able to pay off the mortgage on Topsail Island.
Reply With Quote Quick reply to this message
 
Old 09-11-2010, 10:10 AM
 
Location: Asheville, NC
196 posts, read 499,915 times
Reputation: 115
Quote:
Originally Posted by mkozlpn View Post
We considered 2 houses under 300k, one had federal Flood Insurance $3200 a year, another with Federal flood for less than $600 per year. Both however were on Non-rebuild-able lots, so if more than 50% of the house is damaged you can't rebuild. Why the discrepancy between the two insurance rates, we have no idea.
There are two non-CoBRA areas in North Topsail Beach, that might explain the insurance differences. Also considered are whether the house is in VE or AE zones, height of the property, and other factors. We just received a flood insurance quote of $2500 on the house we made on offer on Topsail Beach, plus there is still the cost of regular insurance for fire, wind, hail, etc. that qas quoted at $1400. And this is in a non-CoBRA zone south of Surf City.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Coastal North Carolina
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top