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I have a nice vacation home in Boone (Blowing Rock) but I live in SF. I cannot figure out current buying trends there. Could anybody tell me something of the real estate market in/around Boone nowadays? I need to figure out if I should sell my house (I have an 8 months olf daughter whom I am raising alone so I need to be careful with money), or if I should rent it out? Thank you!
Property values in Boone are still growing very rapidly. We bought a few acres about 5 years ago for just 13000 and it is worth A LOT now. If you can afford it it would be worth it to hold on to what ever land you have in that area. (the land is most likely worth more than your house)
I have spent quite a bit of time in the Blowing Rock/Boone area these past few months as I am contemplating relocating there. I have looked mainly in the Blowing Rock area, but the whole area (Blowing Rock, Boone, Valle Crucis, Banner Elk) is doing very well in terms of the property values. Since October there has been a "cooling off" of sales, but that is typical of this time of year. As you know, the busiest months are April/May to Oct./Nov. and that's when you will see the market the hottest. I can tell you that if your home is in good condition, you can rent it for top dollar if you list it in the spring, but you wouldn't get as much if you listed it now. I plan on renting first before buying, and I'm looking at paying $1,500-1,700 rent for a 2BR/2BA small cottage (approx. 1,500 sf) in Blowing Rock. You should look at the MLS listings on Avery-Watauga Association of REALTORS® (http://board.usamls.net/averywatauga - broken link) to get an idea of what homes are listed at right now. Also take a look at The Mountain Times - Classifieds to get an idea of what homes are renting for right now. I can guarantee you that it will be much higher come spring/summer.
Like the previous poster said, if you don't need the equity in your home right now, I would definitely keep the home because, pending some unforeseen happening, I only see real estate going up in value in that area. And if you don't plan on using the home for vacation, you can always rent it out and make a substantial amount in rental income each year.
Just my .02 as to having resort area rental property that you are not close to and do not maintain yourself.
1) It is not easy money. The "potential" rental income that does develop is reduced by significant property management fees, unending maintenance problems that you pay top dollar to have repaired, less than excellent workmanship, "normal wear and tear" for a rental property (which is above normal w&t), and extended downtime between rentals. In short, long-distance rental property, even when it is locally managed, is high risk.
In all seriousness, be prepared to make very little net income, even before the depreciation expense, and possibly have a loss.
2) Mangement companies will typically require at least a one year agreement with the owner before they will take the property on. You would do well to have your attorney look over any management agreement before signing up.
3) You have to have a "landlord mentality." An owner who can not detach themselves emotionally from the property will be seriously disappointed during the period they are renting out the property. Minor issues such as the recently replaced carpet that now again has to be replaced because of the pet odor or red dye (fruit drinks), cigarette burns in the carpet or furniture, and holes in the wall have to be dealt with in a business-like manner rather than taken personally.
What others have said as to holding onto the property as it will only go up in value could possibly be a true statement. Of course, with time, you will also be paying insurance, taxes, and providing for maintenance and repairs, which, being in the reosrt area, also have a higher rate.
In terms of the current market: Right now, agents that I have talked with in Blowing Rock say that they are seeing a buyer's market. How long will this continue? That might influence you to not market your house for sale now. But, is the market going to hold at this level or continue to drop? A property that we made a low-ball offer on in March that was not accepted by the sellers is now listed at much less than our offer.
In my opinion, Blowing Rock would be a wonderful area for a child to grow up in. So if it were me, I would consider whether it would be best to sell what you have in SF and move into the Blowing Rock house. For simplicity, let me say that there could be substantial IRS tax advantages to selling your SF "primary residence," such that it might be worth talking to a tax professional not only from this aspect but also as to a rental consequences.
Right now, the temperature in nearby Grandfather Mountain in 24 degrees, 7 knot wind and today's temperature should get up to 50.
I have spent quite a bit of time in the Blowing Rock/Boone area these past few months as I am contemplating relocating there. I have looked mainly in the Blowing Rock area, but the whole area (Blowing Rock, Boone, Valle Crucis, Banner Elk) is doing very well in terms of the property values. Since October there has been a "cooling off" of sales, but that is typical of this time of year. As you know, the busiest months are April/May to Oct./Nov. and that's when you will see the market the hottest. I can tell you that if your home is in good condition, you can rent it for top dollar if you list it in the spring, but you wouldn't get as much if you listed it now. I plan on renting first before buying, and I'm looking at paying $1,500-1,700 rent for a 2BR/2BA small cottage (approx. 1,500 sf) in Blowing Rock. You should look at the MLS listings on Avery-Watauga Association of REALTORS® (http://board.usamls.net/averywatauga - broken link) to get an idea of what homes are listed at right now. Also take a look at The Mountain Times - Classifieds to get an idea of what homes are renting for right now. I can guarantee you that it will be much higher come spring/summer.
Like the previous poster said, if you don't need the equity in your home right now, I would definitely keep the home because, pending some unforeseen happening, I only see real estate going up in value in that area. And if you don't plan on using the home for vacation, you can always rent it out and make a substantial amount in rental income each year.
Regards,
Carolyn
Carolyn, Is there a similar public MLS website for Buncombe County that you know of???
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Maybe Rent is a good option.
