Owning a vacation home is a privilege few buyers enjoy. Count yourself as one of them and experience the joys of having your own private getaway. Whether it’s a cabin in the Smoky Mountains or a beachfront home in the Northern Coast, you’ll find plenty of options in North Carolina.
Vacation Homes for Sale in North Carolina
A vacation home is a residential unit – often a single-family home or a condo –other than the buyer’s primary residence that is used for leisure and recreational purposes. Since vacation homes are only used at certain times of the year, many owners rent out their properties when they are not occupying it.
Mortgages for vacation homes typically have higher interest rates because buyers are more likely to default on them. In difficult financial situations, buyers are more likely to save their primary residence from foreclosure than their secondary homes.
Keep in mind that in NC, short-term lodging is subject to sales tax, much like a traditional hotel or bed and breakfast. Renting your home directly or through platforms like Airbnb, you become liable for taxation at the local and state level.
You can address this by taking the time to learn where, when, and how you are supposed to collect, file, and send taxes to the North Carolina Department of Revenue. Having a good understanding of your tax responsibilities will help you avoid fines and penalties for late payments.
Sales tax management for your NC can be accomplished in three steps:
- Registration with the right government agencies
- Collection from short-term renters
- Filing sales tax returns.
The due dates for sales tax returns in NC are:
- Quarterly – Due on the last day of the month following the end of the quarter
- Monthly – Due on every 20th of the month, following the end of the filing period
Why Buy a Vacation Home?
If you’re a hiker who loves to explore the slopes of the Smoky Mountains or the Blue Ridge Mountains or a swimmer with a penchant for the Northern Coast and Outer Banks, there’s wide range of vacation homes at all price points.
Owning a vacation home in NC lets you get away from the hustle and bustle of the city, or the brutal winters that descend on your hometown. You’ll have a place to go to when you need a change in scenery.
It lets you enjoy outdoor activities like hiking, camping, boating, fishing, and swimming. Vacation homes often come with amenities that let you pursue your hobbies. These amenities could be anything from fire pits and BBQ grills to docks and boathouses.
These residences are also situated in locations that help you make the most of the environment. You’ll find vacation homes that provide direct access to the beach or the water – go for a swim whenever you feel like it, and enjoy views of the ocean from your own backyard.
They’re also a great investment. In the short-term, any asset can fluctuate in value. However, vacation homes are likely to retain value because they are located in popular vacation spots where there’s a limited supply of homes.
Vacation homes can also generate rental income. Rental fees often vary with the season and the popularity of the location, but in some cases, rental fees during peak season will be equal to or greater than the monthly mortgage payment.
If you’re in the market for a vacation home, the Pat Allen Realty Group would be glad to assist you. Call us at 828-526-8784 or send us a message here.