Summer Winds Sales Prospectus

Purchasing a condo is purchasing a lifestyle. It’s carefree living. One does not have to worry with exterior maintenance or even maintaining a lawn. It’s basically come to the beach and enjoy!

Summer Winds is a very popular oceanfront condominium complex in the quaint fishing village of Salter Path near the center of Bogue Banks Island. Unit floor plans range from two bedroom units to the spacious four bedroom unit. A few exclusive penthouse units are on site also. Summer Winds boast more amenities than usually anticipated at an oceanfront condo complex. For the water enthusiast, the amenities include an indoor heated swimming pool, three large outdoor pools, boarded walkways for ocean access & indoor and outdoor hot tubs. For the sports enthusiast, Summer Winds has lighted tennis courts and racquetball courts on site. A lounge & conference facilities are available for large groups or family gatherings. Other fun spots include the video game room, exercise room, sauna and steam showers. There is boat and boat trailer parking on site. Summer Winds is staffed by a full-time security staff and has a gated entry. This oceanfront complex is close to nearby theme parks, golfing and seafood restaurants.

Expenses of condo ownership typically include a mortgage payment (if applicable), homeowner association dues, and basic utility costs (phone & electric). Homeowner association dues normally include maintenance & insurance on the exterior of the structures and common areas, sewer, water, basic cable and garbage pickup. The homeowner dues and what they include will vary from complex to complex so investigate each condo complex thoroughly before you purchase.

The concept of owning secondary real estate is gaining popularity due to the low interest rates and the uncertainty of the stock market. Many buyers desire purchasing beach property for second home use only while others try the combination of second home use & vacation rental investment.

Second home use is quite advantageous for many reasons: personal & enjoyment use for family & friends, investment potential and very substantial tax benefits. It is strongly advised to check with your tax accountant to obtain tax advice & possible tax benefits that will apply to you & your family.

Here are a few ideas for you to consider if you are thinking about purchasing a condo for rental investment use. Consider how long you plan to own the property. The longer you own it, the more you’ll need for maintenance, improvements & repairs. If you are considering a short term investment, you’ll probably want to avoid making any major improvements unless you anticipate a higher selling price to recuperate such expenditures. Many short term investors are benefiting on the low mortgage rates of interest only loans for financing for such ventures.

The investor strategy as recent as five years ago was to have the rental income fully subsidize the expenses. The market has dramatically changed. The investor today should focus on potential equity increasing at a ratio to surpass the monthly negative income. For example, if monthly expenses are $2000 (mortgage, utilities, HOA dues, etc.) and the net rental income satisfies $1600 of this debt, in more cases than not, the equity growth will capture this loss over time.

Property values & sales prices have escalated rapidly in the most recent years, while the rental weekly rates, thus income to a homeowner, have increased in much smaller proportions. Plan to pay cash or increase the down payment amount more than the normally minimum required 20% (thus lowering the mortgage amount) if you expect your condo income to significantly cover your expenses.

It is recommended to thoroughly investigate the expenses, recent year’s income histories and maintenance records for any condo unit you are considering purchasing. Any sales professional at Bluewater GMAC Real Estate will be happy to assist you in obtaining these records and will gladly provide a cash flow analysis for your consideration.

Every real estate market is different nevertheless the resort and coastal markets have been consistently doing well – most especially over the most recent years. Summer Winds condos have escalated 2-3 times since they were originally built in the early 1980’s. Individual unit prices vary according to size, floor location, view, proximity to the ocean, etc.

At the present time, two bedroom units are hovering around the $450,000 range. They may reach the $500,000 range in the upcoming months. A two bedroom unit sold in early 2004 for $209,000 while later in November, the sold prices reached as high as $305,000. Thus far in 2005, two bedroom sales are in the low $400,000s.

Three bedroom units (two varying floor plans) remain very popular. In early 2004, three bedroom unit sale prices ranged from $229,000 and climbed to $380,000 in December. This year, prices on three bedroom units have ranged from $406,000 to a whopping $497,500.

Summer Winds also offer four bedroom condos in two floor plan variations. These are most comfortable for accommodating larger families and groups. One such unit sold in December of 2004 for $520,000 while the 2005 prices are now pushing the $600,000 range.

If you are considering purchasing or selling a unit at Summer Winds, be prepared to move quickly! The average days on market from contract to closing are 49 while the average list to sell price is 98%.

Contact a Bluewater GMAC Real Estate sales professional for up to date market activity and a thorough explanation of the benefits of condo ownership.