For those of you keeping up with the discussions about the static vegetation line in Emerald Isle NC, here is the latest, from our Emerald Tidings, monthly magazine. Now is a great time to be looking at these properties from an investment standpoint. Rented solid for the season and into the fall, priced right, and potential for significant appreciation as these changes go into place.
Call or email if we can help, you can see those properties that are on the market at our websites, yournelsonadvantage.com or macnelson.com, and enter into the MLS from either.
Article from the Island Review, July 2008 Issue.
Commission Considers Changes to Static Vegetation Line As reported previously in Emerald Tidings, the NC Coastal Resources Commission, the policy making body for coastal development in North Carolina, is currently considering amendments to their rules to allow for the potential retirement of the "static vegetation line" used in areas where the beach has been nourished. Under current CRC rules, the "static vegetation line" is established at the location of the actual first line of stable vegetation just prior to the construction of a beach nourishment project. This line is then used to determine oceanfront setbacks in perpetuity. The result is that lots and structures that are nonconforming (i.e., not buildable or re-buildable) will remain non-conforming in perpetuity, even if the actual first line of stable vegetation has migrated toward the ocean following a beach nourishment project. In Emerald Isle, the area most impacted by the current CRC rules is the eastern two miles of oceanfront between the Indian Beach town line and Pier Pointe condominiums. All structures and lots in this area are behind a "static vegetation line," and nearly all will be nonconforming in perpetuity - meaning that existing structures cannot be reconstructed if they become damaged more than 50% and that any existing vacant lots cannot be built upon. The CRC has been discussing possible amendments to the "static vegetation line" rules for nearly two years and appears to have reached some consensus on proposed changes to the rules. The proposed rules changes would allow a local community to petition the CRC to retire the "static vegetation line" and revert to using the actual first line of stable vegetation to determine oceanfront building setbacks. In order to gain CRC approval to retire the "static vegetation line," a community would need to submit a 30-year beach maintenance plan that identifies sand sources and funding sources to insure that the beach will be properly maintained in the future. It is important to note that the proposed changes would still require a new structure to meet the setback (60 feet in eastern Emerald Isle) from the actual first line of actual stable vegetation and that new structures would be limited to 2,500 heated square feet (86% of the existing oceanfront structures in eastern Emerald Isle are less than 2,500 square feet). The CRC has received extensive stakeholder input on this issue already and has scheduled several additional public hearings at various locations along the coast in the coming weeks to gain additional input on the proposed amendments. Public hearings will be held in Surf City on July 7, Carolina Beach on July 8, Supply on July 14, and Beaufort on July 15. A final public hearing will be held at the CRC's regular meeting in Raleigh on July 24, after which a decision could be made on the new rules. Interested citizens are encouraged to attend one of these public hearings to express their views on this matter. If the new rules are approved in July, the town would then begin work on a 30-year beach maintenance plan to submit to the CRC at a future meeting. It is likely that the development of the plan will take up to six months and the plan could be submitted for CRC consideration in early 2009. The town is optimistic that it can devise a reasonable plan that will be supported by the citizens of Emerald Isle and the CRC. If that plan is ultimately approved, new construction could begin on the oceanfront in eastern Emerald Isle by mid-2009. Again, it is important for property owners to recognize that: 1) the town's plan must be approved by the CRC, 2) that any new structures must be able to meet the 60-foot oceanfront setback from the actual first line of stable vegetation and 3) that the size of new structures would be limited to 2,500 heated sq. ft. For more information on this issue, please contact Dr. Jeffrey Warren, NC Division of Coastal Management, at jeff.warren@ ncmail.net or 919-733-2293, ext 241, or Frank Rush, Town Manager, at 252-354-3424 or frush@emeraldisle-nc.org.
Wednesday, June 25, 2008
Condominium Owners .. Article of Interest
Those of you owning property on Emerald Isle, that has common area, such as town homes or condominiums, duplexes or triplexes .. you might want to read this . Emerald Isle real estate is cranking up, it is a great season, and if you've not got your property on the market and are thinking about doing so, now is the time. Interest in condominiums has increased significantly over the last month, and we should see this interest reflected in the number of condos sold within the next 30-60 days. At Connect to the Coast, we'll keep you posted. Remember to go to our website, YourNelsonAdvantage.com to see the latest info and newsletter.
Daily Real Estate News June 24, 2008A Commonly Missed Tax Break Condominium or cooperative residents often miss the fact that upgrades to the common areas of communities can affect the amount of tax an owner pays when the home is sold.If the property is a principal residence and the owner has lived in it for two of the previous five years before the sale, a big chunk of the profit is already exempt from federal tax — $250,000 for a single person and $500,000 for a married couple. But the seller will owe taxes on any profit beyond that, and he will owe taxes on the whole amount if the property isn’t a primary residence.A proportional share of the amounts spent by the condo or cooperative association on improvements to the property — not simple maintenance — can be added to the amount paid for the property, or in tax lingo, “the basis.” The basis is subtracted from the sales price to determine any taxable profit.“It surprises me that many community association owners are not aware of this tax benefit. Particularly for older home owners who have watched real estate profit build up over many years and now have a profit of more than $500,000, every dollar of capital improvements they can document is valuable,” says Benny L. Kass, real estate attorney.Source: The Washington Post, Benny L. Kass
Daily Real Estate News June 24, 2008A Commonly Missed Tax Break Condominium or cooperative residents often miss the fact that upgrades to the common areas of communities can affect the amount of tax an owner pays when the home is sold.If the property is a principal residence and the owner has lived in it for two of the previous five years before the sale, a big chunk of the profit is already exempt from federal tax — $250,000 for a single person and $500,000 for a married couple. But the seller will owe taxes on any profit beyond that, and he will owe taxes on the whole amount if the property isn’t a primary residence.A proportional share of the amounts spent by the condo or cooperative association on improvements to the property — not simple maintenance — can be added to the amount paid for the property, or in tax lingo, “the basis.” The basis is subtracted from the sales price to determine any taxable profit.“It surprises me that many community association owners are not aware of this tax benefit. Particularly for older home owners who have watched real estate profit build up over many years and now have a profit of more than $500,000, every dollar of capital improvements they can document is valuable,” says Benny L. Kass, real estate attorney.Source: The Washington Post, Benny L. Kass
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