As a fiduciary financial advisor in Ocean Isle Beach, Holland Capital helps owners of a house on the island decide what it is for now: rental income, family use or an eventual sale, and how that choice fits the rest of their plan. We work with clients in Ocean Isle Beach by video and phone, and meet in person by appointment at the Regus center in North Myrtle Beach, South Carolina.
A beach house is more than a place to stay.
Ocean Isle Beach has about 900 year-round residents. Census counts show most of the island’s roughly 3,400 homes are second homes or rentals rather than anyone’s main home.
If you own one of them, it may be one of your largest assets. It may also be the one you think about least as an investment.
The questions change over time. The house that was once a family getaway may now be a rental, a place to retire, or something the children will one day share.
Rental Income and Taxes
Rental income is generally taxable. Expenses such as management fees, repairs, insurance and depreciation may offset some of it, depending on how the house is used.
How the IRS treats the house depends in part on how many days you rent it and how many days your family uses it. That mix can limit the rental expenses you deduct.
Short-term rentals in North Carolina are generally subject to sales tax and local occupancy tax. If a rental company or booking site handles them, confirm which taxes it collects and pays.
The Cost of Owning on the Coast
Coastal ownership has costs that inland homes do not. Wind and flood coverage, storm repairs and the wear from salt air all add up.
A plan sets aside a reserve for those costs, so a bad season does not force a sale or pull money from your retirement savings.
It also compares what the house earns with what it costs to hold, including the money tied up in it.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Keep, Sell or Pass It On
Selling a second home can create a taxable gain. The tax break for selling a main home applies only if you meet its ownership and use tests, and depreciation from renting can add to the tax when you sell. Our guide on capital gains tax planning explains the main choices.
Keeping the house for the next generation raises different questions. Who will own it, who pays the costs and what happens if one child wants to sell? Our guide on estate planning covers the documents that answer them.
At Holland Capital, investment management for a beach house owner starts with how much of your wealth is in the house.
How We Work with Clients in Ocean Isle Beach
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring your last two tax returns, the rental statements from your management company, your insurance declarations, your mortgage statement if you have one, and statements for your other accounts.
We show what the house earns and costs, what each choice would mean for your taxes and your retirement, and what we would do next.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Ocean Isle Beach, we meet by appointment at the Regus center at 1000 2nd Avenue South in North Myrtle Beach, South Carolina, about 40 minutes from Ocean Isle Beach, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Ocean Isle Beach.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Should I Keep My Beach House When I Retire?
It depends on what the house costs, what it earns, how much you use it and what else your retirement needs to pay for. A plan puts those numbers side by side so the choice is clear.
Why Ask a Fiduciary Financial Advisor About a Beach House?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For a beach house owner, that includes advice on the house itself, even though it is not an account we manage.
How we are paid is spelled out before you decide on any service.
Where Would We Meet from Ocean Isle Beach?
By appointment at the Regus center in North Myrtle Beach, South Carolina, about 40 minutes down the coast. If you are staying on the island, we can also meet at the house.
Reviews between meetings work by video or phone.
Photo: Pubdog / Wikimedia Commons / Public domain, cropped.
