Kinnakeet Shores Resort FAQ

Q1- Why should I invest in property at Kinnakeet Shores rather than purchasing a lot at another development on Hatteras Island?

A1- Kinnakeet Shores is not only the largest planned community on Hatteras Island, but also its only four seasons resort. The resort boasts an impressive array of amenities including 69 acres of freshwater lakes, an outdoor Olympic-sized pool with extensive sun decks, two Har-Tru tennis courts, and a 2.3 acre oceanfront Beach Club with two pools, bathhouse, social pavilion, concession stand and private boardwalk to the ocean. The resort features over a mile of elevated pedestrian walkways, which will wind through a pristine maritime forest and wildlife refuge on their way to the shores of the Pamlico Sound.

In addition to our recreational amenities, Kinnakeet Shores also has the most extensive infrastructure of any community on the Outer Banks including professional landscaping, underground utilities and a state-of-the-art waste water treatment plant. Our community is one of the most desirable vacation destinations with the average home renting 24+ weeks each year while some are approaching 40 weeks. Overall, we firmly believe that an investment at Kinnakeet Shores will prove to be amongst the strongest Outer Banks real estate possible.

Q2- I've considered purchasing a building lot on the Outer banks for some time now and have looked at properties both on Hatteras Island and other locations further north in the Duck/Corolla areas. What are the advantages of buying on Hatteras Island?

A2- For starters, the beaches on Hatteras Island have recently been ranked in 10th place on "America's Best Beaches" list. Since the majority of land on Hatteras Island is part of the National Seashore it can never be developed. Because of this, the crowds and congestion, which often typify the northern beaches, can not be found on Hatteras Island. Most first-time visitors are amazed at just how spacious and wide open the beaches really are. Veterans to the area recognize the island's allure.peaceful and serene with some of the best beaches in the world. Hatteras Island can also boast about its longer rental season due to the influence of the Gulf Stream currents which pass within six miles of the shore.

Q3- Is there still a good selection of building lots available at Kinnakeet Shores?

A3- Sales during the 2005 season were exceptionally strong; while those in 2006 were less vigorous. For the future, we have saved the best for last. With completion of our final phase, a total of 51 additional sites will become available. These sites will be situated around the bulkheaded shores of our newest lake and adjacent to our recreational areas.

Q4- How much of Kinnakeet Shores has been set aside as green space areas? How accessible are these areas to homeowners/visitors.

A4- Approximately half of Kinnakeets Shores 537 acres have been set aside as environmentally protected areas; these include 69 acres of freshwater lakes with more then 5 miles of shoreline, over a mile of Sound-front beaches and approximately 200 acres of bird and wildlife refuge. Of course the crowning jewel of our natural resources is access to over a mile of beautiful Atlantic beachfront.

Q5- In general, what are the protective convenants at Kinnakeet Shores?

A5- A comprehensive set of protective covenants have been developed for each phase of the resort. As a general rule, all new home construction projects must be reviewed and approved by the architectual review committee, which is comprised of of existing homeowners. For all new phases, there is a minimum building size requirement of 2,500 sq. ft. for all new homes.

Q6- Are all of your lots improved and if so, what utility services are you providing?

A6- All building sites within the resort are serviced by underground utilities comprised of water, electric, cable and sewage. Of particular note is our new wastewater treatment facility which has a capacity of 350,000 gallons per day.

Q7- I've heard that the real estate market on the Outer Banks has seen significant growth over the past several years. How have values in Kinnakeet Shores fared during this period?

A7- Hatteras Island has experienced strong growth as both vacationers and investors have discovered this island paradise. For several years, values increased 25-35 percent per year. This year has seen a significant growth in both retail sales and tourism. As Hatteras Island's only four-season resort, we expect values at Kinnakeet Shores to continue to post better than average returns.

Q8- I'm interested in purchasing an investment property somewhere on the Outer Banks and was wondering how strong the rental market is in the Kinnakeet Shores community?

A8- The rental market at Kinnakeet Shores is one of the strongest on the Outer Banks. While rentals at the northern beaches average 12-18 weeks, the average for this area is often 24-26 weeks. Normally summer vacation rentals are strong up and down the Outer Banks. Typically however, our season starts in late winter to early spring as wind surfers from around the world come to visit the renowned waters of the Canadian Hole located just two miles south of Kinnakeet Shores. The warmer ocean temperatures (influenced by the Gulf Stream currents coming within six miles of our shores) attract a large variety of fish year round helping to bolster our spring and fall rental seasons. All of this coupled with our long list of amenities is placing Kinnakeet Shores Resort as a top pick for a family vacation destination. So, no matter which season you chose, visitors are always drawn to this area.

Q9- Is it realistic to think that property within the resort will continue to hold its value over time?

A9- There are some strong market trends that are fueling the island's economy and these seem to be holding strong even in recent times. One primary factor is the limited amount of land available on Hatteras Island: 63 percent is owned by the federal park system, 14 percent belongs to the state, and 11 percent is wetlands. This leaves only 12 percent of all land available for private development. Both its pristine beauty and scarcity of supply make this a highly desirable location that will only increase in value as demand continues.

Another important factor is the underlying consideration of most real estate investments - location, location, and location. Miles of surrounding beaches and spectacular views make this a great investment opportunity at values much more attractive than other East Coast resort areas where prices are often three to four times higher.

With a steady supply of over 300,000 visitors per week to the Outer Banks during the vacation season, the area is constantly growing in popularity. The possibility of second home ownership with rental income to offset expenses is a great incentive for a large array of buyers.

All things considered, the real estate market in this area shows strong potential and will continue to attract visitors and homeowners alike