What Buyers Should Know About Taxes, Insurance and Financing
Dreaming of owning a Virginia vacation home? You’re not alone—especially if you’ve ever spent a weekend in Cape Charles. With its walkable downtown, peaceful beaches, and small-town charm, Cape Charles offers one of the most welcoming (and affordable) spots for a second home on the East Coast.
But the big question remains:
Can you actually afford to buy a vacation home here in Virginia?
From taxes and insurance to financing options and rental potential, this guide will help you make a smart, informed decision about buying your Cape Charles getaway.
1. How Much Does a Virginia Vacation Home in Cape Charles Cost?
Compared to hot spots like the Outer Banks or Rehoboth Beach, Cape Charles offers more value per square foot—and less hustle and bustle. While home prices have increased in recent years, it’s still one of the most accessible beach towns in the region.
Want to see what’s currently available?
👉 Browse Cape Charles listings
2. Virginia Vacation Home Ownership Costs: What to Budget For
When planning for your Virginia vacation home, don’t forget the recurring costs that go beyond your mortgage:
📊 Property Taxes
Northampton County’s 2024 property tax rate is $0.83 per $100 of assessed value. So a $450,000 home would carry around $3,735 annually in taxes.
👉 Check the current tax rates here
🌊 Flood & Homeowners Insurance
Waterfront or flood zone homes often require separate flood coverage. Depending on risk level, expect to pay between $500–$3,000/year for flood insurance.
👉 Learn more on FloodSmart.gov
🔧 Maintenance & Utilities
Whether you hire a property manager or DIY the upkeep, budget at least $2,000–$5,000/year for maintenance, landscaping, HVAC servicing, and repairs.
3. Financing a Virginia Vacation Home: What to Expect
Banks typically treat vacation homes as either:
🏠 Second Homes
- For personal use (no regular rental income)
- Requires 10–20% down
- Lower interest rates than investment properties
💼 Investment Properties
- If you’ll rent regularly (e.g., Airbnb or VRBO)
- Requires 20–25% down
- Higher rates and stricter qualifications
Pro Tip: Get pre-approved through a lender familiar with Virginia’s vacation markets, like Atlantic Bay Mortgage or TowneBank Mortgage.
4. Renting Out Your Vacation Home in Cape Charles
Planning to offset your costs by renting the home? Great! Cape Charles has strong demand for summer rentals, especially walkable homes near the beach or marina. But…
You’ll need to:
- Apply for a short-term rental permit through the Town of Cape Charles
- Ensure your HOA allows rentals
- Collect and remit lodging tax at the state and local levels
👉 Cape Charles short-term rental rules explained
5. Key Questions Before You Buy a Virginia Vacation Home
Ask yourself:
- Can I afford the mortgage + taxes + insurance—even without rental income?
- Will I use it enough to justify the cost?
- Do I want something turnkey, or am I okay with renovations?
- What are my long-term goals (retirement, family legacy, resale)?
Your Cape Charles Dream Starts Here
Owning a Virginia vacation home in Cape Charles can be more realistic than you think—with the right planning and local expertise. At Chesapeake Properties, we help second-home buyers like you find the right home, understand the hidden costs, and connect with trusted lenders, inspectors, and insurance pros.
📩 Contact us today to talk with a local agent
🏡 Explore current Cape Charles listings
