Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

Building a New Home in the LBI NJ Real Estate Market

Nathan Colmer | The Van Dyk Group

C: 609.290.4293 | O: 609.492.1511

Long Beach Island New Construction

Building a new home on Long Beach Island New Jersey can be one of the best investments possible in the LBI real estate market. Apart from the obvious benefit of being able to design a home to the specifications you desire, there is enormous upside financial potential relative to the real estate sale market on Long Beach Island. I have put together information covering all aspects of new construction on Long Beach Island to help you understand the process and benefits of such an endeavor.

 

 

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

Building a New Home in the LBI NJ Real Estate Market

 

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

Building a new construction in the LBI NJ real estate market has a number of advantages over buying a ready built home. The basic process involves:

  • Finding the right vacant land or tear down
  • Meeting with an architect and builder
  • Working through the construction of the home with the builder

Below you will find details on the steps needed in building a new home on Long Beach Island.

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

Building A New Home in the LBI Real Estate Market

Most of the new construction on Long Beach Island takes place when an older home, such as a Cape Cod, is purchased and demolished to make way for the new house. Demolition costs will vary greatly depending on the size and style of the house but demolition will typically cost around $8,000-$10,000. Building a New Home in the LBI Real Estate Market will, in most cases, take between 6 and 8 months to complete after demolition has finished. The cost of building a new home will vary depending on a few factors such as:

  • Complexity of the design
  • Finishes selected by the homeowner
  • Construction materials selected

A good “rough number” to use when estimating new construction is around $175 and $200/ sq foot. Therefore, building a new home with finishes of hardwood floors, granite counter tops, hurricane impact windows, etc will cost around $350,000-$400,000 for a 2,000 sq foot house.

When the cost to build is added to the price of a vacant piece of land or a tear down, there is amazing upside potential. I handle a great number of these transactions and we see an immediate equity position of between 20% and 30% relative to the cost of the land. To put that into perspective, if a buyer were to spend $1,000,000 on the purchase of a piece of land and the building of a house, the finished house would be worth between $1,200,000 and $1,300,000 in the current market on Long Beach Island.

 

 

 

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

Vacant Land & Tear Down Homes on LBI

The old adage, Location, Location, Location is of the utmost importance in the LBI real estate market. The location of the home will help to determine the size and style of the house that can be built as well as the future value of that home in the LBI real estate market.

 

 

 

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

House Plans and Designs on LBI

Depending on the site location, most new construction will have some degree of waterview. Views help to add a great deal of value to a home int he LBI real estate market so it is important to take advantage of any view and design the house accordingly. You can review some sample house plans here and get an idea of layout and style.

 

 

 

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

New Construction and the LBI Real Estate Market

Learn about some real life projects I have put together to help a buyer and builder develop a great home with tremendous upside value in the LBI real estate market. Such opportunities exist everyday in the real estate market on Long Beach Island and I can help you find them!

 

 

 

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

Long Beach Island Zoning and Restrictions

Each town on Long Beach Island will have unique building codes and setback requirements. While there rules are constantly evolving, it helps to have a basic understanding of what to expect from the municipalities and from FEMA guidelines. An understanding of these rules is critically important to ensure your dream house can actually fit on the lot!

 

 

 

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

Financing the Project

One of the greatest concerns buyers have is how to best finance the property purchase and construction. This is certainly something to take into account as this kind of speculative financings is notoriously expensive and partnering with the wrong bank can skew the returns unfavorably. There are a few creative ways to finance the purchase and construction of a new home in the LBI real estate market as well as some local banks who have attractive options available.

 

 

 

Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

Real Estate Tip

Building is not only an investment of money but also of your time. While there are many compelling arguments to build, the process is not for everyone. Make sure you are comfortable taking on such a large project!

 

LBI New Construction | Building A New Home On Long Beach Island NJ | LBI Real Estate New Construction

More Information About Building A New Home on Long Beach Island New Jersey

 

New Construction and the Real Estate Market on Long Beach Island NJ

New construction sounds like an intimidating prospect, especially when the majority of homeowners on Long Beach Island are about 2 hours away, but the process can be very rewarding.  When building a new home on Long Beach Island, there are a few preliminary items to consider... [Read More]

 

New Construction in a V Zone on Long Beach Island NJ

If you are considering New Construction in a V Zone on Long Beach Island NJ, then there are some new guidelines that must be followed to ensure both the safety of your property and the preservation of an affordable flood insurance premium...[Read More]

 

Design Guidelines for New Construction in Beach Haven

Beach Haven on Long Beach Island (or LBI), which is one of the oldest seashore towns in New Jersey, has many well preserved homes from the 19th and 20th Century and is fortunate to have them located in one general...[Read More]

 

Construction Loans on Long Beach Island New Jersey

The LBI Real Estate Market The real estate market on Long Beach Island consists of many different styles of homes in a wide variety of price ranges and locations. Unlike many other real estate market, Long Beach Island sees a great..[Read More]

 

Lot Sizes on Long Beach Island New Jersey

New Construction in the LBI NJ Real Estate Market One often overlooked area of the LBI real estate market is new construction. Many buyers tend to pass by new construction as a viable option but the reality is that building a new home in the LBI NJ real estate market..[Read More]

 

Building a New Home in the LBI Real Estate Market on Long Beach Island NJ

The LBI real estate market is comprised of a variety of different homes and ownership options. By far the most common form of ownership on Long Beach Island is that of the single family home however the LBI real estate market..[Read More]

 

 

 

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Your LBI Beach House is a Phone Call Away! Call Nathan Colmer 609-290-4293

Nathan Colmer

609.290.4293

ncolmer@vandykgroup.com

The Van Dyk Group

12800 Long Beach Blvd

Beach Haven Terrace NJ 08008

609.492.1511