Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
There are several property types in the Long Beach Island real estate market. The most common classifications in the LBI real estate market are single-family homes, condos, duplexes, vacant land, and commercial sale listings. Each property type has unique attributes that can significantly impact your investment in LBI. For example, single-family homes are the most common type of sale in the LBI real estate market, with the best market appreciation rates but also the most expensive. Some buyers prefer condos with a more affordable entry price point and generally lower maintenance. Browse each type of property for sale on Long Beach Island to learn about the differences between each!
Understanding the different property types on Long Beach Island New Jersey is essential to buying a home in the area. Each property category is unique, and important differences exist in financing a home purchase, rehab or redevelopment of a home, and future use or expansion potential between each property category. For example, duplexes generally have tighter restrictions for mortgages in the LBI real estate market and can carry a higher interest rate than a single-family home. Condos are far less expensive than a single-family home, but can have rental restrictions and limitations on financing. Additionally, some larger complexes can be more costly to insure than a single-family home. All buyers in the LBI real estate market need to understand the unique attributes of each property type before entering into a Long Beach Island real estate sales transaction.
Single-family homes make up the largest percentage of sale transactions in the LBI real estate market. In any given month, there are about 20-30 transactions with an average price of around $1,500,000-$3,000,000. Single-family homes represent the most active property type of the LBI real estate market and account for the majority of monthly sales on Long Beach Island. Single-family home options range from traditional Cape Cod style homes to magnificent new construction in a variety of locations and price points. The age of the home, the lot size, the building envelope, the home's condition, and any water view are the primary factors that impact the home's price in the LBI real estate market.
The LBI real estate market has several different forms of condo ownership. Large, professionally managed complexes, smaller converted motels, and 2-unit condo complexes that share a common lot are the most common in the LBI real estate market. Condos are among the most varied segments of the LBI real estate market, with sizes, styles, and price options presenting a wide range of options. While condos make up a small percentage of the Long Beach Island real estate market (only around 10%), they can offer some of the best options for entry into the market. It is important to understand the by-laws of any condo association and be aware of what is and is not covered in any monthly fee. The management of the condo association is also extremely important. Lastly, some condo associations have found that the cost of insurance has risen dramatically. Therefore, all LBI real estate market condo buyers need to do their homework to ensure the investment is sound. While condos tend to appreciate slower than single-family homes in the LBI real estate market, they have a much lower price point, which can open the field to more buyers if the condo needs to be sold.
Mulit-family homes and duplexes on LBI can offer a great investment opportunity, generating substantial rental income. They can also provide a path to affordable home ownership in the LBI real estate market. Duplexes and multi-family homes offer a way to buy a house on LBI, use one floor personally, and rent the other to cover some ownership costs! Duplexes provide the unique ability to invest in a rental property or help cover ownership costs while generating income simultaneously. If a buyer is looking to purchase a duplex with a mortgage and rent one floor out for the summer, it is reasonable to expect that a whole summer of rental should cover most or all of their annual mortgage expenses! Lending options can differ for duplexes and multi-family homes as banks usually write these loans as investment mortgages rather than as a second-home mortgage. Investment loans tend to carry a higher down payment and interest rate, so the cost of owning your LBI home may be higher than expected. Some banks are willing to consider other options, and depending on how you use the home and how you take the title, you may qualify for a better rate and mortgage product. Therefore, speaking with your lender before entering into any contract to buy a duplex or multi-family home in the LBI real estate market is important.
Building a new home on Long Beach Island is the best investment and use of your money in the LBI real estate market. There are a variety of ways to procure a building site. While some vacant parcels of land are left on LBI, most new construction starts with buying an older home and demolishing it to make way for a new construction. Building a new home is an investment of time, but the project should realize instant equity in the property, making it one of the best investments in the real estate market on Long Beach Island. I handle this kind of transaction quite often, and we usually see between 20% and 30% in the finished project. In other words, if you spent $2,000,000 buying a building site and constructing a new home, that home should be worth in the area of $2,500,000. That is a much better discount than can be negotiated with a seller, and you have the added benefit of designing the home to suit your needs. Hands down, if you are looking to beat the LBI real estate market, building a new home in the right location, with the right builder and with the right guidence is the way to do it!
The waterfront market on Long Beach Island will usually see the highest price point of any property type in the LBI real estate market. Waterfront home locations are on the ocean, bay, and lagoonfront throughout Long Beach Island. Most waterfront homes are single-family homes, large condo complexes, and occasionally a duplex or multi-family home. Offering the best views on LBI, the waterfront real estate market offers the most exclusive locations on Long Beach Island. However, it does carry a higher price tag and added restrictions when building a new house, as most construction on the waterfront will require CAFRA approvals.
Interval Ownership is a unique form of ownership that blends aspects of condo ownership with a timeshare. This option allows for an affordable purchase in the LBI real estate market; however, re-sale can be difficult, and financing options are limited. Similar to a timeshare, several property owners share the home's usage with a pre-determined calendar. Most interval ownership homes allow for 10 weeks of use per "share" of ownership. Interval ownership is actual ownership of the home, which is very different from a timeshare, and all the owners are named on the deed to the home. Interval ownership allows for an affordable option to own a home on Long Beach Island New Jersey. However, buyers must be aware of the limited market application, the high monthly cost of ownership, and limited financing options.
Commercial real estate on Long Beach Island is one of the hardest markets to navigate. Regarding the number of listings and closed transactions, commercial real estate on Long Beach Island is one of the slowest areas of the LBI real estate market. However, commercial real estate can be some of the most lucrative when purchased or leased correctly! Price, terms, and location are paramount in the commercial market on LBI. Recently, there have been several changes concerning the redevelopment of commercial properties. Now, more than ever, it is important to understand the market and the future development potential with the sale or rental of commercial property.
