Vacant Land and Building Lots in the Long Beach Island Real Estate Market on LBI NJ
Building Lots on Long Beach Island NJNathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
The LBI NJ Real Estate Market
The LBI NJ real estate market has many different properties ranging from small condos up to multi-million dollar oceanfront estates. A core feature of the LBI real estate market is new construction. With Hurricane Sandy having damaged many homes on LBI, there has been a surge in new construction on LBI. Many buyers in the LBI real estate market have been looking for Building Lots on Long Beach Island NJ to design and build a dream home at the beach and there are some great opportunities to buy a tear down or building lot in the LBI real estate market.
Building Lots on Long Beach Island NJ
It is important to remember that when it comes to building lots on LBI, this often does not mean buying a vacant lot. Rather, it means buying an older home and knocking it down to make way for new construction. There are a few things to keep in mind when looking for building lots:
- Lot size is essential. the minimum lot width you should look for is 40 feet.
- The cost to demolish a house will usually run around $8,000-$9,0000 and an additional $1,000-$2,000 if asbestos siding is present at the property
- The cost of the lot should be about 2/3 of the cost of the total project
Apart from location, the lot size will be the driving force in the value of the building lot. An undersized lot will often require a variance to build and will restrict the size of the house that can be built. In most towns on LBI, the side yard setbacks are 4″ and 11″ meaning on a 40″ wide lot, you can build a 25″ wide house. Ideally, you want a width of at least 50 feet so you have more flexibility in the design of a house as this will give you a 35″ wide house
Many buyers are surprised by the comparatively low cost of demolition. The presence of asbestos is not something to be feared as asbestos siding is mostly a concrete substance with asbestos so the additional cost of demolition. A demolition company will safely strip and dispose of the material and then proceed with the demolition.
When looking for a building lot on Long Beach Island, it is important to keep cost in mind. The true value in the LBI real estate market is in the land however it is important to not overpay for the land. As I mention above, you do not want the land to exceed roughly two thirds of the cost of the entire project. Therefore, if you spend $500,000 on a lot, your cost of construction should come in around $250,000-$300,000 in order to beat the market. Ideally, you should see about a 20% return on the investment when completed!
Buying in the LBI NJ Real Estate Market
Thanks in part to Hurricane Sandy there have been some great buying opportunities for Building Lots on Long Beach Island NJ. When you find the right lot size in the right location, there is a great chance to develop a property with new construction for far less than you would be able to buy a similar house in the Long Beach Island real estate market. You can search tear downs and building lots in the LBI real estate market by clicking here or contact Nathan Colmer for details on finding a lot and building a new home on Long Beach Island.
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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