Understanding the Cost of Owning a Single Family Home in the LBI NJ Real Estate Market
Long Beach Island Real Estate Market
The Long Beach Island real estate market comprises the majority of the LBI economy. Many people dream of owning a vacation home on Long Beach Island NJ so it is easy to understand why there is and always has been a high demand for buying a home in the Long Beach Island real estate market. What is often not understood are the Costs of Ownership in the Long Beach Island New Jersey Real Estate Market and how these costs will impact your ability to buy in the local market.
Costs of Ownership in the Long Beach Island New Jersey Real Estate Market
Before you begin your home search on Long Beach Island, it is important to understand the Costs of Ownership in the Long Beach Island New Jersey Real Estate Market. Below are a few of the core costs:
- Mortgage: Statistically about half of the second homes purchased in the United States are purchased with cash. On Long Beach Island, this statistic holds true however many buyers in the LBI real estate market still seek a mortgage for their purchase. In most cases, the minimum down payment will be 20% and the interest rate will depend on current rates and your individual financial picture.
- Taxes: Taxes are surprisingly inexpensive when compared to many areas of New Jersey and New York. The improvements to the property, location and lot size will all play into the tax costs however most traditional Cape Cod style homes pay between $4,000-$5,000/ year with new construction paying around $10,000-$12,000/ year. Oceanfront and bayfront homes tend to have higher taxes, usually around $15,000/ year.
- Insurance: In the wake of Hurricane Sandy insurance, and flood insurance in particular, is on everyone’s mind. If you are purchasing a property in the Long Beach Island real estate market with a mortgage, both homeowners insurance and flood insurance will be required. Homeowner’s insurance may be purchased through any approved agency and the cost will depend on the amount of coverage purchased. Flood insurance rates depend on the elevation of the insured structure above sea level and is fixed by the federal government. In order to receive an exact flood insurance estimate, you will need a flood elevation certificate which details the various aspects of the property for flood insurance rating purposes.
- Maintenance: The cost of upkeep is perhaps the most unknown factor when trying to determine Costs of Ownership in the Long Beach Island New Jersey Real Estate Market. Being a barrier island, Long Beach Island is subject to more wear and tear than inland homes typically will experience. Therefore, the cost of maintaining a property on Long Beach Island NJ will depend on what materials have been used during construction. The general rule of thumb is vinyl products (siding, handrails, etc) are the best option as they will not fade, splinter or crack as quickly as other materials will.
The Costs of Ownership in the Long Beach Island New Jersey Real Estate Market will of course vary from house to house but the above information should give you a starting point. It is strongly advisable to have a home inspection prior to any purchase so you can ascertain any defects in the house that may increase maintenance costs and also advisable to consult a mortgage lender for current interest rates.
Buying a House in the Long Beach Island New Jersey Real Estate Market
If you are considering buying a house in the Long Beach Island New Jersey real estate market it is helpful to understand the Costs of Ownership in the Long Beach Island New Jersey Real Estate Market. Taking this first step will help you understand how much house you can comfortably afford. If you would like more information about the Costs of Ownership in the Long Beach Island New Jersey Real Estate Market or would like to discuss sales and pricing in the Long Beach Island New Jersey real estate market please do not hesitate to contact me, Nathan Colmer, and I will be happy to be of assistance!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org
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