Understanding the Definitions of Ownership in the Long Beach Island Real Estate Market
Forms of Ownership in the LBI Real Estate MarketLong Beach Island Real Estate
The LBI real estate market is primarily a second home an investment market. While there are primary residences on LBI, the majority of homes that are purchased are intended to be used as a vacation homes or investment properties. It is important to understand the different forms of ownership in the LBI real estate market so you can determine what is the best route for you.
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Forms of Ownership in the LBI Real Estate Market
A vacation or investment home can be a many of the same ways as a primary residence. It is important to consult with an attorney or financial planner to make sure you keep the real estate in the method that best suits your personal and financial goals. The most common forms of ownership in the LBI real estate market are:
- Fee Simple
- Corporation
- Co-Ownership
- A Trust
Fee simple ownership is the most common form of ownership on LBI. In short, fee simple ownership is utilized by an individual or partners who have rights to the home.
Real estate on Long Beach Island is commonly held in a corporate structure. Most commonly used will be an LLC that will hold a major asset, which is the real estate. Corporate ownership is especially effective in case of an investment or rental property, as it can limit your liability in the event of an accident, or as a speculative real estate investment.
Co-ownership or interval ownership as it is known on Long Beach Island is a hybrid between a condo and timeshare. Under this scenario, there are multiple members who each have an equal share in the ownership and use the property. Interval ownership will typically grant the right to use 10 weeks throughout the year, which is similar to a timeshare, however you own a deed as you would in a single-family home or condominium.
Trusts are the last of the most commonly seen forms of ownership in the LBI real estate market. Under a trust, a trustee holds title but the beneficiary retains control and full ownership rights property. Trusts can be complicated and confusing some like all other forms of ownership, it is important to check with the proper professionals to determine what is the best route.
Buying a Home LBI Real Estate Market
When determining what is the proper form of ownership for your LBI property, it is important to keep in mind your goals. If the home is being purchased strictly for personal use, a fee simple ownership may be the best option. For investments, a corporate structure or an LLC can offer additional layers of protection. There are many options available so it is important to thoroughly understand all of the different forms of ownership in the LBI real estate market before making a purchase. For more information about buying a home in the LBI real estate market, CONTACT ME and I will respond right away.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
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