Increased Equity in the LBI Real Estate Market

Increased Equity in the LBI Real Estate Market

Long Beach Island Real Estate Equity Positions for Homeowners

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate

Current homeowners looking to make a move can take advantage of increased equity in the LBI real estate market. Since COVID, the real estate sales and rental market on Long Beach Island have exploded with activity. We see deficient inventory levels coupled with high demand and a very buyer-friendly environment. These trends have led to increased home values, which automatically gives current homeowners an equity position they may not have otherwise had. This is only a “paper gain” until something tangible can be done with it. The good news is, there are several ways to take advantage of the current real estate market on Long Beach Island.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Increased Equity in the LBI Real Estate Market

Home equity is the amount of value your home has after any debts, like a mortgage, are deducted. With home prices have increased, many homeowners on Long Beach Island can take advantage of this newfound equity in the following ways:

  • Sell to take advantage of higher prices
  • Refinance to take cash out of the home and use that money to help fund another purchase
  • Establish a line of credit against the equity to be used in the case of an emergency

The LBI real estate market is, at present, a seller’s market. Many will seek to take advantage of this and cash out. If this is the right choice, sellers can expect very high activity levels and, if priced well, multiple offers. Likewise, sellers can couple the higher prices with the historically low-interest rates to help fuel a move. For example, suppose an existing home was purchased with a higher interest rate. In that case, an owner can use the increased equity coupled with the lower rate to buy another home and end up with roughly the same monthly mortgage payment. This can help a homeowner end up with a materially “better’ home for approximately the same investment. Lastly, a homeowner can establish a credit line against this equity to help access some or all of the money used to make their initial purchase. This helps to solve the lack of liquidity, often cited as a downfall of owning real estate.

Long Beach Island Real Estate Equity Positions for Homeowners

The LBI real estate market is currently favoring sellers and homeowners. While there are opportunities for buyers, especially with rates being so low, there are many ways that a seller can use the current situation to their advantage. These are but a few of the many ways to utilize a home to maximize the investment and the potential to benefit from the rise in home prices. Every situation is different and I am happy to lay out some options in conjunction with your financial advisors and accountant. If you have any questions about Increased Equity in the LBI Real Estate Market or about buyingselling or investing in the LBI real estate market, please do not hesitate to contact me.

By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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