Investing in the Long Beach Island New Jersey Real Estate Market
LBI NJ Real Estate InvestmentLong Beach Island Real Estate
The LBI real estate market has, for a long time, attracted the attention of investors looking for a smart use of their money. The Long Beach Island real estate market has proven to be a smart investment due to the strength of the LBI real estate market as a whole. This has been demonstrated twice in recent memory. The first being the financial crisis in 2008 (which saw the lowest price points in the LBI real estate market) and secondly with the impact of Hurricane Sandy. It is true that in both cases there were those who lost money on their investment however the vast majority of buyers, sellers and investors in the LBI real estate market made out very well. LBI NJ real estate investment, like any kind of financial investment requires understanding the market, knowing when and what to buy and knowing when to sell.
Investing in the LBI NJ Real Estate Market
There are several forms of ownership in the LBI real estate market. They are:
- Single Family Homes on Long Beach Island
- Multi Family Homes on Long Beach Island
- Condominiums on Long Beach Island
- Interval Ownership on Long Beach Island
- Commercial Real Estate on Long Beach Island
Of these categories, historically, the best investments are in single family homes and multi family homes. Single family homes are by far the most active segment of the LBI real estate market. A single family home in the LBI real estate market will range in price depending on location, condition and lot size but they can trade for as low as $125,000 and can exceed $10,000,000! In most cases, the best return on an LBI real estate investment will occur when a property is purchased, demolished and a new home is built. When pursing a tear down in the LBI real estate market, it is important to think in general terms. One should consider location above all else and seek a location that can offer some view of the ocean or the bay. The layout of the new house should be open and inviting avoiding small rooms and cramped spaces. Likewise, there are some excellent opportunities to renovate an existing Cape Cod style home or raised ranch for considerably less money than building new. While the return on the LBI NJ real estate investment will be lower, so will the initial money that must be laid out.
Duplexes and multi family homes in the LBI real estate market are less active with typically about 2-4 closing each month but many duplexes can offer a positive cash flow from summer rentals in their current condition. It is a common move in the LBI NJ real estate investment market to purchase a duplex on a larger lot, rent the house for several years and then knock the existing duplex down and build new side by side townhomes.
While opportunities can exist in the other forms of ownership on Long Beach Island, the return on the investment tends to be lower and the risks greater. Condominiums can depreciate more quickly in a market downturn as opposed to a single family home making them a riskier proposition. Interval ownership, which is a blend of condo ownership and a timeshare, have poor market resales and while they are an excellent alternative for those seeking a lower entry price point, owners seldom see worthwhile increases. Commercial real estate may offer an interesting opportunity but only in specific circumstances and with the right property (ideally a commercial space with a residential unit attached).
Getting Started with you LBI NJ Real Estate Investment
It is interesting to note that many investors consider real estate investment in a luxury home market such as LBI to be a better overall investment than the stock market. Luxury home markets are exclusive and since Long Beach Island is not getting any larger, the simple law of supply and demand kicks in. This leads to a natural market appreciation that has been witnessed time and time again in the LBI NJ real estate market. Couple this with the fact that all homes in the LBI real estate market can be rented and it is easy to see why there is interest in LBI NJ real estate investment. If you have any questions about investing in the Long Beach Island NJ real estate market please do not hesitate to contact me, Nathan Colmer, on my cell phone 609-290-4293 or feel free to email me anytime! You can also click here to search the LBI real estate market.
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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