Why There Are Less Building Lots Available on Long Beach Island
Less Building Lots on Long Beach IslandLong Beach Island Real Estate
The LBI real estate market can be an area of excellent investment. One of the best investment opportunities on LBI is in the area of new construction. Building a new home in the LBI real estate market can offer outstanding returns on an investment with the average being 20% to 30%! While there are still a number of opportunities to partake in Long Beach Island real estate investment, there are Less Building Lots on Long Beach Island thanks to Hurricane Sandy which will make the market more competitive.
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Less Building Lots on Long Beach Island
Less building lots on Long Beach Island will have several impacts on the LBI real estate market:
- Real estate speculation will begin to take the form of renovating homes built 20 or so years ago
- Vacant land and tear downs will see an increased number of bids as supply diminishes
- Overall, the impact of so many new homes on the market will increase the value of the LBI real estate market
As there are fewer and fewer tear downs, investors in the real estate market will begin looking for alternative options. One strong possibility for these alternative investment is in the renovation of elevated homes that were built in the last 20 year or so. These homes will most likely meet the favorable elevation requirement and only require cosmetic updates. This will make for a rather easy project that can offer a strong return on the investment.
As vacant land and tear down homes become fewer and fewer, competition for these homes will increase. There are a finite number of qualified building opportunities and these properties are already in high demand, especially in homes that are in close proximity to the beach. Hurricane Sandy accelerating the diminishing of building sites by causing damage to many of the older homes on LBI. These homes were torn down or raised above base flood elevation after substantial renovation.
This process will be very positive for the long term values on Long Beach Island. These homes are more storm proof and will be better able to withstand any future storm. These homes will also trade at a higher value in the LBI real estate market which will in turn, increase the property values of land!
Investing in the LBI NJ Real Estate Market
Like any investment, it is important to remember that there are risks associated with the process. That said, with the possibility of a 20% to 30% return on the investment, Long Beach Island can present itself as a safe investment. For more information about investing in the LBI real estate market or Less Building Lots on Long Beach Island, 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
Click here to search all homes for sale in the Long Beach Island NJ real estate market