Duplex in Multi-Family Home Sales in the LBI Real Estate Market Between September 2014 and March 2015
The LBI real estate market is comprised of several different property types. One of the most versatile is the multi family home option. The majority of multi-family homes in the LBI real estate market are two family duplexes. Most of these homes were constructed in 1950s and 1960s and are comprised of a upstairs and downstairs unit, each with its own kitchen, bathrooms, living areas, bedrooms, and private entrance. The market for duplexes on Long Beach Island has always been strong, as these homes offer excellent opportunities to both enjoy and rent a property simultaneously. A quick look at this Long Beach Island real estate duplex sales update shows us that the market for duplexes is still very strong on LBI.
Long Beach Island Real Estate Duplex Sales Update
Between September 2014 and March 2015 sales of duplex in Long Beach Island were as follows:
- 35 duplexes sold during this time period
- The average price of a duplex was $764,191
- The average price per square foot for a duplex was $447.71
- On average, duplexes spent 192 days on the market
The average price per square foot for a duplex was lower than the average price per square foot of a single-family home by approximately $100. This shows us that there are some potential opportunities to purchase a duplex and a less expensive price point than a single-family home. Overall, the average price of a duplex was also lower than their single-family home counterparts and duplexes took slightly longer to sell. Much of this can be explained by the lack of understanding surrounding duplexes. Even in our MLS searches, duplexes are categorized differently which can make it easy for some agents to miss them entirely. There are excellent opportunities to take advantage of the duplex market on Long Beach Island and purchase a home under value.
Buying a Duplex in the LBI Real Estate Market
There are some important differences when purchasing duplexes in the LBI real estate market. For example, most banks will automatically considered duplexes to be investment properties and therefore may require a higher down payment, usually in the 25% range. Interest rates were duplexes can also be marginally higher, so it is important to speak with the lender to understand the total costs associated with the purchase. That said, duplexes offer unique advantages both in the short-term. In the short-term, duplexes offer the ability to use and rent a property simultaneously. In the long term, duplexes allow for new side-by-side townhomes to be constructed which can offer instant equity in the LBI real estate market. For more information about his Long Beach Island real estate duplex sales update, or the LBI real estate market in general, contact me and I will respond right away.
By : Nathan Colmer | The Van Dyk Group
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