Long Beach Island Real Estate Investment

Looking For a Safe Real Estate Investment? Try Long Beach Island

Long Beach Island Real Estate Investment
Long Beach Island Real Estate Investment

LBI Real Estate

The LBI real estate market has witnessed substantial improvement since Hurricane Sandy made landfall at the end of October 2012. Both the number of homes sold in the average sales price has been on the rise and improvement in the market has prompted many to invest in the LBI real estate market. Long Beach Island real estate investment offers some significant advantages over other investment vehicles, however it is always important to remember that like any investment, the LBI real estate market is subject to high points and low points. That said, the LBI real estate market offers immediate income potential coupled with long-term.

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

Long Beach Island Real Estate Investment

There are three factors that help to make the LBI real estate market a relatively safe investment. They are:

  • Summer rental income
  • A storm ready community
  • Limited supply with high demand

The ability to rent a home for immediate income is perhaps the strongest safeguard the LBI real estate market has to offer. Just about every home on LBI has rental potential, and it is very common to see the rental income generated cover most if not all of the expenses of owning a home even with a 20% down payment. This summer rental income potential has to significant benefits. The obvious benefit is the ability to generate income almost instantaneously. The second, and more subtle yet significant benefit, is the ability for summer rentals to stave off short sales and foreclosures. There is perhaps no greater drain on a real estate market than distressed sales and even in the darkest steps of the great recession, the LBI real estate market witnessed very few short sales or foreclosures. This in no small part was due to summer rentals being able to help cover the cost of owning a home on Long Beach Island and eliminate the need to sell in a distressed situation. The absence of these short sales and foreclosures helped to keep the LBI real estate market strong and can act as a safe investment.

In the wake of Hurricane Sandy, Long Beach Island has witnessed an unprecedented period of renovation and new construction. Many of the traditional Cape Cod style homes that were previously at risk for flooding have been elevated above base flood elevation or knockdown and a new home built in their place. In either case, Long Beach Island is more prepared for a storm and should another storm brewing flooding, the damage caused to the area will be dramatically less than witnessed and Hurricane Sandy.

Lastly, Long Beach Island has for 200 years been a popular summer vacation destination. Much of this has to do with the unique feel of LBI, being very family-friendly and lacking a boardwalk. The location on LBI is convenient to New York, Philadelphia, and North Jersey which holds broad appeal for those looking for a summer vacation home.

Investing in the LBI Real Estate Market

Buying a home for vacation or investment purposes on Long Beach Island can offer some unique advantages. Apart from the financial aspect, owning a vacation home is an exciting experience and one that serves to build lasting memories. A home in the LBI real estate market can be an excellent investment alternative to more traditional vehicles offering both immediate income and long-term growth. For more information about Long Beach Island real estate investment, contact meĀ 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