Vacant Land and Tear Downs in the LBI NJ Real Estate Market on Long Beach Island
New Construction in the LBI Real Estate Market on Long Beach Island New Jersey
Building a new home on Long Beach Island can be a very smart investment opportunity! Hurricane Sandy has created some unique opportunities with storm damaged homes that can be demolished to make way for a new home or for the re-sale of vacant land. Many homeowners who decided to not rebuild their storm damaged homes chose to clear their lot for building and sell the property for land value. This has created some excellent prospects for the construction of a new home in the Long Beach Island real estate market. While Vacant Land on Long Beach Island still makes up a small percentage of the available inventory, an understanding of the current market trends can help make for a better investment in the real estate market on Long Beach Island.
Vacant Land on Long Beach Island
Between September 1st 2013 and March 1st 2014 Vacant Land on Long Beach Island real estate sales were broken down as follows:
- There were 10 vacant parcels of land sold in the LBI New Jersey real estate market
- Prices of vacant land ranged from $210,000 to $875,000
- There are, as of the date of writing this article, about 60 vacant parcels of land for sale on Long Beach Island and about 13 vacant lots under contracts
This amount of activity is in stark contrast to market trends in 2011 and 2012. Vacant land made up a very small percentage of the LBI real estate sales market but with Hurricane Sandy, new opportunities have been presented. With an average of almost 2 transactions per month for the past 6 months, activity levels for Vacant Land on Long Beach Island are holding pace with that of condo and duplex sales. This shows that homeowners and investors are seeing the chance to purchase a suitable piece of land and design their dream summer home!
When buying Vacant Land on Long Beach Island it is important to understand what to look for. Above all else, the location will dictate the sales price. Homes on the oceanside and oceanblock will typically sell for about 15%-25% more than their bayside equivalent and the new home built on the lot will show a similar difference in price. The size of the lot must also be considered and should be able to accommodate new construction without a variance from the town. For most areas of Long Beach Island, this will mean a minimum lot of 40×80 or 40×100 but ideally, a buyer should seek a lot with a width of about 50 feet in order to have more flexibility in design and construction.
Buying Vacant Land on Long Beach Island and Building a New Home in the Long Beach Island Real Estate Market
Building a new house in the LBI real estate market can be a very worthwhile and profitable investment. Construction prices will typically run between $160 and $170/ sq. foot for quality new construction with the finishes typical of new homes in the area. When looking at a construction budget of $250,000-$350,000 for most home plans and adding in the cost of the land (averaged out to be about $400,000) it is possible to have a brand new home on Long Beach Island for about $700,000-$800,000. Depending on the location, the finished home should be worth about $1,000,000 making for a good investment with instant equity! For more information about buying Vacant Land on Long Beach Island or building a new home in the LBI NJ real estate market, feel free to contact me and I will be happy to answer any questions you have!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org