Two Reasons to Buy a Home in the LBI Real Estate Market Today
- High Tides Digital Marketing
- May 27, 2024
- 3 min read
Long Beach Island NJ Real Estate Buying Opportunities
Undoubtedly, the LBI real estate market is challenging right now. With fewer homes for sale on Long Beach Island and the higher cost of owning a home, many buyers wonder if this is the right time to buy a home in the LBI real estate market. While this is not the right time for all buyers to buy a home, two compelling reasons exist for owning in the LBI real estate market. First, over time, the LBI real estate market has proven to be a very stable investment, and second, the robust LBI real estate market allows for future development and equity growth.
Two Reasons to Buy a Home in the LBI Real Estate Market Today
One of the most significant negative forces on the housing market is higher interest rates, and clearly, rates have been on the rise. That said, the LBI market has never been that sensitive to interest rate movement, which has helped keep prices stable and rising. Even nationwide, most markets are still seeing a normal rate of appreciation in the housing market, so this trend is not unique to the LBI real estate market. Now that mortgage rates are dropping, we expect to see even more demand, which could increase prices. Owning a home is a long-term play, and over time, the Long Beach Island real estate market has seen consistent and significant growth. While some could argue that this lends itself to a bubble, one must understand that the nature of homes on LBI has changed dramatically over the last decade. There has been immense development all over LBI, and the "rising tide lifting all ships" mentality comes into play. That leads to the second reason for buying a home on Long Beach Island. The LBI real estate market offers unique ways to grow equity and net worth. The most tried and true method is to buy a home and rebuild it with a new, larger home. This kind of project is something I specialize in, and our projects see around 20%-30% equity growth once finished. That is an outstanding rate of return in a very short period of time, and that position should only grow over time. This investment can also help with summer rental rates since the total capital investment would be lower than buying something in the open market, but the rental rates would align with the new home's value.
Long Beach Island NJ Real Estate Buying Opportunities
Buying a home in the LBI real estate market is an investment. While nobody wants to buy at the top of any market, nobody knows what the top truly is. Only by investing in a home and finding a way to make the market work for you can you benefit from real estate on Long Beach Island. I should point out that this mindset reduces a purchase on Long Beach Island to a math equation when it is, in fact, so much more. Living on LBI offers unparalleled experiences and memories for a family. Even if a home is used and rented for part of the year, owning a piece of LBI can make financial sense and provide an outlet for family fun. For more information about Long Beach Island or about the LBI real estate market please do not hesitate to contact me.
By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
