Ways to Use Equity in the LBI Real Estate Market

High Tides Digital Marketing
Apr 14, 2022
2 min read

How to Use Your Long Beach Island Home's Equity

Long Beach Island Real Estate

Prices and values in the LBI real estate market have risen considerably over the last few years. Even before COVID, the average cost of a single-family home on Long Beach Island was rising steadily. The demand caused by COVID only increased this price appreciation. Current homeowners in the LBI real estate market are likely sitting on a sizeable equity position, and there are ways to leverage this position.

Ways to Use Equity in the LBI Real Estate Market

Below are a few ways that current LBI homeowners might be able to leverage their current equity position. Everyone's financial situation is unique and financial planning should always be done with the aid of a trusted financial advisor, so be sure to run the following suggestions by such an individual.

Use the current home value to trade up or trade down: This is especially true for an older home that might be considered a "knockdown." The ability to build a new home is a significant advantage in the LBI real estate market. A current homeowner might be able to sell their home quickly and walk away with a sizeable profit which can then be used to buy something else. This can be risky, however, since prices are still moving higher. If a move is not made simultaneously, there is a risk of decreasing buying power in the LBI real estate market.

Use the equity to build a new home: This is perhaps the best suggestion I can make! If you own an older home that is in need of renovation or rebuilding, taking funds out of the current equity position can often allow you to build a new home with a low, fixed-rate mortgage. The best part is that this new home should have an even larger equity position, usually in about 20%-30% or more of market value.

Take advantage of the quality position to reduce debt and expenses: If you have other, higher interest loans, pulling money out of your LBI home and using those funds to consolidate your debt could be an outstanding financial play. This could save a great deal of money each month that could be used for other purposes.

How to Use Your Long Beach Island Home's Equity

The LBI real estate market is strong, and prices seem to be continuing to rise (albeit at a slower pace than we have seen). Using this application and using the funds to make a better financial play can be highly advantageous. In short, the current equity found in your Long Beach Island home can help you achieve other life goals! The best way to determine how much you have to work with is to obtain a CMA (comparative market analysis) from a local agent and discuss the potential mortgage options with a lender. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.