Nathan Colmer | Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Buying a home in the Beach Haven West real estate market can offer some excellent opportunities for personal use and long term investment. Thanks to Hurricane Sandy and a quick recovery, the Beach Haven West real estate market has seen a period of growth and strength. When looking to buy a home in the Beach Haven West real estate market many buyers ask about different financing options. This is especially true if you are looking for a more affordable option to the high prices on Long Beach Island!
The real estate market in Beach Haven West offers a variety of options for buyers and investors. Since Hurricane Sandy, there have been an abundance of vacant land sales and storm damaged homes that make way for impressive new construction. Likewise, there are fully renovated homes and magnificent new construction properties on the market for sale. There are even some condominiums and duplexes. With the Beach Haven West Real Estate Options listed above available to buyers, it can be difficult to what determines a good deal.
While there may never be such a thing as a perfect home, there are some important considerations that can determine the best option for a Beach Haven West real estate buyer:
Like an investment, buying a home in the Beach Haven West real estate market carries risks and rewards. Before committing to any transaction, it is helpful to understand some of the more common concerns we see such as:
Most buyers in the Beach Haven West real estate market have some concern about flood insurance rates. This is a very important budgetary item for buyers and one that should be thoroughly understood. The good news is, since Hurricane Sandy there has been an unprecedented wave of new construction and these new homes have been built to exceed the current flood elevation requirements. This should help keep the cost of insurance lower in the future. The second two concerns, future flooding and declining property values, are both partially answered by the above stated construction. While any coastal community including Long Beach Island is subject to occasional flooding from storms, the new building methods that have been employed should limit that damage. This construction should also keep home prices in the area relatively stable. Whenever a significant investment is made in a local real estate market, home prices generally will rise in the absence of other external factors. The Beach Haven West real estate market has been witnessing this trend as well.
Understanding mortgage rates is an essential step the buying in the Beach Haven West real estate market. We can help you speak to a lender to understand how your specific financial situation translates to a home purchase.
As rates go up, the amount of home you can afford goes down. For every 1.00% increase in interest rates, your buying power decreases by about 10.00%.
For example, let’s say you can afford $1,194 on your monthly principal and interest payment. With a 30-year fixed loan, a 20.00% down payment, and an interest rate of 4.00% (assumed annual percentage rate [APR] of 4.053%*), you could borrow $250,000 to purchase a home around $312,500.
But if rates go up to 5.00% (APR 5.056%*), the amount of home you can afford decreases to $278,025, causing you to lose $34,475 of buying power. That’s a lot of buying power!
Higher Rates = More Money Spent On Interest and less on the home itself
A higher interest rate also means you’re likely to spend more money on interest, causing you to pay more for your home in the long run.
When considering buying a tear down in the Beach Haven West real estate market there are a few important points to consider.
Lot size and distance between the neighboring houses can have some dramatic impact on the style and size of a home that can be built. Lot sizes are fairly standard in Beach Haven West with many homes being situated 50×80 foot lot. This will typically allow for a home in the 2,000 to 2,200 sq foot range plus decking. There are larger lots as well which can accommodate larger homes When looking at lots, it is important to also consider the distance between neighboring houses and setbacks must be maintained which can limit the size of a home that can be built. The condition of the bulkhead is additionally important as older bulkheads may require replacement. This can be a substantial expense costing several hundred dollars per lineal foot which can easily deplete a substantial portion of the construction budget. Purchasing a home with a newer bulkhead, constructed of pressure-treated lumber or vinyl, may in fact save money in the long run. Lastly, the location is paramount. The distance to the Bay must be considered for nearly every home in the Beach Haven West real estate market as some homes have a considerable area to navigate to reach the open bay. In addition, there are two bridges in Beach Haven West that can limit navigation market.