The Long Beach Island real estate market is predominantly comprised of second homes and vacation properties. This is vastly different than a primary market, and opens up a wide range of options to would be sellers. Usually, in a primary market, when you have outgrown or no longer use a home it is best to sell the property. However, in the Long Beach Island real estate market, if an owner would prefer not to sell their home, rentals are a very real possibility. Deciding to rent or sell your home in the LBI real estate market depends on your personal situation and your future plans. Renting a home can have several advantages such as:
The rental income can cover most or all of the expenses.
The property should appreciate overtime.
When renting a home with a mortgage, the tenants will essentially be paying down your property.
Whenbuying a home in the LBI real estate market, flood insurance is a topic that comes up very frequently. Since Hurricane Sandy, flooding and thecost of flood insuranceare in the forefront of nearly every buyer andseller’smind onLong Beach Island. While it is extremely important to understand how a flood insurance policy is rated and what areas of Long Beach Island are more or less prone to flooding, it is also important to understand what is covered by flood insurance. Long Beach Island flood insurance coverage limits are an essential step to protecting your investment in theLBI real estate market.
The real estate market onLong Beach Islandhas shown strong activity over the past several years.Locationcontinues to be one of the primary determinants of value in the LBI real estate market, and ocean block homes are always in high demand. The close proximity to the ocean and the potential for water views continues to draw strong attention. Ocean block home sales in theLong Beach Island New Jersey real estate marketclearly reflect these trends.
One of the bestinvestmentsin the Long Beach Island real estate market can be building a new home. New construction not only allows for the complete design and personalization of a home, but if handled properly, anywhere from 20% to 30% immediate equity in the finished product as well. Of course to be able tobuild a new home, you first need a site to build on! Therefore, it is helpful to understandvacant land salesin theLong Beach Island New Jersey real estate market.
TheLBIreal estate market is certainly not inexpensive, with the average price of asingle-family hometrading around $1 million. With such an intimidating price point, it is not surprising that manybuyersfeel they are priced out of themarket. The good news is there are a number of excellent opportunities for Long Beach Island real estate single-family homes under $500,000 withaffordable ownership costs. While it is true that many of these homes in this price point are teardowns and sold for land value only, there are some outstanding end-user homes too.