Long Beach Island NJ Real Estate | LBI Real Estate Market | Long Beach Island New Jersey
Nathan Colmer 609.290.4293

 

Long Beach Island Vacant Land

 

 

 

 

 

Long Beach Island Vacant Land | Long Beach Island NJ Real Estate | LBI Real Estate Market

 

Vacant Land in the LBI NJ Real Estate Market

There are still a number of vacant lots for sale in the Long Beach Island real estate market that are ripe for re-development. It is important to understand the different zoning laws and regulations for each town so you can know what you area able to build before making an offer. One of the best investments in 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. 

 

 

 

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 Long Beach Island NJ Real Estate | LBI Real Estate Market
 Long Beach Island NJ Real Estate | LBI Real Estate Market
 Long Beach Island NJ Real Estate | LBI Real Estate Market
 Long Beach Island NJ Real Estate | LBI Real Estate Market

 

 

Long Beach Island Vacant Land | Long Beach Island NJ Real Estate | LBI Real Estate Market

Building Lots on Long Beach Island NJ

It is important to remember that when it comes to building lots on LBI, this often does not mean buying a vacant lot. Rather, it means buying an older home and knocking it down to make way for new construction. There are a few things to keep in mind when looking for building lots:

  • Lot size is essential. the minimum lot width you should look for is 40 feet.
  • The cost to demolish a house will usually run around $9,000-$10,0000 and an additional $1,000-$2,000 if asbestos siding is present at the property
  • The cost of the lot should be about 2/3 of the cost of the total project

Apart from location, the lot size will be the driving force in the value of the building lot. An undersized lot will often require a variance to build and will restrict the size of the house that can be built. In most towns on LBI, the side yard setbacks are 4″"and 11" meaning on a 40″ wide lot, you can build a 25"wide house.  Ideally, you want a width of at least 50 feet so you have more flexibility in the design of a house as this will give you a 35" wide house

 

 

 

Long Beach Island Vacant Land | Long Beach Island NJ Real Estate | LBI Real Estate Market

Less Building Lots on Long Beach Island

Less building lots on Long Beach Island will have several impacts on the LBI real estate market:

  • Real estate speculation will begin to take the form of renovating homes built 20 or so years ago
  • Vacant land and tear downs will see an increased number of bids as supply diminishes
  • Overall, the impact of so many new homes on the market will increase the value of the LBI real estate market

As there are fewer and fewer tear downs, investors in the real estate market will begin looking for alternative options. One strong possibility for these alternative investment is in the renovation of elevated homes that were built in the last 20 year or so. These homes will most likely meet the favorable elevation requirement and only require cosmetic updates. This will make for a rather easy project that can offer a strong return on the investment.

 

 

 

Long Beach Island Vacant Land | Long Beach Island NJ Real Estate | LBI Real Estate Market

Buying a Tear Down on Long Beach Island NJ

While there are still a number of vacant lots on Long Beach Island, there is a substantial amount of new construction that takes place from buying a tear down on Long Beach Island. If the intention is to tear down the house, the condition of the property is not as important as the following:

  • Lot size on Long Beach Island
  • Distance between the neighboring houses and the property lines of the tear down property
  • Location of the structure on the property (if it is an oceanfront property this is VERY important)
  • Corner lots have different building envelops than non corner lots on Long Beach Island

Lot size is perhaps the most obvious and one of the most important factors when considering Buying a Tear Down on Long Beach Island NJ. The size of the lot directly impacts the size of the house that can be built as well as what external structures can be built on the property (for example a pool as this counts as lot coverage too). While specifics of zoning and planning will vary between the different towns on Long Beach Island, generally speaking the minimum conforming lot size is 4,000 sq. feet with 40” of frontage. Lots that do not meet this requirement may need additional permitting and perhaps a variance from local zoning laws. The width of a lot will have a great impact on the ability to build a new house on Long Beach Island.

 

 

 

Long Beach Island Vacant Land | Long Beach Island NJ Real Estate | LBI Real Estate Market

New Construction and the Real Estate Market on Long Beach Island NJ

New construction sounds like an intimidating prospect, especially when the majority of homeowners on Long Beach Island are about 2 hours away, but the process can be very rewarding.  When building a new home on Long Beach Island, there are a few preliminary items to consider:

  • Use a stock floor plan with minor modifications
  • Discuss the project with several contractors to make sure the price is correct
  • Make sure you do not “overbuild” on the lot

A surprisingly expensive portion of building a new home can be the floor plans. By using a stock floor plan and customizing it to your taste, you can save a substantial amount of money. Most builders and architects have floor plans that they have used in past projects which allows to you save a lot of money by using them! In addition, this allows you to see a finished project and get an idea of what your new home would look like.

 

 

 

Long Beach Island Vacant Land | Long Beach Island NJ Real Estate | LBI Real Estate Market

Construction Loans on Long Beach Island New Jersey and the LBI NJ Real Estate Market

Construction loans differ from a conventional loan in many ways. The terms and conditions of a construction loan will depend greatly on the individual applying for the loan and the institution offering the product but in general there are a few “standards” to go by.  For example:

  • Construction loans on Long Beach Island NJ and elsewhere tend to be interest only loans with the balance due upon an issuance of a Certificate of Occupancy
  • Construction loans typically carry a slightly higher interest rate and may be an adjustable rate mortgage
  • Money is not given up front but rather in a series of “draws” for each stage of the construction project. It is common for the homeowner, the builder and the lender to establish this timeline prior to the loan being granted.
  • Construction Loans on Long Beach Island New Jersey are not meant to be permanent. They are designed to fit a specific need and then a new mortgage be taken out on the property (which is typically a conventional loan)

 

 

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Nathan Colmer

The Van Dyk Group

Cell: 609.290.4293

Toll Free: 800.222.0131

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