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.
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:
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
Less building lots on Long Beach Island will have several impacts on 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.
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 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.
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:
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.
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: