One of the best areas of investment in the LBI real estate market can be found in the construction of a new home. Building a new home on Long Beach Island offers many advantages, including the ability to customize the design to fit your tastes. Assuming the property was purchased at the right price and the construction budget is realistic, immediate equity in the finished home should be realized. There are some excellent opportunities to build a new home on LBI, but first you need a site to build.
When buying Vacant Land on Long Beach Island it is important to understand what to look for. Above all else, the location will dictate the sales price. Homes on the oceanside and oceanblock will typically sell for about 15%-25% more than their bayside equivalent and the new home built on the lot will show a similar difference in price. The size of the lot must also be considered and should be able to accommodate new construction without a variance from the town. For most areas of Long Beach Island, this will mean a minimum lot of 40×80 or 40×100 but ideally, a buyer should seek a lot with a width of about 50 feet in order to have more flexibility in design and construction.
Building a new house in the LBI real estate market can be a very worthwhile and profitable investment. Construction prices will typically run between $170 and $190/ sq. foot for quality new construction with the finishes typical of new homes in the area. When looking at a construction budget of $275,000-$550,000 for most home plans and adding in the cost of the land it is possible to have a brand new home on Long Beach Island for about for much less than the market value of the new home will be. In most cases you should have around 20%-30% equity in the finished making for a good investment with instant equity!
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.
When looking at Buying a Tear Down on Long Beach Island NJ there are a few important points to consider in all LBI real estate transactions. 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.