Brigantine real estate blog

New Jersey real estate as investment

New Jersey Real Estate Investors are not scared off by any kind of talk of a "Bursting Bubble"

A recent survey prepared by the National Association of Realtors has determined that over 23% of all homes purchased last year were acquired as investment properties.

Many of the newer real estate investors involved in this survey, got into the market after witnessing their stock portfolios stall and wither, while at the same time, their homes were appreciating in value like never before and their home equity was soaring.

Both East Coast and West Coast Investors continue to buy up properties at an unprecedented pace and continue to ignore warnings issued by economists, analysts and even Alan Greenspan, of an overheated real estate market and pending slow down. Vacancy rates remain higher than normal in some areas, but builders and developers continue development at an all time record with new homes, as in New Jersey, condos and town homes selling (and the property appreciating) like never before in history.

Brigantine New Jersey Second Home Owners Celebrate

All of the Brigantine New Jersey summer vacationers who have second homes and those who have Vacation homes for sale in Brigantine were  relieved with the news that the scheduled beach replenishment project has been delayed from the end of July until at least September.

The delay is due to the July hurricanes in Florida. It seems that all of the dredging and replenishment projects were delayed there because of the storms, thus all the equipment needed is still in Florida

The City of Brigantine was rushing to get the replenishment started before federal funding ran out. Because of these natural disasters to the south, the government cannot penalize Brigantine for the delay. So our beautiful Jersey Shore remains undisturbed for the remainder of the Summer.

Is a Housing Bubble going to affect Jersey Shore real estate

The Scary  Bubble

"Housing bubble” has such a dramatic ring to it, and it sounds scary.  Plus, these words sell newspapers.

Is it possible that house values in The Jersey Shore area will decline soon? No one can really predict. However… we can learn from history.

In the '70s property values appreciated faster the in the  recent three years.  In the following 10 years home appreciation doubled. Beginning in the late 80's we saw property values decline for about five years. A total of about 12%.

What’s different this time? Numbers, expressed in dollars, the recent increases in value seem extreme.  As a percentage of the home’s cost, appreciation has been more rapid in the past and there could be many more years of appreciation in the future.But no one knows.

Housing Bubble Protection:

If no one can predict if or when prices will decline or by how much, how do you protect yourself? You do it the “old-fashioned way.”

When you buy a home, buy one you intend to own for a long time.  The cost of a house isn’t just the price you pay for it and price may not be as important as your carrying costs.  The largest cost is your mortgage payment.  With low interest rates, people can afford more expensive houses because their payments will be low.  If possible, skip the “first-time homebuyers” house and buy the “move-up” house.  That saves you one move, saves you costs, and puts you in a position where you don’t have to sell.

You see, how much your house goes up or down in value each year doesn’t make any difference at all – until you have to sell it.

Then, if you’re selling in a slow market – you’re also buying in a slow market.  If you’re buying in a hot market – you are also selling in a hot market.  It equals out, provided you have equity enough to make your next purchase.

But if you’re buying a home to “flip” it in a year or two and the market does turn against you, you could be hurting – providing you have to sell.   If you're buying just before a down market and you get transferred or relocated, you could be hurting, too - providing you have to sell the home.

Conclusion:

There probably is not a “housing bubble” in the way that there was a Nikkei bubble or a dot.com bubble.  However, it is quite likely that there will be some time in the future when values decline, at least in certain areas.  It could be in a year or it could be in sixteen years.

How did most people cope in the past? They rode it out. They didn’t sell.  Later, prices recovered and bypassed previous highs.

Right now, those are some pretty happy folks.

Pete & Bev Petridis
www.petepetridis.com
Pete's Cell: 609-377-4023
Bev's Cell:609-352-9257

Brigantine Realtor advises the New Jersey home buyer

Sources of Down Payment

As you search for your New Jersey Shore new home, it hits- the reality of how much ready cash you will need to purchase that Jersey Shore home of your dreams.

One of the most appreciated services a Brigantine Realtor offers is helping buyers find the source of the down payment to buy their new home, especially when the potential buyer thought they couldn’t afford it. Below, you will find a partial list of some potential sources for a down payment.

1. Cash value life insurance
2. Gift from relatives
3. Equity in a car or other asset
4. Year-end bonus

There are other sources besides the ones listed. If you are unsure about the practicality of any of these, please feel free to call Pete or Bev Petridis or send us an email at any time. We are here to help you.

Pete & Bev Petridis
www.petepetridis.com
Pete's Cell: 609-377-4023
Bev's Cell:609-352-9257

New Jersey News

With all the new development in New Jersey both in new home starts and commercial development, some Jersey Shore residents are concerned about the recent Supreme Court ruling concerning eminent domain property seizures.

Local, State and Federal lawmakers in many states are busy studying the eminent domain laws and are beginning to write legislature to safeguard home and small businesses.

Supporters of the Supreme Court ruling insist that constituents can simply vote against elected officials that invoke eminent domain for economic development.

Perhaps the best a New Jersey real estate owner can do at this time is to write both your State and Federal legislators. Second, be vigilant in monitoring the decisions of elected local, state and federal lawmakers.

New Jersey Realtor awards scholrships

Twenty-seven New Jersey high school seniors were awarded scholarships from the New Jersey’s realtor association which total $38,000. These high school seniors were among 123 applicants. Since 1969 the New Jersey realtor’s association has awarded $412,000 in scholarships to deserving students. 

The scholarships are open to New Jersey seniors who will be attending an undergraduate institution, students currently enrolled in undergraduate institutions and students pursuing graduate studies.

New Jersey Realtor awards scholrships

Twenty-seven New Jersey high school seniors were awarded scholarships from the New Jersey’s realtor associationwhich total $38,000. These high school seniors were among 123 applicants. Since 1969 the New Jersey realtor’s association has awarded $412,000 in scholarships to deserving students. 

The scholarships are open to New Jersey seniors who will be attending an undergraduate institution, students currently enrolled in undergraduate institutions and students pursuing graduate studies.

Brigantine New Jersey home appreciation highest in New Jersey

Zip: 08203
Brigantine, New Jersey real estate value rose one hundred thirty present in the past 5 years. The highest in appreciation in medium priced home values in the entire New Jersey. The study was conducted by Fiserv, Case Shiller and Weiss, found that all properties on the Jersey Shore dominated the study.

On receiving this designation, Brigantine, New Jersey Mayor Phil Guenther had the following to say, ”It’s flattering to receive this designation as the hottest community in New Jersey in terms of medium real estate appreciation. But more importantly, it means Brigantine is a community where the quality of life is high, where more people want to live and raise their families or invest in summer residences and businesses. We don’t need a survey to tell us that Brigantine is a premiere community. Our excellence in manifested in our safe and clean neighborhoods, meticulously kept homes, lawns, gardens and businesses and in the residents who care about their neighbors and the well being of their community. In addition, we have a community where police, fire and other municipal services are of the highest quality and where our schools have been recognized amongst the best in New Jersey. I’m pleased about our designation, but Brigantine is more than just bricks and mortar and land prices. It’s about family relationships, friendships and community pride. Those assets are priceless. "

That Brigantine New Jersey city manager, Jim Barber added that by any measure Brigantine New Jersey real estate growth of medium priced home prices has been spectacular in the past five years. And reminds all that it is projected that the Brigantine medium priced housing will increase ten to fifteen percent this year.

New Jersey real estate Mortgages

It was not long ago that first time home buyers had to wait to buy their home until they could save 10 to 20%  of the purchase price of the home for sale toward the down payment plus the expense of very high closing costs. This is not true today, as more and more lenders are offering legitimate no down payment mortgage loans.

According to a survey conducted by the National Association of Realtors a high 42% of new home purchasers and 13% of repeat buyers purchase their home with 100% financing……meaning no money down.

In the South New Jersey real estate market there are many lenders who are offering this option. Now the young family can have their dream of home ownership fulfilled while their family can enjoy all the advantages of home ownership.

New Jersey Shore Homes

Many Jersey Shore residents are taking advantage of the real estate boom of the last few years and moving to the mainland. In South New Jersey moving to the mainland means that you still have the advantages of the Jersey Shore , because the shore  is only a few short miles away.

Why such a boom? Because of the buying spree for second homes on the shore. The old supply and demand of the free enterprise system is in motion.

Just take a look at this data:
-Brigantine real estate nearly doubled in the last four years
-Ocean City real estate has more than doubled
$800,000 plus

By selling a home on one of the Jersey barrier islands, such as Absecon and relocating a little inland, you can upgrade your housing in such neighborhoods as Meadow Run development in Egg Harbor Township for the same monthly payments with lower property taxes.

Ventnor, NJ home on corner lot
5 bedroom, 4 bath/1 half Air Conditioner: Central; Appliances: Dishwasher, Dryer, Gas Stove, Refrigerator, Washer; Basement: 6;' Or More Head Room, Finished; Driveway: Concrete; Fireplace: Built-In, Gas Log; Floor: Hardwood, W/W Carpet; Heating: Hot Water, Oil; Interior Features: Kitchen Center Island, Dining Room, Laundry/Utility Room, Pantry, Disposal; Location: Corner; Outside Features: Deck, Porch; Parking/Garage: Two Car, Detached Garage; Sewer: Public Sewer; Siding/Exterior: Brick, Concrete; Water: Public; Water Heater: Gas;
$1,399,000

Margate, NJ housing
$859,000

Egg Harbor Township, NJ
5 bed, 3 bath/1 half
Air Conditioner: Attic Fan, Ceiling Fan; Appliances: Dishwasher, Gas Stove, Microwave, Self Cleaning Oven, Refrigerator; Basement: 6;' Or More Head Room, Finished, Full, Inside Entrance, Outside Entrance, Plumbing; Driveway: Concrete; Fireplace: Built-In, Family Room; Floor: Hardwood, Tile, W/W Carpet; Heating: Forced Air, Gas-Natural; Interior Features: Cathedral Ceiling, Storage, Walk In Closet, Breakfast Nook, Dining Room, Eat In Kitchen, Laundry/Utility Room, Library/Study, Loft, Recreation/Family, Storage Attic, Blinds, Disposal; Outside Features: Curbs, Paved Road, Sidewalks; Parking/Garage: Two Car; Sewer: Public Sewer; Siding/Exterior: Stucco, Vinyl; Storms/Screens: Screens; Water: Public; Water Heater: Gas;
$549,900

referer=/homesrch.htm&action=Search&hometypes%5B%5D=1&nrc=46">Ocean City, NJ
This 4 bedroom, 2 bath/1 half, immaculate brick colonial has full brick fireplace and a new skylight in family room. The eat-in kitchen leads to a beautiful sunroom. This Randolph Township house also has a finished basement, new roof & driveway, a main floor Laundry.
This great family home sits on a 1/2+Acre with professional landscaping, all this and an indoor barbecue pit.
$709,000

Brigantine New Jersey Home Values

Even after the information meetings concerning the upcoming Brigantine, NJ property reassessment/revaluation project [undoubtedly revaluation is a new spin word to lighten the blow!] many residents are concerned about their property taxes going up in the near future.

A new Brigantine resident who has just purchased a newly constructed home, is concerned because his entire family budget for the next few years was calculated on the price of purchase and the property taxes that were calculated at the time of purchase. Have no fear! The fact is anyone can contest their reassessment if they believe it is incorrect or will cause hardship and the county will listen.

This property reassessment is mandated by the state, it is not our City government's fault,  nor the county government's. It just must be done under state law. And our City must abide by the law.

Brigantine Realtors have been through this before, call an experienced Realtor like Pete Petridis at Century21 O'Donnell at 866-985-2121 for his expertise.