Thinking Of Investing On Long Beach Island“LBI”?


Real Estate Investing 101

Investing in real estate can be a lucrative venture, but it requires careful planning and strategic decision-making. Here are the fundamental steps in real estate investing:

  • Determine your investment objectives, whether it's generating rental income, long-term appreciation, or a combination of both.

  • Gain knowledge about different types of real estate investments, such as residential single-family properties, multi-family, condos, commercial properties, mixed-use, and seasonal rental properties. Understand market trends, financing options, and legal considerations. Familiarize yourself with the island, understand the seasonality of the area, learn about each town, the rental market/process, insurance requirements, and more.

  • Assess your financial situation and establish a budget for your investment. Explore financing options, such as traditional mortgages, private lenders, or partnerships. Have a plan in place in case your property underachieves. Make sure not to over-extend yourself. Keep in mind, certain property types may require different mortgages.

  • Research potential properties that align with your investment goals and budget. Consider factors such as location, market demand, property condition, and potential for growth. As your agent, I will assist greatly in this step providing immediate knowledge in these fields.

  • Thoroughly evaluate each property to mitigate risks and maximize returns. This includes inspecting the property, reviewing financial documents, analyzing market data, and assessing potential renovation or repair costs.

    Long Beach Island investments in general provide the greatest return and appreciation based on property location, age, size, flood area, and town. By using an experienced local agent, such as myself, you will have immediate access to the necessary knowledge in order to make an informed decision.

  • Once you've found a suitable property, make an offer based on your research and assessment. As your agent, we will look over comparable properties to determine what the offer should be, while considering current market trends. We will then negotiate terms with the seller to reach a mutually beneficial agreement.

  • Finalize your financing arrangements and complete the necessary paperwork to close the transaction. Work with real estate professionals, such as attorneys and agents, to ensure a smooth closing process.

  • If you're investing in rental properties, oversee the day-to-day management of your assets. This includes finding tenants, collecting rent, handling maintenance and repairs, and addressing any tenant concerns. While many rental properties on island only rent in the summer season, it is crucial to maintain your property. This will only help you as a landlord and homeowner looking to maximize appreciation and equity.

  • Stay informed about changes in the real estate market, economic trends, and regulatory developments that may impact your investment. Adjust your strategy accordingly to maximize returns and minimize risks.

  • Regularly evaluate your investment portfolio to assess performance and identify opportunities for improvement. Consider diversifying your investments across different properties or asset classes to mitigate risks and achieve long-term growth.

By following these steps and staying informed about market trends and best practices, you can build a successful real estate investment portfolio over time.

Purchasing an Investment Property

Many individuals purchase real estate on Long Beach Island not only as a first or second home, but also as a business/rental opportunity. Contact me today to learn more about investment properties on LBI and whether it is the right decision for you!

  • The most common type of investment property on LBI is used for seasonal/year-round rentals. These properties often can be single-family, multi-family, condos, or mixed-use properties. The island is known for its steadily growing sales & rental market boasting a large boom in demand and price over the past 10+ years. To put this into perspective, the average weekly rate for a rental property in peak season (June-August) is roughly $6,000. This number has drastically increased over the years, displaying an average rent increase of about 45%-50% since 2018, adding to the already strong and profitable LBI rental market.

    At the same time, home prices have increased over the last decade tremendously. While this may seem daunting when purchasing a property, it is important to understand your property’s value will appreciate over the years building equity. For example, the average sales price for homes sold on island for the year of 2016 was $899,519 while in 2022 it was $1,679,641. This is an increase of almost 87% in just 6 years! These numbers reflect only the average sales price of residential homes sold in 2016 and 2022.

    Much goes into the due diligence and process of finding the right investment property for you. Reach out to me to learn more or start your search today!

  • Commercial Use Properties on LBI can be quite lucrative as a landlord or property owner. The island offers many opportunities to purchase a commercially zoned property in order to establish a business or fill the property with a tenant. Usually, commercial tenants sign leases for 3-5 years on LBI, offering a potentially more stable rental income than single-family. When valuing a commercial property it is important to properly engage in thorough due diligence of the property history, past earnings, annual debt service, building operation costs, “cap rates” or return, and more. As your Realtor I will help guide you through this process. Reach out today to learn more about this!

  • Mixed-use properties are relatively common on LBI. Many of the commercial buildings for sale also include a bonus residential space for you to either occupy or rent-out to a tenant. Properties such as these can offer a high-rate, long term tenant in the commercial portion of the property while simultaneously allowing for a long term winter or peak-rate summer rental.

LBI Investment Property. Learn about investment properties on Long Beach Island, NJ.

Why Buy on LBI?

  • Overall Price Stability and Appreciation

    Long Beach Island, NJ, has a history of stability in its real estate market and consistent home price appreciation. For example, in 2013, the average sales price was $817,732 with 403 sales. By 2023, this had climbed to $1,938,974 with 372 sales, reflecting a nearly 140% increase in sales prices over 10 years and 65% in just the past 3 years.

    Even during challenging periods, such as the 2007-2009 housing crisis, LBI’s market proved resilient. While national home values dropped over 20%, LBI saw only a 10% decline at its peak.

    The island’s appeal is further strengthened by increasing property values, steady demand, and ongoing new construction—much of it originally driven by Super Storm Sandy recovery efforts and flood plain management rules. These developments not only enhance individual properties but add value across the island. Additionally, LBI experiences minimal foreclosures, short sales, and distressed sales, solidifying its reputation as a sound investment.

    As with any major purchase, timing and expertise are key. Working with an experienced agent like myself ensures you’re equipped to make informed decisions. While past trends don’t guarantee future outcomes, they provide valuable insight into potential gains and cash flow.

  • The LBI Rental Market

    The most common investment properties on LBI are used for seasonal or year-round rentals, including single-family homes, multi-family units, condos, and mixed-use properties. Commercial properties, such as retail spaces, restaurants, and mixed-use buildings, also present strong investment opportunities due to the island’s thriving tourism industry and year-round community.

    LBI’s rental market has seen significant growth over the past decade, with a sharp increase during the pandemic. Currently, the average weekly rate for a peak-season rental (June-August) is about $6,000—a 45-50% rise from 2018 to 2023. Despite these increases, rental demand remains robust, with inquiries growing year-over-year (excluding 2020-2021 due to travel restrictions).

    Many investors leverage peak summer rental income for 10-12 weeks to offset mortgage payments, utilities, and taxes. Commercial property owners, meanwhile, benefit from LBI’s consistent foot traffic, which supports strong rental income and long-term value appreciation.

    It is important, however, for commercial landlords to conduct due diligence when selecting tenants. A profitable and durable business is essential for success in a seasonal area like LBI, as not every business model thrives in this unique market.

    Whether you’re considering residential or commercial investments, LBI offers a unique market with proven profitability. Let’s connect to explore the opportunities and determine if an LBI investment is right for you!

  • Location

    Clearly, coastal real estate is often more expensive than non-coastal real estate due largely to its scenic location and proximity to the ocean; overall leading to incessant demand. Undoubtedly, coastal real estate can also provide a higher return on investment due to this elevated demand and limited supply, especially on Long Beach Island. Additionally, shore properties are highly desirable for a multitude of reasons other than for financial goals. Living on or close to the water is a dream many people desire throughout their lifetime. Whether it be someone who loves to surf, swim, fish, boat, wake board, lay on the beach, paddle board, enjoy the outdoors, or a combo of all; LBI is the place. As a result of all of these factors, properties on island typically see much higher rates of appreciation than a property on the mainland. Long Beach Island, NJ is rated as one of the top locations on not only the Jersey shore, but the entire east coast with the prices and constant demand to show for it. Learn more about LBI by clicking here!

  • Market Statistics

    Average Price:

    -November 2014= $926,620

    -November 2024= $2,000,000

    Median Price:

    -November 2014= $759,750

    -November 2024= $1,699,000

    Sales-To-List-Price Ratio:

    -November 2014= 93.7%

    -November 2024= 98.6%

    Cumulative Days on Market (CDOM):

    -November 2014= 200 days

    -November 2024= 61 days

    Active Properties For Sale:

    -November 2014= 800 properties

    -November 2024= 169 properties

    Number of Sales:

    2014= 531 homes

    2024= 318 homes*

Average Sales Price By Year

All numerical values are in dollar amounts. Source: BrightMLS® 2024; Residential, Multi-Family, & Land sales data.

Your Rental Investment Property

…So you want to buy an investment property on Long Beach Island… Is it worth it? What type of properties produce the greatest return? What is the market like on LBI for investment properties right now? When should I buy? Learn today!

While every investor has different goals and objectives, an investment property on LBI could indeed be profitable. It is important for a buyer to do the proper due diligence and understand the rental process, income potential, and annual expenses. If interested in learning about investment properties on LBI, please do not hesitate to contact me!
LBI Investment Property

Mortgage Information

  • Mortgage Pre-Approval LBI

    Pre-Approval

    Mortgage pre-approval in New Jersey (NJ) is essential for homebuyers for several reasons. Firstly, it provides clarity on your budget, ensuring you focus on properties within your financial reach. Secondly, it gives you a competitive advantage in NJ's bustling real estate market, demonstrating to sellers that you're serious and financially prepared. Additionally, pre-approval streamlines the mortgage process, potentially leading to a faster closing. It also enhances your negotiating power and helps identify any potential financial issues early on. Ultimately, obtaining a mortgage pre-approval in NJ offers clarity on loan options and terms, making the home-buying journey smoother and more efficient.

  • Mortgages on LBI

    Under Contract

    Meeting your mortgage obligations as a buyer in NJ is crucial for maintaining the integrity of the transaction, building trust with the seller, and ensuring a successful and stress-free closing process. Failure to secure your mortgage in the time frames written out in the NJ real estate contract can lead to a breach of contract. It is crucial to keep a timeline for dates you need your mortgage application & commitment by to satisfy the contract. It is also crucial to make sure all requirements put forth by your lender are met by closing (i.e. home insurance, flood insurance, appraisal, and possibly more).

  • LBI mortgage info

    Closing

    As a buyer in New Jersey (NJ), meeting your mortgage obligations at closing is absolutely critical for several key reasons. Firstly, it ensures that the funds necessary to complete the purchase are available as agreed upon in the contract. Failure to meet these obligations could lead to delays or even cancellation of the sale, causing significant inconvenience and potentially financial penalties. Secondly, fulfilling your mortgage obligations demonstrates your financial responsibility and commitment to the transaction, which can reassure the seller and help maintain a positive relationship throughout the closing process. Additionally, meeting your mortgage obligations allows you to take ownership of the property and officially become its legal owner, enabling you to enjoy all the rights and benefits associated with homeownership. Ultimately, meeting your mortgage obligations at closing is essential for ensuring a smooth and successful conclusion to the home buying process, protecting your interests as a buyer, and solidifying your investment in the property.

Learn More

Home Search By Town

  • Homes For Sale in Barnegat Light, NJ

    Barnegat Light

    In my opinion, Barnegat Light is the most interesting town on Long Beach Island. Many who visit only see it as “the town with the lighthouse”, but there is so much more. Head down to the most northern tip of the island and there you will find a quaint town that is quite different from the rest. Driving into this area the first thing you will want to do is go see the inlet and Lighthouse. On your way over to “Old Barney” be sure you don’t miss the famous Viking Village which is home to many local stores, seafood shops, and large commercial fishing boats. The town also boasts a number of amazing seafood restaurants, ice cream shops, nature trails, mini golf, boat charters, world-class fishing, and some of the most expansive beaches on the entire Jersey coast. Barnegat Light’s massive dunes not only provide protection for the island from the forces of nature, but also creates such a landscape that makes you question if you are still in New Jersey.

    Barnegat Light Home Search
  • Harvey Cedars, NJ homes for sale

    Harvey Cedars

    Harvey Cedars is one of the quietest towns on the North end of the island sitting between North Beach and Loveladies. Also one of the narrowest parts of the island, it is not uncommon to be a five minute walk to the beach even if you are in a bay-front property. Take a short walk in to town and you will find a few different restaurants, cafes, ice cream shops, pizza parlors, yoga studio, yacht club, kayak/sailboat rentals and anything else you may need. In the summer the town has a free outdoor concert every Wednesday evening in beautiful waterfront Sunset Park, playing everything from beach tunes to Bruce Springsteen covers. With some of the most secluded beaches, popular surf spots, and best sunsets on the island, Harvey Cedars should be on everyone’s list to visit.

    Harvey Cedars Home Search
  • Surf City, NJ homes for sale

    Surf City

    Surf City is exactly what the name implies, a surfer’s haven. The town is the second of which you will drive through when turning off the bridge heading towards the North end of the island. This laid-back town offers everything you would ever need at the Jersey Shore, not to mention some of the best surf spots on the island. Want to eat out? Surf City has plenty of restaurants to choose from. Need to grocery shop? The town offers multiple grocery/convenience stores along with the island’s famous butcher, Okie’s. Need peace and quiet? Head to the beach and enjoy some of the island’s discreet oceanfront. Surf City has it all!

    Surf City Home Search
  • Ship Bottom, NJ homes for sale

    Ship Bottom

    The first town you will drive through on LBI is Ship Bottom. Thought of as one of the most affordable towns on island, SB also contains many of the island’s best restaurants, bars, stores, and hotels. Take advantage of all the island has to offer while also being a short drive on and off the bridge!

    Ship Bottom Home Search
  • Long Beach Township, NJ homes for sale

    Long Beach Township

    Long Beach Township differs due to the fact that it includes multiple towns spanning from the North end of the island all the way down to the South end. The towns that are part of this township include: High Bar Harbor, Loveladies, North Beach, Brant Beach, Beach Haven Crest, Brighton Beach, Peahala Park, Beach Haven Park, Haven Beach, The Dunes, Beach Haven Terrace, Beach Haven Gardens, Spray Beach, North Beach Haven, and Holgate. These specific towns are some of the most relaxing, quiet, and beautiful areas on Island.

    Long Beach Township Home Search
  • Beach Haven, NJ homes for sale

    Beach Haven

    Beach Haven is arguably the most sought after and populated area of LBI, located on the South end of the island. This family-oriented town has much to offer. Some activities and draws of the area include: Fantasy Island Amusement Park, Thundering Surf Waterpark, New Jersey Maritime Museum, Surflight Theatre, expansive beaches, pickleball courts, numerous restaurants ranging from fine dining to casual bites, excellent night life/bar scene, multiple ice cream shops, unique shopping, summer festivals, Fourth of July fireworks, Chowderfest, and much more. Come visit the Queen City today!

    Beach Haven Home Search

Types of Homes on Long Beach Island

Long Beach Island has many different property types ranging from simple single-family detached dwellings all the way to commercial and multi-use properties. Click on the text below to search for a specific type of property on LBI!

Single Family Homes for sale on LBI.

Single Family 

Multi-Family Homes For Sale on LBI

Multi-family/Duplex 

Condos For Sale On LBI

Condos

Multi-Use and Commercial Properties For Sale on LBI

Multi-use & Commercial

Land For Sale on LBI

Land

Long Beach Island "LBI" Rentals

Rentals

Property Locations on LBI

Oceanfront

Oceanfront properties on LBI are some of the most sought out real estate in New Jersey, carrying the price tags to match the demand. As expected, waterfront properties also carry different building and construction codes.

Bayfront

Bayfront refers to property that is adjoining or fronting on a bay. Bayfront properties are typically lower in price than Oceanfront and often give an owner “more bang for your buck”. A major advantage of owning a bayfront property is the ability to have a dock and/or boat. Boat slips are expensive and rarely vacant on LBI.

Oceanblock

Oceanblock refers to properties that are located on the east side of Long Beach Boulevard and do not involve crossing any street to get to the beach entrance.

Lagoonfront

Lagoonfront refers to properties that front a lagoon or cove that opens up into the bay. Little Egg Harbor Bay, Manahawkin Bay, and Barnegat Bay all contain numerous unique and beautiful lagoons along the west side of the island. Lagoons provide additional protection from wind and wind swell during storms.

Oceanside

Oceanside simply means that the property is on the east side of Long Beach Blvd, but in some areas on island may require you to cross a street (such as Beach Ave).

Bayside

Bayside homes are located on the west side of Long Beach Blvd. As a result, these homes tend to be the most affordable on Island. There are only a few sections on LBI that require a longer walk (more than 5-10 minutes) from bayside to the ocean entrance.

Current Market Update

Buyer Information

Learn important information pertaining to a buyer in this real estate market. Learn about the process, typical closing costs, mortgage info, insurance info, local recommended professionals, and more!

Important Real Estate Links

In need of valuable resources to navigate the real estate world effectively? Look no further. My collection of crucial real estate links is curated to provide you with the essential tools and information necessary for your property endeavors. Ready to embark on your real estate journey? Explore my directory of links today and take the first step towards achieving your real estate goals. Your success story begins here.