Here is a great look at the current Jersey Shore home market from Ian Lazarus.
Is this a good time to upgrade into a larger Jersey Shore property?
Yes. The first question I would ask is how much equity do you have in your current property? The difference between the realistic values of the property and any loan or debt amount attached to the property would be your equity amount. This has nothing to do with any profit or loss you might have experienced. Either way we are looking at a snapshot of today to decide our next move. Psychologically no one likes to take less on an investment but that is irrelevant in deciding to upgrade into a bigger or better property. In the long run the objective is to leverage to down market to your advantage by buying the more expensive property now. On a percentage basic if all things were equal the dollar lose would be substantially more on the larger property than the small property.
As long as you have 20% for your new down payment from funds from the old property or new funds the transition is a go. This is how people with money have been upgrading all the way to the beachfronts or bay fronts. You can’t imagine how many people have asked me “how did those people buy on the beach?” In most cases it was their second or third property at the beach. If you have additional questions about this awesome timing opportunities please email me or call to discuss.
Is this a good time to invest in a Jersey Shore home?
Yes is the answer. If you are like most people who are trying to catch the bottom of this cycle well we are in it right now. I would consider being within a 10% margin of the top or the bottom as a good reference point. Why do I say that? No one has a crystal ball from what I been told. Then all we can do is our very best to identify the bottom. First of all I like to call this next two years as the muddy bottom. Properties will come up and be sold at similar prices in the period of time. This is where an experienced real estate broker will come in handy.