A Pause in a Growing Resort
New Commercial Development Planned
Rules Affecting Condo Sales
Realty, LLC distributes information about the local market as a service to interested
visitors and real estate investors on a regular basis. We update that information
so visitors to the site have current information when considering real estate
purchases and rentals. Check back from time to time to find the latest news about
our unique shore community resort market.
Pause in a Growing Resort Market??
estate at the shore is primarily a second home market. There are year round properties
but they are a small percentage of total sales. For example, the total year round
population of the Wildwoods By-the-Sea is approximately 12,000 residents in the
four municipalities. That number can swell to a quarter million on a summer day
and a high percentage of those visitors are either living in an owned unit or
home, or renting a motel room or apartment.
addition, the Jersey Cape is located within a tank of gas of nearly a quarter
of the nation's population. The shore is a "drive to" destination for
visitors from New York, Philadelphia, Baltimore, Washington, DC, and all the densely
populated towns and suburban areas in between. Business demand can actually increase
during challenging times such as the country is facing this year.
how are the Wildwoods By-the-Sea doing right now? It is a mix of situations depending
on what you are looking to buy or rent.
There are many very attractive properties for sale. Units in condotels are priced
to reflect rental income in many cases although property maintenance and operations
are important considerations also. Prices of newly built condominium buildings
are quite attractive in many cases although that situation will not continue when
Jersey Cape resumes the surge in development and resort business growth in coming
- Rentals in some buildings, including motels, condotels and well-located
condo rental buildings are actually up from past years in many cases.
is no crystal ball but it is a buyer's market overall. Call today to discuss those
opportunities and your particular interests with Ocean Proper Realty. We have
been involved in this specialized market for more than thirty years.
Commercial Development Planned
Improvement District is developing an aggressive program for center city commercial
development in the Wildwoods By-the-Sea. This may create some interesting opportunities
for commercial property investors and business owners who want to open a new venture
in one of America's best known beach and boardwalk communities.
development will focus on restaurants and entertainment although some retail business
is also planned. The area has historically been a resort oriented business district
for more than half a century. The location, just a block away from the beach and
boardwalk with more than a quarter million visitors on a summer day, provide a
ready market for these businesses.
designs have been completed for facades that focus on the resort's very popular
and well known Doo Wop theme that parallels the extremely successful Art Deco
concepts in southern Florida. The goal is to develop the area as an additional
attraction, an event and entertainment area with a unique and festive atmosphere
to serve the resort and recreation visitors and those attending events during
the extended season developed by the new beachfront Wildwoods Convention Center
and the growing Wildwoods events center.
The district is now providing fare free transportation throughout the center city
area to attract more visitors. New businesses opened this year but there is still
a very real opportunity to purchase commercial property or open a new business
while real estate prices are reasonable and attractive opportunities are available.
Grant programs are under development for new and growing businesses. Interested
businesses and investors who want to get in on the ground floor or this new development
opportunity should call Patrick Rosenello, BID Executive Director at 609.523.1602.
Information is also available on plans and properties for sale from Ocean Property
Realty at 609.729.3200.
Rules Affecting Condo Sales
is especially important when purchasing condominium properties in this challenging
real estate market. Read the association documents. Check the financial condition
of both the association and the property. Are units sold and are owners paying
their condo fees in a timely manner? Are large cash flow assessments or capital
assessments contemplated? Informed buyers who select the right properties are
benefiting from some very attractively priced real estate but you need to assess
the larger picture before you focus on a single unit or property.
You also need to know if the building meets the requirements of Fannie Mae and
Freddie Macthe biggest players in the mortgage market. Fannie and Freddie
have changing their lending rules to make sure loans they back are domiciled in
buildings that are able to pay their bills. They want to know there are enough
owners with current association accounts to pay for maintenance and operations
on an on-going basis.
Under the new regulations,
Fannie Mae and Freddie Mac will reject mortgages for units in a condo if more
than 15 percent of the owners are delinquent in their association fees. In addition,
those agencies will guarantee mortgages in new or newly converted condo buildings
only if at least 70 percent of the units are sold or under contract.
Under these new rules, it will be more difficult to obtain a mortgage in or sell
if you own a unit in a non-qualifying condominium. This creates two situations.
- Pricing will usually more more attractive
if you have a source for mortgage financing or you do not need a mortgage. This
can create some attractive real estate buys so long as you have financing and
understand the risks involved.
- The Fannie Mae requirements also make
units at the shore, in buildings with a high percentage of sold units and current
accounts, more attractive. The advantages of owning property in this type of building
Realtors like Ocean Property
Realty who know the community and the local market can be very helpful in these
situations. They know where you will find property that meets your needs and interests.
They can also help you find property that meets these new requirements for financing
with Fannie Mae and Freddie Mac. Call TODAY to discuss on-going changes in the
market, and both the opportunities and the problems they create (729-3200).