What’s the realistic value of homes in Margate, Ventnor and Brigantine?
Real Estate execs suggest homebuilder incentives and short-term rental mania may have artificially inflated home prices.
To boost sagging sales and move properties, builders forced to get creative.
One strategy is to ‘buy down’ the mortgage rate. Make it cheaper for buyers to borrow money, at least for a short while before the rate resets back up in a few years.
Builders entice buyers with incentives like premium appliances, landscaping and other pricey home upgrades.
These builder incentive costs are difficult to track when estimating property comparable values.
The contracted price is recorded with no mention of costly give-backs. Though legal, this could be seen as artificially propping-up home values.
Builders would rather take smaller profit in order to protect a lofty sale price. This would presumably have some effect on neighboring property values. Good or bad.
Short-Term Rentals Distort Jersey Shore Real Estate Market.
Growing AirBnB backlash. STR’s are severely under-reported. Shadow inventory.
Will STR’s eventually pay ‘hospitality’ taxes? These are commercial properties operating within residential neighborhoods says Ventnor Mayor, Lance Landgraf.
Ventnor and Brigantine struggle to manage short-term rental (STR) activity.
In addition to AirBnB and VRBO, rental owners use property management companies, private websites and social media platforms to advertise and managing their properties.
It’s almost impossible for a local municipality to track any and all STR transactions.
Local authorities find themselves short-handed in the fight to enforce STR law.
See: Ventnor Code Enforcement Problems.
Even Margate is challenged by code enforcement, by their own leadership!
See latest story about Margate City Admin, Ken Mosca. Seems like Mosca didn’t get proper permits for the municipal building project under his control.
Lack of Enforcement. See dangerous Ventnor STR with exposed rebar underneath 2nd floor deck:
In other Downbeach Real Estate news…
Planning Consultant, Lance Landgraf, now considering a SPOT-ZONING plan for Brigantine. This presumably would allow Brigantine STR’s to skirt parking requirements.
Margate, Ventnor, Longport and Brigantine reluctant to allow residents to participate and watch public meetings using Zoom online video streaming.
Most Planning Boards Lack Full Transparency. Still blocking live video streams of public meetings.
75% of taxpayers are second homeowners who rely on ZOOM and YouTube to stay engaged with city govt.
In Brigantine, Mayor Vince Sera and City Manager Tiger Platt still blocking video access. Brigantine residents unable to see who owns growing list of commercial, short-term rental properties. Who financially benefits? Do Planning Board members recuse themselves?
Young families can’t afford seashore housing. Full-time residency declining faster. Small business forced to thrive on summer only. Schools eventually close.
