Ocean City NJ is a great location for an investment property. There are a number of factors that make Ocean City NJ a great investment. OC is a resort town on the east coast of NJ just about an hour west of Philly. If you know anything about the area you know Ocean City is a coveted summer vacation destination of Philadelphians (or more commonly known to the locals as Shoobies, once a derogatory term). Over the years Ocean City real estate has steadily increased in value. The culture of the community and city leaders is one of pride for the city, and they make sure they cultivate a great community that attracts investors and vacationers year after year. Let’s take a look at why you should consider investment properties in Ocean City NJ.
Why Ocean City NJ is Perfect for an Investment Property
Property Value Trends
The value of property prices has steadily increased in the last 5 years. After the crash of 2008 the average price of a property was 500k and held steady till 2012. Since 2012 the average price has increased 9% over the last 5 years. It’s looking like the price is just about to swing upward again. The great thing about having an investment property in Ocean City NJ is that even when theres a downturn or dip you will still be pretty much protected. After a dip the price always bounces back. As with any property investment, Ocean City is better for a long term investment. If you are looking to flip properties, Ocean City might not be the best location.
Ocean City Community
One huge positive on investing in Ocean City NJ is the great community. You can count on OC being a desirable location for families to vacation. Traditions for many families has been so engrained over the years and passed down through generations there will be no shortage of visitors and renters for many years to come. There will also be no shortage of buyers in the future. As the children of these families grow up they will be looking for their own little piece of the shore for their own vacation home.
Renting in Ocean City
For 12 weeks in the summer (possibly 14-16 if you have a great rental agency and great property) your investment property can be rented for a prime price. During the peak of summer it’s not uncommon to see the boardwalk and beach block rented at 10,000 a week. The rental season starts just before Memorial Day and ends sometime after Labor Day. Late fall to Late spring Ocean City is empty. Ask the rental offices what you can expect to collect in rent for the year. Because Ocean City has such a unique rental season it might be tough to figure out the GRM if your looking to buy an investment property to rent out. It would be best to talk to a rental agency to get some solid numbers on a property.
Investment Properties in Ocean City NJ
There are many great reasons to consider investment property in Ocean City NJ. I’m sure I missed some in this post. There are also some cons to investing in OC NJ. Maybe I’ll do a post on that next. Ocean City is a great location because it has all the great shore town attractions but is still in close proximity to Philadelphia. Just don’t try to drive into OC on a Saturday morning in the Summer!