I’ve always wanted to purchase investment property in the New York City, but I’ve never had the capital to spare. I don’t think I’ve ever met anyone who has—it’s a pretty elite market, especially in neighborhoods like Manhattan. But, the city isn’t just expensive for investors like me. It’s also increasingly expensive for would-be homeowners. Perhaps that’s why Jersey City is quickly becoming one of the hottest spots for real estate investment in the Northeast.
I know it’s hard to believe. I mean, Jersey City? Wasn’t that the home of Barone Sanitation on The Sopranos? It took a visit to the area for me to see the truth: Jersey City is a beautiful, clean, modern place to call home. One recent Sunday morning, I saw young families having brunch in sidewalk cafes, a yoga class in the park, and nannies pushing strollers past stately brownstones. Jersey City is becoming much like downtown Manhattan.
Just taking a good look around shows that this humble exburb of New York City is on the up and up. And the stats back it up too. Indeed, now is the time to buy investment property in Jersey City.
Investment Property in Jersey City: Where People Want to Live
Jersey City is where people want to live these days. Millennials are projected to remain the largest growing sector, buying property in “surban” neighborhoods: ones that have an urban feel but are within walking distance to shopping, dining, and entertainment. They are tired of paying ridiculous rent to split an efficiency in Manhattan with three roommates. And they are ready to skip starter homes to move right into dream homes—if the city is only a train ride away.
Market conditions in Jersey City are positioned to yield solid residential real estate investment returns. While the rest of New Jersey has seen home sales decrease significantly, Jersey City is the state’s gold lining. According to recent research, from April 2016 to April 2017 sales in this area rose by 103%, with a 5% increase in the median list price.
It’s no wonder why the area is seeing so much growth; it’s close enough for educated Millennials to commute to jobs in the city while living the suburban lifestyle they want. Jersey City continues to be one of the fastest growing towns in all of New Jersey because of the quick commute into the city and budding downtown community. It’s expected to keep growing steadily.
Jersey City is the place to buy. But is now the time? Here are some quick facts and figures:
New Jersey will continue to see property tax hikes, pressuring homeowners who already suffer some of the biggest tax bills in the country. The rainbow in the cloud, however, is that this could provide you with an opportunity to invest in and make a difference by revitalizing older neighborhoods.
Distressed properties in the middle price range may become increasingly available, offering you the best value investment prospects. As revaluation causes property taxes to rise, homeowners may wish to sell their properties and move to cheaper areas.
Interest rates are rising. Smart home buyers will make purchases now before interest rates climb any higher. In addition, rising interest rates may cause lenders to relax their standards to tempt new buyers.
Smart investors will take advantage of these market conditions, too. Buy-and-sell strategists can benefit from increasing property taxes because they will be able to get a good deal from a distressed homeowner. Those who prefer a buy-and-hold strategy can lock into an investment property at a reasonable cost and wait for appreciation—which is happening slowly but surely. It’s such a desirable area properties can be relisted with confidence. Either way you go, there’s strong ROI potential.
Position Yourself for Better Investment Opportunity
Luckily, I took advantage of the opportunity to start my own independently operated HomeVestors® franchise a few years ago. Because of the nationally-known “We Buy Ugly Houses®” marketing campaign, my first Jersey City investment in The Heights was an excellent investment property that I sold — in only five days. The paint was hardly dry! Now, I’m positioned to take advantage of the evolving market conditions in the coming year and grow my real estate investment business even more.
If you are ready to take the next step and build a solid real estate investing business too, give HomeVestors® a call today.
Each franchise office is independently owned and operated.