New Jersey – home to Sinatra, Springsteen and Tony Soprano. It is also home to the real estate market, which is ripe for investment. The Garden State has many promises – if you know where and what to look for. Therefore, we give you the list of the best places to buy investment property in NJ.
The influence of the market highlights the best cities for the purchase of investment property in NJ
As the state continues to slowly rise from the recession, some areas will start to hit pre-crisis highs. While other cities may suffer losses because of policy changes, such as revaluation of property taxes in Jersey City. But no matter what happens, there is always an opportunity for investors who correctly play their cards.
These market conditions create investment opportunities for everybody who wants to try it. At high repurchase rates, investors should be able to find a suitable fixable property with relative ease. Rapid reconstruction with an eye to selling should bring good profits, as high demand and limited availability increase selling prices. As a result, investors have a huge impact on their investments.
What are the cities you should consider when buying investment property in NJ?
Whatever your investment strategy is, these are the cities you should look:
From the point of view of the investor, Hoboken is a great place. First and foremost, the population of Hoboken has significantly increased in recent years. And there are no signs of an end to this population growth. Why is it so popular? With Manhattan, left out of reach for almost everyone who does not work for Wall Street, young professionals and families go to Hoboken. It takes about a quarter of an hour to get to Manhattan from the Hoboken terminal. So this city is an ideal place for families who want to settle down without losing touch to New York. And if they hire the right piano movers NJ, they can continue with the same lifestyle with no troubles. Also, with rich musical and artistic scene, it’s easy to see why Hoboken attracts buyers from all over New York and New Jersey.
However, we must say one thing: prices in Hoboken are high. In fact, on average, they are higher than anywhere else in New Jersey. But rents are also high, and a two-bedroom apartment has an average rental of $2,500. This means that investors should be able to achieve reliable rental rates, especially if you are looking for distressed or “ugly” houses.
Getting a large value home for sale in Hoboken can be like searching for a needle in a haystack. But, if you have the right strategy of real estate investors to find problematic properties, fixing can create real value in this market. And since the Hoboken market is slowing down, a successful exit should be highly possible.
In 2017 Jersey City won the Curbed Cup award and got the title of “Neighborhood of the Year.” According to RealtyTrac, sales in homes in Jersey grew by 103% compared to the same period last year, with an average price increase of 5%.
But for investors everything is getting better. Last year the number of excluded objects in the city increased. And, thanks to the new tax revaluation, the number may increase.
Properties in top neighborhoods in Jersey City may face the biggest growth that can leave many unable to afford to stay. These homeowners can look for a quick exit before it increases, which means that you will need to act quickly to grab properties at below-market prices. But, if you find the right property, good returns are possible.
There should be no surprise when we say that the population of Newark is going to grow. The city is on the rise, mostly because the crime rate is decreasing. And there are some new business investments, such as higher-class retailers that include technology companies. As a result, people with a significant level of disposable income are coming to this area.
The beauty of Newark’s growth lies in the fact that it is not tied to one demographic. Everyone is looking for rent in the Brick City. To begin with, Newark is quickly becoming a hub for young and talented. Young, ambitious and often single, these technical masters receive an average salary of $107,000. It’s a lot of disposable income. But families are also moving there. With many young families, Newark is a great place for rent, and save on the first house. Newark was one of the 25 largest single-family housing markets in 2017.
Why does that make Newark heaven for buying investment property in NJ?
When it comes to real estate search, there are actions on both ends of the Newark real estate market. After a long period without new construction, the city suddenly turned into a “hot spot” for developers. Since 2015, about 750 new houses have been built. What does this mean for housing prices? Well, traditionally, an increase in supply should smooth the market for a certain period.
But as retail offers grow around new developments, demand may rise in the near future. Investors will need to correctly evaluate rental real estate, find the right time to buy, when the market smooths out and come out when it reaches the maximum. That makes Newark on of the best places for buying investment property in NJ.
But at the same time, when new homes flood the markets, many throughout the city are still empty. Newark still has a high level of empty properties. This means that for investors who want to change the situation, they can revitalize the community and make a profit.
New Jersey is a great state for buying investment property. There are many cities and neighborhoods where you can buy a property knowing that you can expect a high profit. But, don’t just randomly pick a place. Carefully study all the possibilities of buying investment property in NJ. And only then should you hire moving companies NJ and start your real estate business.