Real Estate Agent · Northern New Jersey · Member since 2016 · 29 posts · 5 votes
For those familiar with the New Jersey real estate market, your feedback is appreciated! I have been looking into investing in the Journal Square area is Jersey City, since I have read that there are big changes to come in that area. The town plans to build it up over the next few years, though at the present time, I am not too sure of the livability of the area compared to other districts such as the more talked about Waterfront section. I ran the numbers and it looks like renting a property would have me basically break even but I would be purchasing for the potential higher selling price I predict in a few years. Do you believe Jersey City could be the next Hoboken or is this too risky an investment at the time? Thanks! All feedback/ suggestions are appreciated!
Investor · Hoboken, NJ · Member since 2016 · 24 posts · 5 votes
10y
I like the area as well, but I would never buy on appreciation and break even every month. I spoke with @Edward Verdel about the area and hoboken market and he is a great source. I own a few multi families so happy to be a resource if needed.
Jersey City, NJ · Member since 2016 · 2 posts · 1 vote
10y
Hey Alexandra! i am going through the same dilemma. We are in the market too and cant even break even with any of the properties listed in the area. But its a sellers market and everybody's perspective is that the prices are going to be way up in few years. But speculation is not a good investment strategy so there is that. Cant make up a decision myself.
Investor · Jersey City, NJ · Member since 2015 · 88 posts · 31 votes
10y
@Jagrut Desai & @Charles Reed Agreed! Deals are few and far between. However, if you work with the right wholesalers, and can buy with cash or private financing, you could get higher cap rates and cash flow.
Even in Jersey City and all of Hudson & Bergen counties. Cash is king :)
@Alexandra Preziosi Its great you're doing your due diligence! Savvy investors buy for cash flow, not speculation of price appreciation.
@Jagrut Desai & @Charles Reed Agreed! Deals are few and far between. However, if you work with the right wholesalers, and can buy with cash or private financing, you could get higher cap rates and cash flow.
Even in Jersey City and all of Hudson & Bergen counties. Cash is king :)
@Alexandra Preziosi Its great you're doing your due diligence! Savvy investors buy for cash flow, not speculation of price appreciation.
Kanisk. buying with cash or private financing has no effect on cap rates. Also savvy investors buy for profit not cash flow or appreciation.
Real Estate Agent · Jersey City, NJ · Member since 2015 · 55 posts · 7 votes
10y
@Alexandra Preziosi, I just moved to Journal Square a few months ago myself - coming from Hoboken - and I would absolutely recommend it as a target investment area along with some other parts of Jersey City. A lot of changes are happening! Please feel free to contact me anytime.
Rental Property Investor · Long Island, NY · Member since 2015 · 490 posts · 301 votes
10y
I think its a great area and will do very well in the near future but i can never justify holding onto a property for future appreciation. I need to see cash flow or it doesn't make sense to me. Dont forget taxes and other expenses go up too so you may find yourself bleeding cash before it gets better over there.
Investor · New York City, NY · Member since 2015 · 8 posts · 2 votes
10y
Alexandra
You need to get to know the JC market. There are possibilities of lower prices with higher cash flows but the neighborhood is something that you have to be ready for you.
A lot of NJ and NY (Manhattan, Queens, Brooklyn) is not like much of what I see on BP where people buy and invest with small money (below 500K). You will need good capital or as I said above, you will need to consider the more challenging areas.
Again, unlike many areas discussed on BP creative financing, seller financing, wholesaling, no money deals etc are hard to come in JC. Or at least I have not seen much.
The market is extremely competitive and there are many cash buyers who you will be completing with.
I have been in JC for last few years and have done well, with a ROI of 7-9% and improving. But had to put down some "serious" money (relatively speaking) .
Happy to hear otherwise from others who really know this market as well I do.
Investor · Hoboken, NJ · Member since 2016 · 24 posts · 5 votes
10y
I like the area as well, but I would never buy on appreciation and break even every month. I spoke with @Edward Verdel about the area and hoboken market and he is a great source. I own a few multi families so happy to be a resource if needed.