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We are working couples just entering in our 30's. We already have a primary residence house but were also looking to buy one rental income property, which we think, we can sell off once the real estate prices are good.
We are pretty new to NJ area. We couldn't help notice that the fort lee apartments/condos are pretty economical to buy when compared to near by places.
Few questions
1) Why are prices so low in these areas? This place is so close to NY so not sure why these are not where they should be?
2) Does anyone have any recommendation/experience in buying/renting in this place? Does rental works in this area?
3) Does this area has any development plans that might be coming up which could raise the price further up?
This place keep popping in our mind for a while now as to whether we should invest here or not? Our primary focus is to definitely rent this place for now, for atleast 5-7 yrs (or may be more) before thinking of selling it off.
Any recommendation would be great. Thanks in advance
You think they are low? They are pretty expensive from my point of view. MAybe you are looking at co-ops. Don't deal with co-ops as they have many many rules that would make it hard to rent out. I'm not even sure you are allowed to rent out a co-op.
But they are developing the center the town. They already have a high-rise and more buildings are coming. FOrt Lee is still sought out as it is close to NYC. You can buy a place and rent it out easy. My neighbors moved out of their duplex and is renting it out.
If you dont feel the prices are inflated, then Fort Lee has the perfect location. It has very easy access to NYC, and the highways leading out. It seems like a good investment just based on that. It is a very walkable town, and that seems to be all the rage nowadays.
The reasons that the prices are "low" right now, will still keep the values "low" in 5-7 years. It is not like the place is changing (except maybe becoming more Korean). Places like Fort Lee are a total gamble. If it were a sure thing, the pros would have bought everything up already. If you are willing to lose most (if not more) than your investment, then go ahead. You might be the lucky ones.
We are working couples just entering in our 30's. We already have a primary residence house but were also looking to buy one rental income property, which we think, we can sell off once the real estate prices are good.
We are pretty new to NJ area. We couldn't help notice that the fort lee apartments/condos are pretty economical to buy when compared to near by places.
Few questions
1) Why are prices so low in these areas? This place is so close to NY so not sure why these are not where they should be?
2) Does anyone have any recommendation/experience in buying/renting in this place? Does rental works in this area?
3) Does this area has any development plans that might be coming up which could raise the price further up?
This place keep popping in our mind for a while now as to whether we should invest here or not? Our primary focus is to definitely rent this place for now, for atleast 5-7 yrs (or may be more) before thinking of selling it off.
Any recommendation would be great. Thanks in advance
i am almost 100% certain you are looking at coops in fort lee if you think the prices are low, condos in that area are all 600k+ for a 2br/2ba on top of maintenance/tax.
For the coops, you cannot rent them out, heck the board wont even let you buy them as investment properties, so can forget about that.
if you want investment property that is cashflow positive, get a 2-4 family in bayonne.
Prices are "low" in Fort Lee relatively to areas to the south because transit access in Fort Lee is not great. Your main option for a commute into NYC is the bus across the GWB to the subway, which is a hard sell for most people. Further south, you get ferries and eventually train options, and Edgewater, West New York, Weehawken, Hoboken, Jersey City, etc. have much shorter commutes to Midtown and the Financial District. That is not likely to change any time soon, so Fort Lee will remain discounted when compared to points south, even if prices continue to rise in both places.
As others have stated, you may also be looking at co-ops. Co-ops are unusual legal beasts (common only in NY and NJ) that have rules specific to each co-op and ranging from lax to extremely restrictive on ownership, occupancy and holding property as an investment. You would have to read the fine print closely and probably consult a real estate attorney who specializes in co-op purchases to be certain that any co-op in which you are looking to buy would permit your intended use as an investment property. Some also require all-cash or high-equity purchases, which might be another hurdle, and co-op boards typically have to power to refuse a sale for any (non-discriminatory) reason or no reason at all, which can, in some co-ops, make offloading your investment later quite difficult. All of these restrictions reduce sale prices.
You buy an automobile brand new, and in a few years you decide to sell it.
After a few people come see it, someone decides they want to buy it. A price is negotiated, paperwork and bill of sale made out, and the Title is turned over.
The buyer gets insurance for that car, then goes to the motor vehicle bureau to finalize the purchase, only to have someone from the DMV tell the buyer, "Wait a minute: we have to check you out, make sure you don't drink and drive, you always wear your seat belt, and see if you have any prior accidents, etc. And that may take from a few weeks to a month."
If that was to come about, there would be a major uproar over it.
But that's EXACTLY what happens when you sell and purchase a co-op.
Co-op boards are an archaic system, and kept in place for no worthwhile reason other than to give people with too much time on their hands something to do, while inflicting their authority.
Buy a condo; avoid co-ops under all circumstances.
You think they are low? They are pretty expensive from my point of view. MAybe you are looking at co-ops. Don't deal with co-ops as they have many many rules that would make it hard to rent out. I'm not even sure you are allowed to rent out a co-op.
Also worth a "cheap" co-op condo might carry thousands of dollars per month in resident fees. It's the hidden catch with the unbelievably low prices.
You buy an automobile brand new, and in a few years you decide to sell it.
After a few people come see it, someone decides they want to buy it. A price is negotiated, paperwork and bill of sale made out, and the Title is turned over.
The buyer gets insurance for that car, then goes to the motor vehicle bureau to finalize the purchase, only to have someone from the DMV tell the buyer, "Wait a minute: we have to check you out, make sure you don't drink and drive, you always wear your seat belt, and see if you have any prior accidents, etc. And that may take from a few weeks to a month."
If that was to come about, there would be a major uproar over it.
But that's EXACTLY what happens when you sell and purchase a co-op.
Co-op boards are an archaic system, and kept in place for no worthwhile reason other than to give people with too much time on their hands something to do, while inflicting their authority.
Buy a condo; avoid co-ops under all circumstances.
A co-op, by definition, means that everyone is contributing to the "common good" of the building. Proper maintenance of the building is dependent on everyone in the association being able to afford to pay the fees. If I'm a resident owner in the building, I don't want some ******* moving in next door that is going to be delinquent in all his association payments and then have everyone in the building suffer because of it.
Your analogy about the car doesn't apply here. Once that person buys the car, he/she is the only person that has any vested interest in the payments and care of that vehicle. In this situation, all residents of the co-op are depending upon each other for successful maintenance of the building.
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