Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm a commercial real estate professional and usually surf the forum to get a good idea on properties my firm and I are looking to purchase.
This time around, I am asking for a personal investment/dwelling in Newark, NJ. There are some condos for sale in the CBD of Newark, across the street from the Prudential Center. I currently live in Staten Island @ home and work in Union Sq. NYC.
Based on my pre-approved financing I can get significant lending to purchase a condo but I want to keep my cost of living light. Right now I am looking to purchase something around $200,000 and figured I'd give Newark, NJ a look. Perhaps after all the money going into it after the Whole Foods deal and work NJIT is doing there could be a vitalization. What are all your thoughts and do you think it could be a good place to live/commute from to Manhattan.
Newark's revitalization is still up for debate right now. Yes, there are a number of developments going on (Whole Foods/Hahne's building condos, new Prudential tower, Teacher's Village, Lofts on Market Street, NJIT construction, several new hotels, and new buildings in the Ironbound and North Newark, Springfield Avenue Shop Rite), as well as several in the pipeline (One Theater Square, Shaq Tower, 4 Corner's Millennium, SoMa, Triangle Park). Many of the latter are stalled or just fantasies right now. The city also has many ongoing issues, persistent high crime, awful housing stock, jumbled city plan, zoning codes that have only recently been rectified, terrible schools, mediocre intra-city public transit, just to name a few. I figure it's anyone's guess as to whether or not a property in Newark is a good long-term investment.
If you were to live in the city right now, commuting to NYC would be pretty easy, as you could walk to Penn Station fairly safely. To get groceries and other necessities you'd be stuck frequenting Walgreens and Rite Aid mostly. Once the Whole Foods and Shop Rite open there will be grocery options near downtown, but not particularly close to Prudential Center, so you'd still need to use a car or rely on the buses. Newark, safety concerns aside, is not a particularly walkable city so getting around can be a pain.
High risk - high return. Dirt cheap prices right now. If you believe in something go for it. Are prices going to go down? Probably not.
When everyone is cryin', that's when you should be buyin'.
It's not the risk, it's the upkeep that will kill you. Say you got these NWK pads at $200k, you'll be paying property taxes in the $4k-5k range not including all the maintenance fees that could be $1700-2500.
It may take 3-5 yrs to see any change, the way things are right now there's a lot of supplies everywhere in NY/NJ coming up that may hold prices steady for most spots. I don't see any immigrants loaded with cash interested in NWK areas. There's no immigrant hub within the 5-10mi radius.
Just some food for thought. You probably do better in new construction out in Brooklyn than here.
Thank you everyone for the replies so far! I really appreciate it.
For me, I'd rather put my money in some spots in jersey city that still are relatively cheap but I figured I'd look into NWK and perhaps get in when the blood is still on the streets. Looks like purchasing something with extremely low basis might be the trick, hold out for a while and roll the dice.
Thank you everyone for the replies so far! I really appreciate it.
For me, I'd rather put my money in some spots in jersey city that still are relatively cheap but I figured I'd look into NWK and perhaps get in when the blood is still on the streets. Looks like purchasing something with extremely low basis might be the trick, hold out for a while and roll the dice.
Well, you have a 50% chance of doing really well If you are single or married with no kids and can afford it then it is probably a good idea to take a risk. The downside I think is pretty moderate. Anything can of course happen, but it seems to me that the worst outcome would be that the price of your property stays the same or maybe has a moderate depreciation. It does not sound that something more catastrophic, like arson or looting is likely.
But if you have kids, I would not subject them to Newark public schools...
It's not the risk, it's the upkeep that will kill you. Say you got these NWK pads at $200k, you'll be paying property taxes in the $4k-5k range not including all the maintenance fees that could be $1700-2500.
It may take 3-5 yrs to see any change, the way things are right now there's a lot of supplies everywhere in NY/NJ coming up that may hold prices steady for most spots. I don't see any immigrants loaded with cash interested in NWK areas. There's no immigrant hub within the 5-10mi radius.
Just some food for thought. You probably do better in new construction out in Brooklyn than here.
That's the normal tax rate for any condo with maintenance. He needs a place to live. That's $583 a month to cover taxes/HOA. A $200,000 mortgage will run you $1,000/m. So a $1,600 a month for a place to live with some upside? If he leaves he can rent it for $1800-$2000.
Newark has promise! Why move to an area that already had a pop in value?
If you have the $$$. Newark offers tax abatement for owner occupied new constructions. I just built a two family home that I live in and rent the upstairs for $1850. Taxes will probably be in the $5-$6k range for 5 years than $10,000 after that.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.