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Old 06-22-2017, 09:10 AM
 
Location: NJ
21,811 posts, read 27,712,879 times
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Quote:
Originally Posted by snuffybear View Post
I think your house IS an investment. Buy low, sell high. Analyze the market, what is in demand, and why (schools, train line, taxes lower than other areas perhaps).

We have made $350K on one house and $200K on another by buying smart and not making emotional decisons. We got our third house for a great price, and expect to hold 7-10 years, and make $$ again.
you cant avoid the fact that it is both a place to live and an investment. however, i base my buying decisions on the "place to live" aspect way more than investment. im not going to move to an "up and coming" town just because there is more appreciation potential than an already established great town.
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Old 07-03-2017, 01:16 PM
 
25 posts, read 49,267 times
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Originally Posted by gen2010 View Post
Great Neck north will be 50% asian in 5 years any way. But you are looking for price appreciation.
A lot of asian buyers are looking at Great Neck. That is why it has better price increase potential.
you cannot have both ways
Same in Short Hills - Wealthy, highly educated Chinese families are buying the houses in droves, which is essentially what drives up the price. There was actually an article on this in some magazine where Scarsdale and Millburn were singled out as micro-real estate markets seeing crazy appreciation for this reason. Chinese buyers typically have dual income (both parents work in NYC), live in grandparents taking care of the kids, and want the top rated schools + commute. Also, there are Chinese investors who buy homes and immediately rent them as an investment. Of course a self fulfilling prophesy - as the Chinese community grows, more want nothing else but to live in these communities (or even specific neighborhoods in these communities), driving demand and prices up higher.

In fact, the Glenwood section of Short Hills, which is closest to train station with smaller lots is extremely popular. FOr this reason, it has a much higher price / sq foot than larger houses in Deerfield or Hartshorn. People looking to upsize in SH have done quite well - selling out of Glenwood (750 to 1.2mm) up to Deerfield or Hartshorn (1m to sky's the limit) where you sell with 8-10 offers and buy with much, much less competition.

The Glenwood section of Short Hills has probably seen the most dramatic demographic shift over the last 5 years.
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Old 07-04-2017, 09:20 PM
 
Location: Northern NJ
964 posts, read 2,520,709 times
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Quote:
Originally Posted by RafaelNadal View Post
Hi,

Do you have any suggestion which town to buy house that has great appreciation potential? I know Short Hills has a luxury mall and very good school district, but it's too expensive. A 4-bedroom house can cost 2m. How about towns in central NJ, e.g. Edison, Piscataway, Highland Park, etc. With 700-800k, it seems to be sufficient for a decent house in this area. But I am not sure how much appreciation potential these house have.

Generally, only towns that have easy access to NYC (within 1 hr) will be considered. Any suggestion is appreciated.
Personally, I don't think there is "great appreciation potential" in residential real estate in general. It's an entirely different world now, post-2008, and the next 3 to 5 years are unknown, which will have an impact on the next 5 to 20 years. Who knows what we will see. The "housing market" in general, across the board, has not recovered from the 2008 debacle. What kind of time-frame is there for this great appreciation potential?

If you purchased a home for $700,000, and it appreciates 50% in value, and the home is now worth $1.05mm -- over what period of time are you looking at this? While it is a myopic exercise, and I hate that, in 10 years you are looking at a 4.14% ROR. Yes, you may have had tax deductions/benefits, but there is also a cost to having a mortgage. If you paid cash, there is an opportunity cost. This is a fallacious discussion as this really should be a macro-economic exercise and discussion.

The crystal ball might be better off telling you who is going to win the Kentucky Derby next year, or the World Series. LOL.
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