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Hi, I would really appreciate some advice from Jersey City residents and investors.
I'm looking to purchase a condo to rent out for about 6-8 years, possibly living in it myself for a few years, and then obviously hoping it will appreciate in value once I'm ready to sell.
The properties I have narrowed down to seem to fall into two categories:
1. In Hamilton Park area, small square footage, appliances are not modern but have historic features like exposed brick walls and faux fireplaces. I know this is considered a better neighborhood of Jersey City.
OR for significant less asking price,
2. Within 5 blocks of the Journal Square Path Station, almost double in square footage, modern building with amenities like gym, modern appliances, but no unique historical touches. I know this is a more "up and coming" neighborhood.
I guess I'm choosing between nicer, larger apartments versus location. In this case, does location still trump all?
And I hear about both areas, Grove and Journal Square, having redevelopments soon...?
I've flirted with the idea of investing in JC myself and would definitely prefer investing in the Journal Square area over any other area in JC. It's all about buying low and selling high.
And yes, there's a master plan to revitalize the Journal Sq. area.
My realtor tells me that although there are development projects in the works around Grove St. area/Downtown, the Journal Sq. plans are put on hold, do you know if that's true?
Also, is a few blocks West of Journal Sq. Path more dangerous/less desirable than going East of it? Just a rumor I heard from another investor.
My realtor tells me that although there are development projects in the works around Grove St. area/Downtown, the Journal Sq. plans are put on hold, do you know if that's true?
Also, is a few blocks West of Journal Sq. Path more dangerous/less desirable than going East of it? Just a rumor I heard from another investor.
Journal Square seems to be getting better as time goes on. Grove street is more desirable but that was probably the place to buy around 5-10 years ago. Let's put it this way, Journal Square stop on the PATH has a lot of white collar traffic on it in the morning.
My realtor tells me that although there are development projects in the works around Grove St. area/Downtown, the Journal Sq. plans are put on hold, do you know if that's true?
Well the really BIG project in JSQ (City Center Towers) is on hold/dead. But there are smaller projects such as re-habs of smaller 6-10 unit buildings, etc. going on. A few recent condo conversions have happened down closer to McGinley Square, which some people include in their definition of JSQ. Things are happening, but they're small things and not really "transformative" yet.
Quote:
Originally Posted by baobabandbanyan
Also, is a few blocks West of Journal Sq. Path more dangerous/less desirable than going East of it? Just a rumor I heard from another investor.
I don't think you can stick to a rule like that in JSQ. It varies block-by-block. There are nice blocks north, south, east and west of the square. There are seedy blocks north, south, east and west of the square. Really when you see an ad for a property that piques your interest, you need to go investigate the area in-person.
Whether Hamilton Park or JSQ is a better investment is an interesting question. Hamilton Park has certainly "arrived" and asking prices reflect that. You're buying high, but you can expect it to hold its value. JSQ is riskier. I know a couple of people who "bought low" in JSQ in 2006/7 who now own properties worth 25% less than what they paid for them. The crash affected JSQ a lot more than downtown, where prices have been flat-to-increasing all along. So sure, JSQ offers a chance to buy low/sell high, but I think you'll have to hold onto it for a long time to see changes happen that would cause a significant uptick in value. I've been watching real estate in Jersey City as a casual observer since 2005. Back then there was a lot of buzz that JSQ was going to be the next big booming neighborhood and that it was going to happen soon. Still waiting.
I'm learning so much from all of your responses, thank you!
Quote:
I don't think you can stick to a rule like that in JSQ. It varies block-by-block. There are nice blocks north, south, east and west of the square. There are seedy blocks north, south, east and west of the square.
Does anyone have an opinion about the few blocks bordered by Sip Ave to the North, JFK Blvd to the East, and the Holy Name Cemetery to the West?
Well the really BIG project in JSQ (City Center Towers) is on hold/dead. But there are smaller projects such as re-habs of smaller 6-10 unit buildings, etc. going on. A few recent condo conversions have happened down closer to McGinley Square, which some people include in their definition of JSQ. Things are happening, but they're small things and not really "transformative" yet.
I don't think you can stick to a rule like that in JSQ. It varies block-by-block. There are nice blocks north, south, east and west of the square. There are seedy blocks north, south, east and west of the square. Really when you see an ad for a property that piques your interest, you need to go investigate the area in-person.
Whether Hamilton Park or JSQ is a better investment is an interesting question. Hamilton Park has certainly "arrived" and asking prices reflect that. You're buying high, but you can expect it to hold its value. JSQ is riskier. I know a couple of people who "bought low" in JSQ in 2006/7 who now own properties worth 25% less than what they paid for them. The crash affected JSQ a lot more than downtown, where prices have been flat-to-increasing all along. So sure, JSQ offers a chance to buy low/sell high, but I think you'll have to hold onto it for a long time to see changes happen that would cause a significant uptick in value. I've been watching real estate in Jersey City as a casual observer since 2005. Back then there was a lot of buzz that JSQ was going to be the next big booming neighborhood and that it was going to happen soon. Still waiting.
Yeah I'll definitely buy these exclaimations for certain. Although there are some really swanky lofts near JSQ like the Beacon (former med center) which are one of the few examples of classic Art Deco in the state of NJ.
Between Hamilton and JSQ, Hamilton will continue to hold its rental rates and appreciate. But as someone already pointed out that area is a well recognised address and thus scaled a major ramp on prices. It will continue to rent well and the rent will be higher than JSQ.
But JSQ has a few other things going for it. There is a steady flow of renters that will not dry as long as NYC and areas around northern Jersey continue to have high paying jobs. Secondly you will be buying low and hence will be able to grab any ramp up in prices. Rent-wise it might rent out for less than Hamilton Park but the difference would be about 200/300 pm Max for similar sq footage. Another thing is time and again this area has been in the spot light and there was active planning till the economy fizzled out. No one can take away the advantage it has given its proximity to NYC. Sooner than later the plans that were scraped will be revised because of its locational advantage. If you are planning to stay in for 5/6 years you should be able to make a pretty dime.
Well for what I've been looking at right now, the property in Hamilton Park can get about 1500 in rent, the one in JSQ (more square footage for about $40,000 less in purchase price) can get about 1600 in rent. These are both one bedroom.
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