U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New Jersey
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-11-2014, 09:21 PM
 
48 posts, read 102,783 times
Reputation: 31

Advertisements

Building off of a discussion I was having with a friend - Which would you consider a better value/more upside potential for real estate appreciation over the long-term (20+ years)?

A) A simple/small (600k or so) house in one of the *favorite* nyc-commuter towns (i.e. Ridgewood, Hohokus, Wykoff, etc)

B) A nicer/larger (600k or so) house farther out in less-commutable areas like Oakland, Mahwah, Norwood, Northvale, Montvale, Park Ridge etc (note - I am less familiar with these areas, so sorry if this grouping seems ridiculous)

This is assuming public schools will be needed (good to great quality) and no need to get to NYC on a regular basis (non-commuter).

Last edited by rochie; 11-11-2014 at 10:51 PM..
Rate this post positively Reply With Quote Quick reply to this message

 
Old 11-11-2014, 09:32 PM
 
3,984 posts, read 6,596,481 times
Reputation: 2881
C) Jersey City
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2014, 08:29 AM
 
48 posts, read 102,783 times
Reputation: 31
Jersey city has it plusses. Are good public schools one of them?

In the end, if there is no need to commute, is it still financially beneficial to buy in a commuter town? Or is it all the same from a financial standpoint?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2014, 08:40 AM
 
Location: Randolph, NJ
4,073 posts, read 8,330,076 times
Reputation: 3251
It's hard to be sure of upside, and may not be accurate to generalize too much as each market/town has unique drivers.

But the top commuter towns do protect from downside, as it was shown that they held value better in the last recession.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2014, 09:31 AM
 
Location: N NJ --> NE FL 2015
1,411 posts, read 1,721,858 times
Reputation: 1223
I would say a). People are always trying to get into those towns because of their location, perception of prestige, schools etc. and that really hasn't changed in the last 20 years from what I've seen. IMHO, that perception should keep driving the prices up during good times and the price depreciation shouldn't be as bad as it would be for less desirable/remote towns during/after a recession.

I don't mean to make generalizations based on my own experience but I bought my house in Wyckoff back in 6/2012 in the range you referenced and my expectation was for a 2-3% annual price appreciation. I just had my house reviewed by my realtor (specializes in Wyckoff) to see if it's worth while to update our kitchen/baths and she conservatively estimated that my house has appreciated 16% since 2012 without the updated kitchen/bath.

You may argue that her estimate may be high just to kiss my a$$ but there are at least 4 comps within a quarter mile of my house to validate her claim. A family member bought their home in Oakland about the same time (in the $400k range) and my realtor indicated that they'd be lucky to break even today.

Perception is big in this area and it's hard to shake it off for the most part. I remember there was a lot of "new" money coming into Midland Park during the housing boom but they came back down to reality and have stayed there for the most part. Towns like Midland Park, Waldwick & Oakland are working class towns and I just don't see that "perception" changing in the next 20 years to match or exceed the price appreciation you woud see in your a) grouping.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2014, 10:54 AM
 
378 posts, read 515,789 times
Reputation: 229
Quote:
Originally Posted by rochie View Post
Building off of a discussion I was having with a friend - Which would you consider a better value/more upside potential for real estate appreciation over the long-term (20+ years)?

A) A simple/small (600k or so) house in one of the *favorite* nyc-commuter towns (i.e. Ridgewood, Hohokus, Wykoff, etc)

B) A nicer/larger (600k or so) house farther out in less-commutable areas like Oakland, Mahwah, Norwood, Northvale, Montvale, Park Ridge etc (note - I am less familiar with these areas, so sorry if this grouping seems ridiculous)

This is assuming public schools will be needed (good to great quality) and no need to get to NYC on a regular basis (non-commuter).

I would say group A is the better investment and I would put Mahwah in the group too, it has great schools, a train station, a commute better than most other town in your group "B", and low taxes, which are very very important. All things being equal, the towns with the greatest demand will be the ones that provide low taxes, great schools, and a reasonable commute, but even if you can get 2 out of 3, it should be a sound investment for the long term.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2014, 10:57 AM
 
378 posts, read 515,789 times
Reputation: 229
Quote:
Originally Posted by Ivan Putski View Post
I would say a). People are always trying to get into those towns because of their location, perception of prestige, schools etc. and that really hasn't changed in the last 20 years from what I've seen. IMHO, that perception should keep driving the prices up during good times and the price depreciation shouldn't be as bad as it would be for less desirable/remote towns during/after a recession.

I don't mean to make generalizations based on my own experience but I bought my house in Wyckoff back in 6/2012 in the range you referenced and my expectation was for a 2-3% annual price appreciation. I just had my house reviewed by my realtor (specializes in Wyckoff) to see if it's worth while to update our kitchen/baths and she conservatively estimated that my house has appreciated 16% since 2012 without the updated kitchen/bath.

You may argue that her estimate may be high just to kiss my a$$ but there are at least 4 comps within a quarter mile of my house to validate her claim. A family member bought their home in Oakland about the same time (in the $400k range) and my realtor indicated that they'd be lucky to break even today.

Perception is big in this area and it's hard to shake it off for the most part. I remember there was a lot of "new" money coming into Midland Park during the housing boom but they came back down to reality and have stayed there for the most part. Towns like Midland Park, Waldwick & Oakland are working class towns and I just don't see that "perception" changing in the next 20 years to match or exceed the price appreciation you woud see in your a) grouping.
I mostly agree with this. The prestige pecking order of Northern Jersey/Bergen towns has been the same for quite some time now, and I don't see it changing much for the most part. I would say that a few towns like Glen Rock have moved up in the pecking order, and so has Waldwick, mostly because it's surrounded by other far richer towns.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2014, 11:10 AM
 
2,535 posts, read 6,219,382 times
Reputation: 1595
Quote:
Originally Posted by Ivan Putski View Post
I would say a). People are always trying to get into those towns because of their location, perception of prestige, schools etc. and that really hasn't changed in the last 20 years from what I've seen. IMHO, that perception should keep driving the prices up during good times and the price depreciation shouldn't be as bad as it would be for less desirable/remote towns during/after a recession.

I don't mean to make generalizations based on my own experience but I bought my house in Wyckoff back in 6/2012 in the range you referenced and my expectation was for a 2-3% annual price appreciation. I just had my house reviewed by my realtor (specializes in Wyckoff) to see if it's worth while to update our kitchen/baths and she conservatively estimated that my house has appreciated 16% since 2012 without the updated kitchen/bath.

You may argue that her estimate may be high just to kiss my a$$ but there are at least 4 comps within a quarter mile of my house to validate her claim. A family member bought their home in Oakland about the same time (in the $400k range) and my realtor indicated that they'd be lucky to break even today.

Perception is big in this area and it's hard to shake it off for the most part. I remember there was a lot of "new" money coming into Midland Park during the housing boom but they came back down to reality and have stayed there for the most part. Towns like Midland Park, Waldwick & Oakland are working class towns and I just don't see that "perception" changing in the next 20 years to match or exceed the price appreciation you woud see in your a) grouping.
I would say she is dead on in her assessment I watch the real estate market like a hawk and you literally bought your house at the perfect time(the exact same time I purchased mine). In fact I lost out on a house on Fox Hollow in Wyckoff, it was on the market for $645K, reduced to $599K and sold for $575K( I bid more but I hadn't sold my house yet plus they had already accepted another offer when I put mine in and the seller went with that person...at least that is what I was told)...it was an incredible deal. That house right now is easily worth $650K.

Even though I lost out on that house and living in Wyckoff I'm still really happy with where we ended up. The house is much bigger and its a great neighborhood. Overall its a much better fit living situation wise but from an investment perspective I lost out bigtime...so far.

Anyway the point of the story is to find the right house, at the right price and know your downside. Appreciation should be lower on the priority list.

That said, as in all investments the riskiest plays always have the biggest upside. So if appreciation is all you care about I would actually look at areas that have not bounced back to pre-recession levels(which Wyckoff, Ridgewood and most of Bergen have). Oakland, Midland Park and possibly Waldwick would probably be my picks to have a chance for greater value appreciation percentage wise. My two cents...probably worth exactly that.

Last edited by Goldendoodle1969; 11-12-2014 at 11:42 AM..
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2014, 12:20 PM
 
Location: Brooklyn, NY
1,271 posts, read 2,995,914 times
Reputation: 832
Quote:
Originally Posted by EBWick View Post
C) Jersey City
The correct answer.

Otherwise, buying "for the appreciation" is foolish and a waste of time.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2014, 12:28 PM
 
Location: Randolph, NJ
4,073 posts, read 8,330,076 times
Reputation: 3251
Quote:
Originally Posted by BrownstoneNY View Post
The correct answer.

Otherwise, buying "for the appreciation" is foolish and a waste of time.

Perhaps.... if you choose to ignore the OP's criteria.
Rate this post positively Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:




Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New Jersey

All times are GMT -6.

© 2005-2022, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top