SuchGreatHeights wrote:
Hi JListers,

I'm brand new here, though I've lurked for a little while. It's fun to pop in--such lively debates! Anyhow, I was curious for your opinions on rentals and real estate. Firstly, this past spring, my wife and I bought a house up in the Heights on Sherman Place. We love the neighborhood and in particular our street. I was pleasantly surprised by the colors and beauty that this fall has brought to our corner of the hood. We're also extremely excited about Mod Cup as well as the recent opening of 942 Summit.
However, with this said, I'm slightly kicking myself for not looking further around or near Journal Square as it seems the next logical real estate boom for Jersey City. So, my query is JListers, would a modest 1 bedroom condo around or near Journal Square, perhaps McGinnley Square even, be a worthy investment? It would serve as a rental income, and I'm aiming for a 10 to 15 minute distance to the Path. My hope is to make a move in the next 2 to 3 years. Decent idea or waste of time, thoughts? Thanks for reading.

SuchGreatHeights wrote:
Hi JListers,

I'm brand new here, though I've lurked for a little while. It's fun to pop in--such lively debates! Anyhow, I was curious for your opinions on rentals and real estate. Firstly, this past spring, my wife and I bought a house up in the Heights on Sherman Place. We love the neighborhood and in particular our street. I was pleasantly surprised by the colors and beauty that this fall has brought to our corner of the hood. We're also extremely excited about Mod Cup as well as the recent opening of 942 Summit.
However, with this said, I'm slightly kicking myself for not looking further around or near Journal Square as it seems the next logical real estate boom for Jersey City. So, my query is JListers, would a modest 1 bedroom condo around or near Journal Square, perhaps McGinnley Square even, be a worthy investment? It would serve as a rental income, and I'm aiming for a 10 to 15 minute distance to the Path. My hope is to make a move in the next 2 to 3 years. Decent idea or waste of time, thoughts? Thanks for reading.

Wishful_Thinking wrote:
I wonder if all the development DTJC will ever, really impact on the Heights? I don't see DTJC ever getting so expensive that renters will feel "priced out" to the point that they will look for rentals in the Heights, given how much they will have to give up in terms of access to NYC, culture, restaurant and nightlife options. I suspect there will be some pressure around the margins of DTJC and JSQ.

What you will continue to see is movement to the Heights by people interested in buying property. There, I think, the contrast is more pronounced in terms of what you get for your money.

The Heights has a lot of poor residents, and while it wouldn't be neighborly to want to see them pushed out, it would be nice to see the mix shift to a demographic that would support at least a small % of the amenities (restaurants, bars, nice shops, etc.) that DTJC has. I don't see that happening, so long as the margins of DTJC and JSQ has less expensive housing options available, or there is some major initiative to make the Heights more accessible via mass-transit.

Wishful_Thinking wrote:
I wonder if all the development DTJC will ever, really impact on the Heights? I don't see DTJC ever getting so expensive that renters will feel "priced out" to the point that they will look for rentals in the Heights, given how much they will have to give up in terms of access to NYC, culture, restaurant and nightlife options. I suspect there will be some pressure around the margins of DTJC and JSQ.

What you will continue to see is movement to the Heights by people interested in buying property. There, I think, the contrast is more pronounced in terms of what you get for your money.

The Heights has a lot of poor residents, and while it wouldn't be neighborly to want to see them pushed out, it would be nice to see the mix shift to a demographic that would support at least a small % of the amenities (restaurants, bars, nice shops, etc.) that DTJC has. I don't see that happening, so long as the margins of DTJC and JSQ has less expensive housing options available, or there is some major initiative to make the Heights more accessible via mass-transit.

JGJDNYCJC wrote:
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fat-ass-bike wrote:
The biggest beneficiary to more high rises and high purchase prices are the banks - Any investor will be forced to increase rental prices to make their payments. If its a 10, 20, 30 year loan the risk of purchase becomes to high as an investment property as all and any rent payments will go towards the mortgage, thus the sale price will reflect the maximum an investor is prepared to make.
Only the investor who can buy an over inflated apartment outright or with a minimal loan will do well from high rental prices, thus many high rises don't have many owner occupiers and most rentals are owned by the developer to get their investment return

And homeowners. All of that enhanced retail is doing wonders for my asset. Granted I moved in mid-2012 before the big bumrush into DTJC.

fat-ass-bike wrote:
The biggest beneficiary to more high rises and high purchase prices are the banks - Any investor will be forced to increase rental prices to make their payments. If its a 10, 20, 30 year loan the risk of purchase becomes to high as an investment property as all and any rent payments will go towards the mortgage, thus the sale price will reflect the maximum an investor is prepared to make.
Only the investor who can buy an over inflated apartment outright or with a minimal loan will do well from high rental prices, thus many high rises don't have many owner occupiers and most rentals are owned by the developer to get their investment return

MadMan wrote:
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papadage wrote:
Too bad it's all Tacos, Pizza and Burgers.

What about Talde?

DouglasReynholm wrote:
Time to move to Newark !

Lightrail, Symphony Hall, Arts Center, Red Bull Arena, The Rock, Penn Station / Broad Street Station ..Teachers Village, NJIT, Rutgers, Seton Hall Law, Newark Museum, Military Park/Washington Park . . .

DouglasReynholm wrote:
Time to move to Newark !

Lightrail, Symphony Hall, Arts Center, Red Bull Arena, The Rock, Penn Station / Broad Street Station ..Teachers Village, NJIT, Rutgers, Seton Hall Law, Newark Museum, Military Park/Washington Park . . .

CdeCoincy wrote:
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bodhipooh wrote:
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Bubble_Tea wrote:
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fat-ass-bike wrote:
Lets not kid ourselves, many of these new high rises are being built by the same developers and investors and will often use the same realtors as other developers to rent out these properties.
It wouldn't surprise me that there is a simple formula used to maintain a certain price - Not for one minute would there be any price war or lowering of prices and realtors would push tenants into developer owned rentals then privately own rentals.

A simple formula?? This isn't voodoo. Rental prices are determined on the market, on the basis of supply and demand.

Dude, don't bother. Conspiracy theorists are impervious to logic. He is convinced there is a fix, and not enough is being done to keep DTJC poor or lower middle class. That's his main concern right now. The rental market in DTJC is RED HOT. This is not some sort of conspiracy theory. Lots of people are flocking to DTJC and the prices reflect that. Every building coming on the market is leased up within a month or two, at pretty much asking price. The best "deal" you will score is a free month's rent with little room for negotiating. If you don't want it, someone else will. I see no slowing down any time soon. The way buildings are coming onto the market, there is little competition between them: as one rents out, the next opens up for leasing. Warren at York was 90% leased in a month, and so was The Art House.

agree - the more people who move here, the more people move here. When colleague move here and tell their co-workers about the commute, the restos, etc. more people check out dtjc and maybe other 'hoods as well. As far as a price fixing conspiracy among landlords, remember: there is no honor among thieves.

papadage wrote:
Too bad it's all Tacos, Pizza and Burgers.

bodhipooh wrote:
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Bubble_Tea wrote:
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fat-ass-bike wrote:
Lets not kid ourselves, many of these new high rises are being built by the same developers and investors and will often use the same realtors as other developers to rent out these properties.
It wouldn't surprise me that there is a simple formula used to maintain a certain price - Not for one minute would there be any price war or lowering of prices and realtors would push tenants into developer owned rentals then privately own rentals.

A simple formula?? This isn't voodoo. Rental prices are determined on the market, on the basis of supply and demand.

Dude, don't bother. Conspiracy theorists are impervious to logic. He is convinced there is a fix, and not enough is being done to keep DTJC poor or lower middle class. That's his main concern right now. The rental market in DTJC is RED HOT. This is not some sort of conspiracy theory. Lots of people are flocking to DTJC and the prices reflect that. Every building coming on the market is leased up within a month or two, at pretty much asking price. The best "deal" you will score is a free month's rent with little room for negotiating. If you don't want it, someone else will. I see no slowing down any time soon. The way buildings are coming onto the market, there is little competition between them: as one rents out, the next opens up for leasing. Warren at York was 90% leased in a month, and so was The Art House.

Bubble_Tea wrote:
Quote:

fat-ass-bike wrote:
Lets not kid ourselves, many of these new high rises are being built by the same developers and investors and will often use the same realtors as other developers to rent out these properties.
It wouldn't surprise me that there is a simple formula used to maintain a certain price - Not for one minute would there be any price war or lowering of prices and realtors would push tenants into developer owned rentals then privately own rentals.

A simple formula?? This isn't voodoo. Rental prices are determined on the market, on the basis of supply and demand.

papadage wrote:
Too bad it's all Tacos, Pizza and Burgers.

fat-ass-bike wrote:
Lets not kid ourselves, many of these new high rises are being built by the same developers and investors and will often use the same realtors as other developers to rent out these properties.
It wouldn't surprise me that there is a simple formula used to maintain a certain price - Not for one minute would there be any price war or lowering of prices and realtors would push tenants into developer owned rentals then privately own rentals.

GrovePath wrote:
I know a person looking. What are the cheapest 1 and 2 bedroom apartments in Downtown -- vs. -- the cheapest in Journal Square or The Heights? Please try to keep it to anything that has just leased this year -- or is still available -- also please give cross streets and/or area. Thanks

GrovePath wrote:
I know a person looking. What are the cheapest 1 and 2 bedroom apartments in Downtown -- vs. -- the cheapest in Journal Square or The Heights? Please try to keep it to anything that has just leased this year -- or is still available -- also please give cross streets and/or area. Thanks

jcguy05 wrote:
yeah i agree, all those are luxury rentals that they will price at the higher end of the price range, just like the monaco towers, and they still rented out.

There maybe some short lived 1 month free incentive but dont expect much price changes.

The downtown jc rental market being so close to nyc will only see a a material impact from wall street / economy tanking like during 2007-2009. Rent went down 10-20% during that time, but then zapped right back higher as the financials stabilized.

hitchcock wrote:
Our rent keeps going up, and we're not sure how much longer we can afford to stay in downtown JC.

But what about all those high rises being built? Will they wind up lowering rents?

moobycow wrote:
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VA2015 wrote:

I will also add that i think the new rentals will affect the brownstone/old construction rentals differently because of one word: amenities. The "charm" of 1930s electrical systems in brownstones wears off quick and isn't necessarily compensated for with those cute exposed brick walls. Compare that to a place with washer/dryer/dishwasher in unit, elevator, gym in the building, skyline views, closer to transit options, etc. and I don't think people are going to pay the same rent for say a 1500 sq. foot brownstone apt. in the Village vs. a 1500 sq. foot (or even 800 square foot) luxury condo.

The high rises have always been more expensive and will remain so. It doesn't mean the brownstones won't also get pulled up. One things the brownstones generally have going for them is that the rent is a bit more stable. Families renting out their unit often won't raise rents much, or at all.

VA2015 wrote:
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papadage wrote:
Too bad it's all Tacos, Pizza and Burgers.

Disagree. The places I'm referring to include:

Word bookstore/cafe
Roman Nose
Monty's public house
downtown yogurt
two boots
left bank burger bar
3rd and vine
union republic
the raven boutique
pig and pepper
tittlemouse and co. consignment
gia gelato
Merseles studios

...and that's just off the top of my head

I will also add that i think the new rentals will affect the brownstone/old construction rentals differently because of one word: amenities. The "charm" of 1930s electrical systems in brownstones wears off quick and isn't necessarily compensated for with those cute exposed brick walls. Compare that to a place with washer/dryer/dishwasher in unit, elevator, gym in the building, skyline views, closer to transit options, etc. and I don't think people are going to pay the same rent for say a 1500 sq. foot brownstone apt. in the Village vs. a 1500 sq. foot (or even 800 square foot) luxury condo.

VA2015 wrote:

I will also add that i think the new rentals will affect the brownstone/old construction rentals differently because of one word: amenities. The "charm" of 1930s electrical systems in brownstones wears off quick and isn't necessarily compensated for with those cute exposed brick walls. Compare that to a place with washer/dryer/dishwasher in unit, elevator, gym in the building, skyline views, closer to transit options, etc. and I don't think people are going to pay the same rent for say a 1500 sq. foot brownstone apt. in the Village vs. a 1500 sq. foot (or even 800 square foot) luxury condo.