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Re: Is Jersey City Real Estate in a bubble?
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bodhipooh wrote:
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SRhia wrote:
Is it only me, or do others also feel that the Gannon is priced very high? I understand the high rises with amenities (door man, pool, etc) can ask for a premium, but I don't think the Gannon has a pool? Or doorman???

Just curious, and want to understand.


Already discussed previous, but I will reiterate a few things:

This building is definitely overpriced. So much so that prices had to be adjusted a few months (6?) after they started to sell them. I have been inside twice, to look at units, and there is no way I would buy there. ZERO amenities (except for a nicely executed roof deck with nice grills) but really odd layouts in some units. The largest units have a lot of empty space that would be hard to put to use. They have some nice touches in some units (neatly done wood inlays along the sides) with BEAUTIFUL kitches (a huge plus to me, but others may think it is a waste) and some tacky/weird choices (illuminated crown moulding!?)

In conversation with the guy in charge (very nice and proper man) he tries top spin of $/sf as not applicable to JC (??) but the truth is that those Gannon units are still too high, even after the price adjustment. I think they were betting on low inventory for condos driving sales, but almost a year later and they have sold less than half the units. The last time I toured the place (about 4 months ago?) they had only sold 7 or 8 units (out of 27-28?) Very slow pace, obviously. If things do go south in the DTJC market, they will be hurting. And, by this time next year, The Oakman will be open and they will be competing against a building that has true luxury amenities. It will be a tough sale for The Gannon.


I LOLed everytime i walk by the building or one of their signs. Lets see...low rise... with little amenities...not waterfront, or even a very well laid out area. Asking for how much?

But i bet they will manage to sell them to some fools at the price they are asking lol

Posted on: 2015/10/23 15:32
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Re: Is Jersey City Real Estate in a bubble?
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SRhia wrote: Thank you @jcguy05 for the long reply! I'm curious though (and this is for all real estate investors): what is the advantage/disadvantage of cashing out? Assuming someone brought a property for investment (renting out) 5 years ago, and is currently breaking even (or making money) on rent. Why (or why not) would you cash out now? I can think of: Advantage: - cashing out to get cash on hand. - Cash can be available for next investment property when market crashes. Or cash available to make other investments (eg stocks, etc); - less to worry about (no tenants calling about problems!!!) Disadvantage (??? Or perhaps rather "reasons to keep it"???): - Tenant is already paying rent, so you're building equity. Why not keep it??? In 30 years (or length of mortgage), you'll own the property. And given it's a long time horizon, the property will appreciate in value by then anyway. - no need to go through the hassle of selling (probably not a legit reason So - did I miss something? Why are some others reasons to sell vs. keep an investment property knowing the market is going down? Trying to learn here (since looks like there're some pros here)
Disadvantage: Taxes, unless you can make a 1031 exchange work (which is not easy and you are then buying at the peak) you lose a good chunk of equity that is currently working for you.
THIS. By the time you factor out original closing costs, realtor fees, whatever other fees associated with selling, and all the federal real estate taxes, you may have VERY LITTLE to show for your investment unless the property has really appreciated A LOT. If you are talking about a 10% gain, you haven't made any money, really. True story: a friend of mine is about to clear 100K on an investment property (after owning it for 10 years) and his take on the whole experience is "NEVER AGAIN". Once you factor in all the associated costs and headaches from the past 10 years, along with costs I mentioned above, the "gain" is reduced to almost nothing. All these TV shows make it look like an easy thing to do, but the market can be tricky (and fickle) and unless you are flipping for huge immediate gain, your long term investment must really, really appreciate for it to be worthwhile or profitable.
You lose 10% the second you buy a property, like a new car. So yes need a lot more than 10%, the price appreciation in dtjc from low (2010) to the high (now) is 70-100%. The taxes are only on the net profit also, and for condos, there is not a lot you need to do or pay in term of upkeeps, it pretty much runs itself, especially in those waterfront highrises where you have quality tenants. So the numbers become easy to crunch: (price paid*1.1) / ((rent - condo fees - tax)*11). Usually anything <25 years is ok, provided the prices are reasonable (it is not right now). For multi-families, it's a lot more work and cost. But when i did the numbers you can get the return down to close to 15 years if you know what you doing in term of renovating old houses and all the **** that comes with - getting it certified, tenants, upkeep, etc.. It's more work for more reward, and you need to know a lot more.

Posted on: 2015/10/23 15:18
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Re: Is Jersey City Real Estate in a bubble?
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And that 15K in taxes is a gift, given how NJ pays for most of JC school costs!

Posted on: 2015/10/23 15:13
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In general, I feel that the only safe bet in DTJC is abated, new construction, and only if you are willing/able to stay put for a long time. If there is a correction in the market in the near future, all properties (new or old) will likely lose value, so short term investments are not looking good. And, given the possibility of a reval in the immediate future, you can count on taxes going up on any older property in DTJC.

This is the stuff that is in mind all the time as I consider my future in JC. Call me selfish, but the idea of paying 15K+ on RE taxes is not at all appealing to me. As someone else mentioned in this thread, or perhaps it was an other, you only need to go just about anywhere else in the country to see how towns and cities manage their RE taxes vis-a-vis provided services to understand how INCREDIBLY OVERTAXED we are, or how little we get in return for what we pay. And, while the idea of a brownstone is super alluring, I can't stomach paying the hugely inflated current prices. Maybe if/when the market tanks I can jump in. For now, I am standing by the sidelines watching it all unfold.

Posted on: 2015/10/23 14:35
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Re: Is Jersey City Real Estate in a bubble?
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landshark wrote:
Quote:

SRhia wrote:
Thank you @jcguy05 for the long reply!

I'm curious though (and this is for all real estate investors): what is the advantage/disadvantage of cashing out? Assuming someone brought a property for investment (renting out) 5 years ago, and is currently breaking even (or making money) on rent. Why (or why not) would you cash out now? I can think of:

Advantage:
- cashing out to get cash on hand.
- Cash can be available for next investment property when market crashes. Or cash available to make other investments (eg stocks, etc);
- less to worry about (no tenants calling about problems!!!)

Disadvantage (??? Or perhaps rather "reasons to keep it"???):
- Tenant is already paying rent, so you're building equity. Why not keep it??? In 30 years (or length of mortgage), you'll own the property. And given it's a long time horizon, the property will appreciate in value by then anyway.
- no need to go through the hassle of selling (probably not a legit reason

So - did I miss something? Why are some others reasons to sell vs. keep an investment property knowing the market is going down?

Trying to learn here (since looks like there're some pros here)


Disadvantage:
Taxes, unless you can make a 1031 exchange work (which is not easy and you are then buying at the peak) you lose a good chunk of equity that is currently working for you.


THIS. By the time you factor out original closing costs, realtor fees, whatever other fees associated with selling, and all the federal real estate taxes, you may have VERY LITTLE to show for your investment unless the property has really appreciated A LOT. If you are talking about a 10% gain, you haven't made any money, really.

True story: a friend of mine is about to clear 100K on an investment property (after owning it for 10 years) and his take on the whole experience is "NEVER AGAIN". Once you factor in all the associated costs and headaches from the past 10 years, along with costs I mentioned above, the "gain" is reduced to almost nothing. All these TV shows make it look like an easy thing to do, but the market can be tricky (and fickle) and unless you are flipping for huge immediate gain, your long term investment must really, really appreciate for it to be worthwhile or profitable.

Posted on: 2015/10/23 14:09
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Re: Is Jersey City Real Estate in a bubble?
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SRhia wrote:
Is it only me, or do others also feel that the Gannon is priced very high? I understand the high rises with amenities (door man, pool, etc) can ask for a premium, but I don't think the Gannon has a pool? Or doorman???

Just curious, and want to understand.


Already discussed previous, but I will reiterate a few things:

This building is definitely overpriced. So much so that prices had to be adjusted a few months (6?) after they started to sell them. I have been inside twice, to look at units, and there is no way I would buy there. ZERO amenities (except for a nicely executed roof deck with nice grills) but really odd layouts in some units. The largest units have a lot of empty space that would be hard to put to use. They have some nice touches in some units (neatly done wood inlays along the sides) with BEAUTIFUL kitches (a huge plus to me, but others may think it is a waste) and some tacky/weird choices (illuminated crown moulding!?)

In conversation with the guy in charge (very nice and proper man) he tries top spin of $/sf as not applicable to JC (??) but the truth is that those Gannon units are still too high, even after the price adjustment. I think they were betting on low inventory for condos driving sales, but almost a year later and they have sold less than half the units. The last time I toured the place (about 4 months ago?) they had only sold 7 or 8 units (out of 27-28?) Very slow pace, obviously. If things do go south in the DTJC market, they will be hurting. And, by this time next year, The Oakman will be open and they will be competing against a building that has true luxury amenities. It will be a tough sale for The Gannon.

Posted on: 2015/10/23 14:04
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Re: Is Jersey City Real Estate in a bubble?
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SRhia wrote:
Thank you @jcguy05 for the long reply!

I'm curious though (and this is for all real estate investors): what is the advantage/disadvantage of cashing out? Assuming someone brought a property for investment (renting out) 5 years ago, and is currently breaking even (or making money) on rent. Why (or why not) would you cash out now? I can think of:

Advantage:
- cashing out to get cash on hand.
- Cash can be available for next investment property when market crashes. Or cash available to make other investments (eg stocks, etc);
- less to worry about (no tenants calling about problems!!!)

Disadvantage (??? Or perhaps rather "reasons to keep it"???):
- Tenant is already paying rent, so you're building equity. Why not keep it??? In 30 years (or length of mortgage), you'll own the property. And given it's a long time horizon, the property will appreciate in value by then anyway.
- no need to go through the hassle of selling (probably not a legit reason

So - did I miss something? Why are some others reasons to sell vs. keep an investment property knowing the market is going down?

Trying to learn here (since looks like there're some pros here)


Disadvantage:
Taxes, unless you can make a 1031 exchange work (which is not easy and you are then buying at the peak) you lose a good chunk of equity that is currently working for you.

Posted on: 2015/10/23 13:17
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Re: Is Jersey City Real Estate in a bubble?
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user1111 wrote:
Don't get butt hurt, they are under water and one of them post here regularly. No need for me to make shit up. Get over it.


I don't need names. Name of condo building, approx purchase price in 2006. You don't have those two pieces of info so stfu.

There is no luxury condo building bought in 2006 in dtjc that is worth less today untless you spell dtjc G-R-E-E-N-V-I-L-L-E

Thanks for replying back with a list of foreclosures which have nothing to do with your original statement....


I never use the word luxury, because I do not consider anything down there luxury. I am suppose to stfu because you don't like what I have to say or where I live. FYI I love where I live and you can eat my ass, all the bullshit you spit you should be quite good at it.


You're the most bitter guy on JClist. Congrats.

Posted on: 2015/10/23 12:55
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Re: Is Jersey City Real Estate in a bubble?
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Thank you @jcguy05 for the long reply!

I'm curious though (and this is for all real estate investors): what is the advantage/disadvantage of cashing out? Assuming someone brought a property for investment (renting out) 5 years ago, and is currently breaking even (or making money) on rent. Why (or why not) would you cash out now? I can think of:

Advantage:
- cashing out to get cash on hand.
- Cash can be available for next investment property when market crashes. Or cash available to make other investments (eg stocks, etc);
- less to worry about (no tenants calling about problems!!!)

Disadvantage (??? Or perhaps rather "reasons to keep it"???):
- Tenant is already paying rent, so you're building equity. Why not keep it??? In 30 years (or length of mortgage), you'll own the property. And given it's a long time horizon, the property will appreciate in value by then anyway.
- no need to go through the hassle of selling (probably not a legit reason

So - did I miss something? Why are some others reasons to sell vs. keep an investment property knowing the market is going down?

Trying to learn here (since looks like there're some pros here)

Posted on: 2015/10/23 12:22
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Re: Is Jersey City Real Estate in a bubble?
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user1111 wrote:
Don't get butt hurt, they are under water and one of them post here regularly. No need for me to make shit up. Get over it.


I don't need names. Name of condo building, approx purchase price in 2006. You don't have those two pieces of info so stfu.

There is no luxury condo building bought in 2006 in dtjc that is worth less today untless you spell dtjc G-R-E-E-N-V-I-L-L-E

Thanks for replying back with a list of foreclosures which have nothing to do with your original statement....


I never use the word luxury, because I do not consider anything down there luxury. I am suppose to stfu because you don't like what I have to say or where I live. FYI I love where I live and you can eat my ass, all the bullshit you spit you should be quite good at it.

Posted on: 2015/10/23 10:59
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Re: Is Jersey City Real Estate in a bubble?
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There are shitty areas of DTJC too. Maybe those 35 are dumps. Or the homeowner lost their job.


BLAH, BLAH, BLAH, BLAH who cares. They are under water.


for the millionth time on this forum. please do not link to maps which put anything west of I-78 as within DTJC. Anything west of I78 is not DTJC any more than DTJC is NYC.

Posted on: 2015/10/23 5:42
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Re: Is Jersey City Real Estate in a bubble?
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Don't get butt hurt, they are under water and one of them post here regularly. No need for me to make shit up. Get over it.


I don't need names. Name of condo building, approx purchase price in 2006. You don't have those two pieces of info so stfu.

There is no luxury condo building bought in 2006 in dtjc that is worth less today untless you spell dtjc G-R-E-E-N-V-I-L-L-E

Thanks for replying back with a list of foreclosures which have nothing to do with your original statement....

Posted on: 2015/10/23 5:37
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Re: Is Jersey City Real Estate in a bubble?
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There's nothing worse than being "underwater" and I have lots of friends who purchased a 1 bdrm, later had a baby, and came to the table with a check when they were forced to sell.
I purchased a crack house in the downtown in 2007.,,.my hand shook when I purchased directly from the sellers and I was signing checks...spent a year gut/rehabbing...then listed the place and couldn't sell for what I had invested in it.
Ended up buying out my fellow investors and moving in. We installed outdoor security cams an indoor alarms and waited it out. Second guessed ourselves a bunch of times while we wrote out mortgage checks.
Fast forward 8 years and we could sell at approx double what we purchased & invested...and now don't want to move because everything is gentrified.
Real estate is highly cyclical, historically in 10 year periods. There are always bargains to be had, even in hot housing markets but if I can give any advise at all: max out your 401k, live belie your means and if you gave spare cash after that...consider real estate carefully.

Posted on: 2015/10/22 23:47
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Re: Is Jersey City Real Estate in a bubble?
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Time horizon is dependent on interest rates, my prediction is 2-3 years when the impact will be felt. It will not be a big pop like in 08 but a slow multi-year grind downwards - end result is the same, your property loses value.


I agree 100%. Slower multi-year decline in prices, caused by 5 main factors:

1. Foreign investors cutting back spending on US real estate
2. Interest rates ticking up
3. Inventory increasing as more owners look to sell
4. Layoffs of highly-paid employees in banking & tech as stock markets stay relatively flat and venture capitalists stop pouring money into startups.
5. Home buyers starting to look at suburbs again for value and schools (I personally know several Millennials that are starting families and have moved or are moving to the suburbs because it costs as much to put one child in day care in downtown JC/Hoboken/Weehawken as it costs to rent a luxury apartment)

Posted on: 2015/10/22 23:33
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Re: Is Jersey City Real Estate in a bubble?
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I gotta say, the few people I know who lost their homes or properties to foreclosure or short sale all chose to leverage up property they bought in much cheaper times or inherited. Sometimes the market bites you, but it seems just as often you shoot yourself in the foot.

Being underwater does not mean you lose your home as long as you keep paying the mortgage. My 2004 Heights purchase was underwater according to the criminally executed 2012 appraisals I got. It was no problem except I couldn't refi at that time. But I had a 5.5% 30 year, not some "creative" mortgage.

JCguy reinforces what I've said several times in this long running thread, look at the P/E, aka GRM. Ridiculous prices compared to what it would rent for is simply unsustainable, just like ridiculous P/E's on a stock. It's a bet on growth, and at some point the bet gets called, or you get tired of the negative cashflow.

Posted on: 2015/10/22 22:46
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iGreg wrote:
Figure 700k for this looked like tits on bull to some half assed yuppie trying' to escape BKLYN.

http://www.zillow.com/homedetails/72- ... y-NJ-07306/38891294_zpid/


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That's why everything is going rental.

Posted on: 2015/10/22 22:00
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Re: Is Jersey City Real Estate in a bubble?
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Um, in Foreclosure doesn't necessarily mean it was under water. The bank/lending company foreclosed because of non-payment...


UNDERWATER REAL-ESTATE: A home purchase loan with a higher balance than the free-market value of the home. This situation prevents the homeowner from selling the home unless s/he has cash to pay the loss out of pocket. It also prevents the homeowner from refinancing in most cases. Thus, if the homeowner wants to sell the home because s/he can't afford the mortgage payments anymore, perhaps because of a job loss, the home will fall into foreclosure unless the borrower is able to renegotiate the loan.



Exactly. The first sentence was "UNDERWATER REAL-ESTATE: A home purchase loan with a higher balance than the free-market value of the home." None of us know what the outstanding balance is on any of those mortgages, nor what the current free-market value is of said houses.

Here's the other definition:

fore?clo?sure


/?f?r?kl?ZH?r/


noun

noun: foreclosure; plural noun: foreclosures


the process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.

Posted on: 2015/10/22 21:28
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Figure 700k for this looked like tits on bull to some half assed yuppie trying' to escape BKLYN.

http://www.zillow.com/homedetails/72- ... y-NJ-07306/38891294_zpid/


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Posted on: 2015/10/22 21:20
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Um, in Foreclosure doesn't necessarily mean it was under water. The bank/lending company foreclosed because of non-payment...


UNDERWATER REAL-ESTATE: A home purchase loan with a higher balance than the free-market value of the home. This situation prevents the homeowner from selling the home unless s/he has cash to pay the loss out of pocket. It also prevents the homeowner from refinancing in most cases. Thus, if the homeowner wants to sell the home because s/he can't afford the mortgage payments anymore, perhaps because of a job loss, the home will fall into foreclosure unless the borrower is able to renegotiate the loan.


Posted on: 2015/10/22 21:12
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SRhia wrote:
@jcguy05 - how long do you think it'll take prices to come down? We've been dreaming to upgrade from an apartment to brownstone, and is now saving money. I know no one can predict the future, but I'm interested in hearing your thoughts on how long it will take to deflate this time around.

Just as an anecdote, I have a friend who lives in Brooklyn Heights. Her husband is in finance (a "bond" guy), and have told his wife (my friend) to sell their apartment there. He sees a major downturn (worse than 2008), and for much longer, and therefore does not want their assets tied to illiquid real estate. Her apartment was sold in 2 days, in cash, above asking price. She also said that a lot of her neighbors have sold as well in the area.




Time horizon is dependent on interest rates, my prediction is 2-3 years when the impact will be felt. It will not be a big pop like in 08 but a slow multi-year grind downwards - end result is the same, your property loses value.

Also to be clear i am making this comment specifically to downtown jersey city, where the risk is completely skewed. You have 500k 2brs 3 years ago now worth 1mil. So that 1 mil 2brs has a lot of room to fall in price. Versus for example a 600k house in rutherford that appreciated maybe 50-100k in the same 3 year period, your risk is much much lower in that case.

A brownstone in downtown jersey city i consider to be a very high risk play, most of them are well above 1mil now.

I have sold both of my investment condos in jersey city waterfront and couldnt believe the prices i got for them. Buyers are all clueless investors who just going to rent them out, they are looking at close to 40 year return after tax/condo fees at today's rent, even lower after abatement ends in 8 years. Completely irrational. For dtjc, only have the condo i am living in now, but fully leveraged with max mortgage.

Someone also made a comment most are foreign buyers with cash offers, i dont think that's completely true in downtown jersey city. Also lets be clear - those foreign buyers with cash are just 1 group - the chinese. And the cash over there is also drying up (i invested in shanghai real estate market for many years).

Quote:

SRhia wrote:
Quote:

JCMan8 wrote:
SRhia, the last time we had a major downturn, the stock market plummeted. Do you know if the people you are referring to also took their money out of the market?


The husband told me (1) not to go into bonds (coming from a bond guy); (2) not time for commodities yet either; (3) stock market is still the place to be for the long run. I think what he meant (if I understood him correctly) is that the stock market may/probably will tank (along with everything), but once that happens, between bonds and stocks, he'd still put his money in stocks as that would still outperform bonds in the loooooong road to recovery.

I'm shifting my portfolio to cash (not just based on what he told me, but from all the reading I've done), and is waiting for that opportunity that I'll be set for retirement. Fingers crossed!!!!!

PS I just hope I'll pull the trigger at the right time. Otherwise, the bet could go very wrong, and I'll lose my pants and say bye bye to retirement


It's all about risk distribution, keep 100% of your networth in cash has its own problems. But i agree i wouldnt keep any money in bonds. Even though a lot of smart guys got burned badly shorting them thinking the rates will increase sooner than later (it still hasnt).

Stock of quality companies is still my goto place, especially those that will benefit from interest going higher indirectly, like ADP. Also have a pretty decent distribution in quality companies dependent on oil and gold, like miners and oil companies, given how significant the drop was already.

Then there is always cash, american express savings insures up to 250k and has near a 1% yield which isnt too bad all things considered right now.

Back to downtown real estate, i wouldnt put any money in it now given the price it's at. Thinking about even selling the condo i am living in and just rent or buy one of those cheap 2-3br coops in fort lee for 250k to hold me over for the next 5-10 years. But then wife comes into play and against it - all this sentiment stuff about this being our home etc..etc. After factoring the risk of an unhappy wife vs potential of losing money as prices fall, i decided the latter is a much more acceptable risk to take so we will stay put.

If you must buy a big brownstone type building near dtjc, consider a nice 2 family in bayonne at around 400k, add 50k to rennovate, then rent out 1 family to cover the tax and interest on the mortgage. People will laugh at you for living in bayonne, but you will be much more financially protected than living in a 1mil brownstone here.

OK /rant off :)

Posted on: 2015/10/22 21:08
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Re: Is Jersey City Real Estate in a bubble?
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Um, in Foreclosure doesn't necessarily mean it was under water. The bank/lending company foreclosed because of non-payment...

Posted on: 2015/10/22 21:07
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Re: Is Jersey City Real Estate in a bubble?
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There are shitty areas of DTJC too. Maybe those 35 are dumps. Or the homeowner lost their job.


BLAH, BLAH, BLAH, BLAH who cares. They are under water.

Posted on: 2015/10/22 20:54
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There are shitty areas of DTJC too. Maybe those 35 are dumps. Or the homeowner lost their job.

Posted on: 2015/10/22 20:39
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User: I really don't understand what you intend to show with the downtown foreclosures you linked to?

A lot of them seem to have been bought at or below market price at the time, and then buyers made stupid decisions like taking out second mortgages or maybe fell upon hard times and stopped paying? Could be other reasons besides pricing that they haven't been swept off the market.

That data can't really be taken as a sign of overvaluation in the downtown market?

Full disclosure: I rent and not in DT.

Posted on: 2015/10/22 20:38
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Posted on: 2015/10/22 20:01
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Don't get butt hurt, they are under water and one of them post here regularly. No need for me to make shit up. Get over it.

Posted on: 2015/10/22 19:05
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I wonder if you have to further break down the statistics, by ward or neighborhood. For instance, in NYC there are lots of foreclosures in outlying, less gentrified areas like Flatbush but practically none in Manhattan. The average may not show the full picture

I know many of my fellow owners in our building in the Heights are either underwater or equity neutral, because the Heights is still stuck in the doldrums. I bet the picture for prime downtown neighborhoods is very different.
I have two personal friends downtown who are under water. Their condos are nit worth what they paid in 2006.


As with most of your anti-downtown posts, I call bull. Name of condo building and amount bought and value today please? There is no luxury condo building in downtown that is selling for less than it would be selling for in 2006.

Why are you so anti-downtown? Is it because you know there is literally no chance for GV to get better in the foreseeable future? The chances of GV getting better are the same chances that Bernie Sanders and Rand Paul sign on to the same ticket...

Posted on: 2015/10/22 18:37
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Re: Is Jersey City Real Estate in a bubble?
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T-Bird wrote:
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user1111 wrote:
Quote:

Wishful_Thinking wrote:
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I wonder if you have to further break down the statistics, by ward or neighborhood. For instance, in NYC there are lots of foreclosures in outlying, less gentrified areas like Flatbush but practically none in Manhattan. The average may not show the full picture

I know many of my fellow owners in our building in the Heights are either underwater or equity neutral, because the Heights is still stuck in the doldrums. I bet the picture for prime downtown neighborhoods is very different.
I have two personal friends downtown who are under water. Their condos are nit worth what they paid in 2006.


We bought pre-construction in 2007 and are up 20% to 25% based on recent sales in our building. Many units selling at and above asking price in a week or less. "Downtown" is a very broad description. A walkup in a 100 y/o plus building on sixth street is not the same as Crystal Point, 77 Hudson or a brownstone in Paulus Hook.


Difficult to understand how someone who bought in DTJC in 2006 is underwater. There must be other factors at play.

Posted on: 2015/10/22 17:51
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Re: Is Jersey City Real Estate in a bubble?
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user1111 wrote:
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Wishful_Thinking wrote:
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I wonder if you have to further break down the statistics, by ward or neighborhood. For instance, in NYC there are lots of foreclosures in outlying, less gentrified areas like Flatbush but practically none in Manhattan. The average may not show the full picture

I know many of my fellow owners in our building in the Heights are either underwater or equity neutral, because the Heights is still stuck in the doldrums. I bet the picture for prime downtown neighborhoods is very different.
I have two personal friends downtown who are under water. Their condos are nit worth what they paid in 2006.


We bought pre-construction in 2007 and are up 20% to 25% based on recent sales in our building. Many units selling at and above asking price in a week or less. "Downtown" is a very broad description. A walkup in a 100 y/o plus building on sixth street is not the same as Crystal Point, 77 Hudson or a brownstone in Paulus Hook.

Posted on: 2015/10/22 17:42
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SRhia wrote:
Is it only me, or do others also feel that the Gannon is priced very high? I understand the high rises with amenities (door man, pool, etc) can ask for a premium, but I don't think the Gannon has a pool? Or doorman???

Just curious, and want to understand.


Yes, overpriced in my opinion. Have they sold any units at the prices they're asking?

Posted on: 2015/10/22 16:08
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