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Re: Sell or rent JSQ house?
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I live 3 blocks south of Montgomery on the Westside/McGinley Sq and id suggest looking around here. There are alot fantastic houses and it's a 20 minute walk to the path. You have 3 NJ transit bus lines and the dollar buses. We ride bikes 75% of the year which is like 7 minutes.

I moved here from downtown in May and I love it. In the past year more things have started to open here. We got a resteraunt and an adorable coffee shop. It will never be downtown but McGinley sq seems to be improving a lot.

The homeless encampment at JSQ will be pushed elsewhere. When I moved to JC in 2007, there was a huge encampment under the Embankment where Moishe's the moving company is now and Grove St was filled with the homeless. I wouldn't worry about that too much. The developer who is building the new buildings will see to that.

There is such little housing stock in JC in JSQ, the West side , and in the heights you may need to compromise. I got exceptionally lucky with my house on the west side but I had a friend who was looking for a year and just found something in the Western slope.

Posted on: 2016/2/28 10:07
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Re: Sell or rent JSQ house?
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I suggest looking directly east-south-east if you haven't. I also remember the homeless encampment at grove st where grove point now is. They would harass you for change when leaving Unlimited pizza or the liquor store next to the gazebo (both gone now).

Posted on: 2016/2/28 8:14
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Re: Sell or rent JSQ house?
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I started looking to buy in JSQ (having lived in the Heights for 7 years, and finding the lack of mass transit no longer tolerable), so what I have to add is the perspective as a potential purchaser, and not meant to discourage you rather illustrate how some people may experience the area, and articulate how that may impact on their decision to buy a home. I'm not talking about investment. I have to say I am struggling to see it's potential, the ability to walk to PATH notwithstanding.

Of course, a lot depends which block your house is on. North and West of JSQ seems nicer, as does the area closer to St. Peters' College, between JFK and Bergen Avenue. South of Montgomery gets nicer, but not really walkable to JSQ. The area immediately around JSQ is abysmal, with it's permanent homeless encampment.

I wish you and your family all the best, and your decision to sell may be the wisest unless you get a lot of feedback on the potential for your immediate neighborhood, vs. JSQ as a whole.

Posted on: 2016/2/27 22:08
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Re: Sell or rent JSQ house?
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Quote:

bellebottomblues wrote:
Hi all,

Thank you all for your feedback. We are leaning towards selling as we have a baby under a year old and are rather overwhelmed at the thought of renting.
Since my initial post I feel things are finally on the upswing. Just curious if you all think that potential buyers who are priced out of downtown would consider JSQ at this point? Our house would be at least double the price down there, it really is adorable and in a great location.
Thanks again!


Shoot I'll buy it.

Posted on: 2016/2/26 18:33
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Re: Sell or rent JSQ house?
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Hi all,

Thank you all for your feedback. We are leaning towards selling as we have a baby under a year old and are rather overwhelmed at the thought of renting.
Since my initial post I feel things are finally on the upswing. Just curious if you all think that potential buyers who are priced out of downtown would consider JSQ at this point? Our house would be at least double the price down there, it really is adorable and in a great location.
Thanks again!

Posted on: 2016/2/25 15:39
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Re: Sell or rent JSQ house?
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The median home price in Jersey City has gone up 45% from 2012 until now due various factors including the current low lending rates. These low rates are predicted to go up soon. It is a sellers market right now with bidding wars happening all over JC. These current market conditions could change if the rates go up.

Check out the below site to get a market analysis on what homes are selling for in your area and what your home's estimated value is. You can also get a monthly report to track the value.

www.HudsonCondoValue.com

Posted on: 2015/8/27 16:42
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Re: Sell or rent JSQ house?
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dtjcview wrote:
I suspect Brewster is a fan of Rich Dad, Poor Dad. The big advantage of going the real estate route is that it's a great way of building assets and generating income at low to no cost - and at less risk than most other forms of investment.


Heard of it but never read it. What I said upthread in post #9 is just arithmetic. SRhia: read that again, the difference is the borrowing leverage. You can spend $1 and reap the appreciation of $4 (or more depending on the downpayment), while the tenants pay all the expenses and finish buying the property for you.

Belle, I've had tenants from hell, but only when they came with the property. If you use your nose, common sense, and credit/eviction reports, you can be sure of good tenants.

Posted on: 2015/7/30 23:35
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Re: Sell or rent JSQ house?
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Thank you all for your responses..I welcome different opinions and want to consider all options at this point.

Nafco-thanks for the extra vote of confidence about being a landlord. I guess we have to weigh our fears of getting tenants from hell v the fear of regret (if we sold). It would also be comforting to know that if we did want to come back we still had that option.


Posted on: 2015/7/30 22:57
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Re: Sell or rent JSQ house?
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I suspect Brewster is a fan of Rich Dad, Poor Dad. The big advantage of going the real estate route is that it's a great way of building assets and generating income at low to no cost - and at less risk than most other forms of investment.

Posted on: 2015/7/30 20:31
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Re: Sell or rent JSQ house?
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If you're brave enough, sell the house and put the money in Apple stock and oil stocks. Who's to say Real estate is better than the stock market, or vice versa???

Posted on: 2015/7/30 19:22
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Re: Sell or rent JSQ house?
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Do some research - Get some house prices from 5-10 years back and see if any of those have been sold and if a profit was made ... then compare them to what new apartments and homes are being sold now for ... you might discover that renting and the small interest given by banks works out to be the same without any risk!

Posted on: 2015/7/30 19:14
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Re: Sell or rent JSQ house?
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brewster wrote:
Quote:

dtjcview wrote:
So a GRM of 12 translates to $2500/month on a $365k property. Think that's a reasonable benchmark for the OP to base a decision.


Just remember I'm talking about a "new" purchase. You're quoting a 7 year old bubble price that may be irrelevant at this point. My 2004 purchase for $385k appraised for $275k in 2012. jcmee said it in post #2, they should get an appraisal to see what actual equity they have. Hopefully a private appraiser will be more competent than the criminally bad bank appraisers I've had.


Good point. Zillow and Trulia can also provide references for current value - though I've known them to be wildly off at times.

Posted on: 2015/7/30 17:16
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Re: Sell or rent JSQ house?
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Quote:

dtjcview wrote:
So a GRM of 12 translates to $2500/month on a $365k property. Think that's a reasonable benchmark for the OP to base a decision.


Just remember I'm talking about a "new" purchase. You're quoting a 7 year old bubble price that may be irrelevant at this point. My 2004 purchase for $385k appraised for $275k in 2012. jcmee said it in post #2, they should get an appraisal to see what actual equity they have. Hopefully a private appraiser will be more competent than the criminally bad bank appraisers I've had.

Posted on: 2015/7/30 13:52
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Re: Sell or rent JSQ house?
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So a GRM of 12 translates to $2500/month on a $365k property. Think that's a reasonable benchmark for the OP to base a decision.

Posted on: 2015/7/30 12:41
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Re: Sell or rent JSQ house?
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dtjcview wrote:
Doesn't that point to a better answer to the OPs original question? If their property is still worth $365k, a GRM of 7 would require $4,345/month rent. A GRM of 10 would require $3,042/month. What's the highest GRM (and lowest rent) they should accept before investing elsewhere?


In my experience, the more gentrified an area, the higher the GRM. I won't lie, I got a great deal. But a non-Downtown property should be under a 12.

My ideal investment is to balance cashflow with speculation. That "invest elsewhere" is tricky. If all I was concerned with was cashflow, I'd join the people who've been buying houses in Texas and other parts of flyover country at GRMs of 4 or better. Yes that's right, buying a house for $24k and renting it for $500/mo. Crazy, huh? But that house won't be doing any appreciating.

Posted on: 2015/7/30 12:16
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Re: Sell or rent JSQ house?
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brewster wrote:
Quote:

dtjcview wrote:

http://www.realtor.com/mortgage/tools/rent-or-buy-calculator/

Plug in 07306 and 07302 to this. You'll find a bigger negative cashflow in JSQ than downtown - 30-year vs 10-year breakeven. If these numbers are right, you're simply wrong.


As presented they're both hideous deals with awful GRM's. They state a $334,219 JS property should rent for $1,281. No investor would ever buy a JS property with a GRM of 21.75. I don't believe their data. My last purchase, in 07307 in 2012, was a 6.82 GRM.



Doesn't that point to a better answer to the OPs original question? If their property is still worth $365k, a GRM of 7 would require $4,345/month rent. A GRM of 10 would require $3,042/month. What's the highest GRM (and lowest rent) they should accept before investing elsewhere?

Posted on: 2015/7/30 4:39
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Re: Sell or rent JSQ house?
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dtjcview wrote:

http://www.realtor.com/mortgage/tools/rent-or-buy-calculator/

Plug in 07306 and 07302 to this. You'll find a bigger negative cashflow in JSQ than downtown - 30-year vs 10-year breakeven. If these numbers are right, you're simply wrong.


As presented they're both hideous deals with awful GRM's. They state a $334,219 JS property should rent for $1,281. No investor would ever buy a JS property with a GRM of 21.75. I don't believe their data. My last purchase, in 07307 in 2012, was a 6.82 GRM.


Posted on: 2015/7/29 23:45
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Re: Sell or rent JSQ house?
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brewster wrote:
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dtjcview wrote:
No dispute in what you said - except for the fact that rents tend to rise in line with property value. Plus leverage will depend on how much current equity you have in the property. By leaving equity in JSQ there's a risk it doesn't appreciate faster than, say, using it as a downpayment on an investment property elsewhere.


The difference in our outlook is that I prioritize "investment" and you "speculation". I doubt any Downtown rental property today does not have negative cashflow, by definition that's a speculators market. There's always a chance there's a better investment somewhere, but you may not know if it was till the game is over.

In general, better returns entail more risk. Those guys I described upthread who invested in the 80's took a risk and lost. at least in that time frame. 97 was the bottom of the market.


http://www.realtor.com/mortgage/tools/rent-or-buy-calculator/

Plug in 07306 and 07302 to this. You'll find a bigger negative cashflow in JSQ than downtown - 30-year vs 10-year breakeven. If these numbers are right, you're simply wrong.



Posted on: 2015/7/29 23:17
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Re: Sell or rent JSQ house?
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dtjcview wrote:
No dispute in what you said - except for the fact that rents tend to rise in line with property value. Plus leverage will depend on how much current equity you have in the property. By leaving equity in JSQ there's a risk it doesn't appreciate faster than, say, using it as a downpayment on an investment property elsewhere.


The difference in our outlook is that I prioritize "investment" and you "speculation". I doubt any Downtown rental property today does not have negative cashflow, by definition that's a speculators market. There's always a chance there's a better investment somewhere, but you may not know if it was till the game is over.

In general, better returns entail more risk. Those guys I described upthread who invested in the 80's took a risk and lost. at least in that time frame. 97 was the bottom of the market.

Posted on: 2015/7/29 22:12
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Re: Sell or rent JSQ house?
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brewster wrote:
Quote:

dtjcview wrote:
The counter-argument to most of the posts - a studio or 1 bedroom downtown is likely to appreciate in value faster than a JSQ townhouse. The demographics of people moving to JC doesn't favor townhouses - young professionals and empty nesters. Plus over time "hot" areas continue to stay hot.

By all means rent it out for a short period - but consider re-investing in a property more likely to appreciate. And if the area you are moving to is hotter than JSQ - you might consider selling and investing your capital there.


Sorry, but if you heard someone describe the above as they're stock market strategy, you'd assume they would soon be broke. And rental has different numbers than owner occupied.


My stock speech is this:

The main difference between rental RE and any other form of investing for us mere mortals who aren't hedge funders is that this is the only market we can take serious advantage of borrowing leverage. If you buy a rental with 25% down on a 15 year note that pays all it's expenses and mortgage the whole time, and nothing more, at the end of the mortgage you've made 9.4% on your 25% down. That's considered great in most investments over that long. Had you bought a stock that didn't go up, at the end of that time you'd have lost a significant chunk to inflation. Now consider that rents usually go up over 15 years, as do values. Even if you have no cashflow at the start of the mortgage you likely will by the end.


No dispute in what you said - except for the fact that rents tend to rise in line with property value. Plus leverage will depend on how much current equity you have in the property. By leaving equity in JSQ there's a risk it doesn't appreciate faster than, say, using it as a downpayment on an investment property elsewhere.

Posted on: 2015/7/29 12:56
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Re: Sell or rent JSQ house?
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I would hold on if at all possible. I also bought in 2007 and i agree its been a complete stand still in terms of progress but now that J2 is underway, Ive seen a lot of projects come down the pipe line for JSq and am confident the area will improve and the value will go up in a few years.

It is a little bit of a pain for me to landlord from BK but its not impossible, and Im glad Im holding on.

Posted on: 2015/7/29 12:36
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Re: Sell or rent JSQ house?
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dtjcview wrote:
The counter-argument to most of the posts - a studio or 1 bedroom downtown is likely to appreciate in value faster than a JSQ townhouse. The demographics of people moving to JC doesn't favor townhouses - young professionals and empty nesters. Plus over time "hot" areas continue to stay hot.

By all means rent it out for a short period - but consider re-investing in a property more likely to appreciate. And if the area you are moving to is hotter than JSQ - you might consider selling and investing your capital there.


Sorry, but if you heard someone describe the above as they're stock market strategy, you'd assume they would soon be broke. And rental has different numbers than owner occupied.


My stock speech is this:

The main difference between rental RE and any other form of investing for us mere mortals who aren't hedge funders is that this is the only market we can take serious advantage of borrowing leverage. If you buy a rental with 25% down on a 15 year note that pays all it's expenses and mortgage the whole time, and nothing more, at the end of the mortgage you've made 9.4% on your 25% down. That's considered great in most investments over that long. Had you bought a stock that didn't go up, at the end of that time you'd have lost a significant chunk to inflation. Now consider that rents usually go up over 15 years, as do values. Even if you have no cashflow at the start of the mortgage you likely will by the end.

Posted on: 2015/7/29 12:04
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Re: Sell or rent JSQ house?
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The counter-argument to most of the posts - a studio or 1 bedroom downtown is likely to appreciate in value faster than a JSQ townhouse. The demographics of people moving to JC doesn't favor townhouses - young professionals and empty nesters. Plus over time "hot" areas continue to stay hot.

By all means rent it out for a short period - but consider re-investing in a property more likely to appreciate. And if the area you are moving to is hotter than JSQ - you might consider selling and investing your capital there.

Posted on: 2015/7/29 8:34
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Re: Sell or rent JSQ house?
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Depending on where you are moving, if rents are cheaper than what you would get in rental revenue seems like it makes sense to hold ?

You can always hire a property manager or give a handy renter a discount for managing repairs, etc.

I would imagine properties in this area have much more upside potential.

Posted on: 2015/7/29 8:05
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Re: Sell or rent JSQ house?
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Very true indeed... but you can pretty much say the same thing for most of the metro NYC neighborhoods. Even sh1t holes that remain till today such as Brownsville & East New York have easily doubled if not tripled during that same time period. So OP, hold if you can. HOLD!

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I was shown around JC for the 1st time in 97 by a guy who was trying to unload a small portfolio of properties he and a group of friends had invested in during the bubble of the late 80's. One was a condoed 6 unit on 8th st for $190k. Not per unit, for the whole thing. I think they should have held on, don't you?

Posted on: 2015/7/28 14:43
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Re: Sell or rent JSQ house?
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Thank you Brewster-this is our biggest fear! We know people who've sold in Brooklyn and later kicked themselves! It's just taking forever for JSQ to change and seems like it's never going to happen, very frustrating.

It would be a challenge for us to purchase a new home without selling current one, but our plan is to rent first in a town to see if we like it before jumping into another mortgage.

Posted on: 2015/7/28 13:38
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Re: Sell or rent JSQ house?
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Thanks for response...we met with a broker to discuss comps but have not gotten an appraisal yet. I guess the main downside of keeping is being a landlord. Just apprehensive about that with new baby and all...

Posted on: 2015/7/28 13:35
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Re: Sell or rent JSQ house?
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I would hold and rent if you have the means to get a new place. But I'm a buy and hold guy who believes rental RE is one of the few ways for financial "civilians" to accumulate wealth using the power of banking leverage.

I was shown around JC for the 1st time in 97 by a guy who was trying to unload a small portfolio of properties he and a group of friends had invested in during the bubble of the late 80's. One was a condoed 6 unit on 8th st for $190k. Not per unit, for the whole thing. I think they should have held on, don't you?

Posted on: 2015/7/28 13:33
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Re: Sell or rent JSQ house?
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Get an appraisal if you haven't already. If you can rent it out for >= mortgage costs, why not keep it.

Posted on: 2015/7/28 13:30
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Sell or rent JSQ house?
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Hi all,

Joined this forum about 7 years ago when we bought our house and have always found it helpful and informative (and entertaining at times!). Wanted opinions on whether we should sell or rent our current home. Here's the deal:

We bought in 2008 right before the crash in the JSQ area so as a result our house is one of the priciest on the block (365k). It's a 3 bed 2 full bath rowhouse with a beautiful interior (we put a lot of love into it), new kitchen, great fenced in back yard including large deck and less than 10 minute walk to the PATH (which used to be more reliable but that's another thread!). We just had a baby and want to move within the year. We of course were told JSQ was up and coming 7 years ago..it SEEMS like the area could finally see a change but honestly we're sick of waiting..we need more amenities at this point. We are torn about whether to sell or rent and hold onto it for a bit to see if value would increase. Would people who are priced out of downtown consider this area? I am familiar with the comps and know there are a lot of variables involved but just trying to get a sense of what others would think.

Thank you!

Posted on: 2015/7/28 13:26
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