3 Reasons to Buy Property in New Jersey
Real estate investors often say that the three things which matter most when choosing a property are “location, location, and location.” This idiom is popular for good reason — selecting a property in a prime location can ensure that your investment grows accordingly. Investors who pick the right area to purchase a home, condo, or multi-unit property can see their investment doubling or even tripling over the years.
One of the hottest housing markets which has yet to be completely tapped out is New Jersey. Here are three reasons to add New Jersey real estate to your list of considerations.
It offers value in price and square footage
One of the hallmarks of a great state to invest in is this: great value in terms of property price when compared to square footage. Both in terms of median and average property prices, New Jersey ranks lower than the national averages by property, making it a steal when it comes to value.
In cities like Camden or Trenton, median prices for homes are in the low to mid $100,000s, while even more upscale areas like Union City and Jersey City have average prices per square foot at or under $620. Surprisingly, one of the safest bets in New Jersey when it comes to investments, Atlantic City, has a median home price around $250,000, with the price per square foot coming in at just under $175. These low numbers (in comparison to other areas in the country) give New Jersey a lot of potential value to investors.
It offers positive rental returns
Median home price and a low cost per square foot are important factors to consider when investing, but so is a return on investment. Even if you’re able to invest in low-priced homes, you won’t be able to reap the rewards of such an inexpensive property without positive rental revenue.
Thankfully, many of New Jersey’s cities offer excellent returns. While Atlantic City’s return is about 1.4 percent, cities like Camden and Trenton offer average returns of 4 percent and 6 percent respectively, well above the national average. If you’re new to the rental market, it’s advisable to obtain a tenant screening report free of charge before offering a lease. Various online services allow you to easily share your property and make the most of your role as a landlord, all while protecting your investment.
It is ripe for Airbnb
If you are looking for a less traditional approach to renting out your property, monetizing your investment through Airbnb may be a good choice. While it’s more of a gamble, Airbnb can offer higher returns than traditional rental agreements, particularly during months of peak travel. For example: in Elizabeth, New Jersey, average Airbnb rental income is about $2,400 with a 65 percent occupancy rate, compared to a traditional rental arrangement netting only $1,700 a month on average.
With so many different tenants rotating in and out of your home, it’s wise to consider ways to protect your investment with insurance. Nowhere is this as important than when you’re listing a condo. If you’re looking for condo or co-op insurance in New Jersey, you’ll easily find policies that give you peace of mind when it comes to the property itself, as well as your personal belongings and furniture.
When it comes to investing in real estate, New Jersey brings plenty to the table. With a high return on investment, and moderately priced median home listings, many of the state’s most popular cities prove to be a major boon for investors looking to make traditional or non-traditional rental income. Best exemplified by cities such as Alloway and Atlantic City, New Jersey is a safe state to invest in, due to its inexpensive and admirable property offerings.