Last one year has been a year of uncertainties and clarity, despair and hope, idleness and focus. But as far as real estate is concerned,there is hope and more hope at some places. In fact in States like New Jersey, real estate has gotten more attractive than what was being expected, Opines Hirav Shah, Famed Real Estate Strategist and Real Estate Astrologer.
New Jersey is the fourth-smallest state by area in the US, but the 11th-most populous, with 8,882,190 residents as of 2019 and an area of 8,722.58 square miles, making it the most densely populated of the 50 U.S. states.
The future of real estate in New Jersey was thrown into uncertainty by the pandemic, both from its direct effects on how we live as well as speeding up pre-existing trends. To understand the future, we must focus on what real estate does for people.
Buildings are not constructed other than to serve people. People want shelter where they live. They need and want goods and services that are produced or delivered in buildings. They work somewhere—often inside a building—to buy those goods and services. And they get pleasure or satisfaction from certain activities that take place in buildings, ranging from churches to bowling alleys.
And at least some of them like to see, or at least know of, great monuments, temples and tombs.
So, a look at the future of real estate is simply a look at how people will live, work, shop, and enjoy life, Opines Hirav Shah, The Most Sought-After Real Estate Business Strategist Cum Astrologer.
1.High Demand of New Jersey Real Estate
Limited inventory, lots of buyers and historic interest rates will provide the ingredients necessary to produce a super high-demand market in New Jersey. And sellers are benefiting from home appreciation rates that peaked as high as 20% in some areas of New Jersey.
2. Rise In Sales Volume
As more businesses embrace virtual commerce and workplaces, commercial spaces could be converted to residential uses to overcome inventory shortages. And despite demand for large-lot homes, urban cities still stand to benefit most.
For example, Hoboken and Jersey City will see the greatest volume of sales activity in the state by 2021 year end, predicts Hirav Shah.
3.New Jersey Will Be The Most Attractive Rental Property Investment Option
a.There are many reasons international investors will find rental properties in New Jersey attractive. For one, in terms of location, New Jersey has easily been one of the best choices for investing in lucrative rental properties. This is because the strategic location of New Jersey next to New York City to its northeast and Philadelphia to its southwest makes it an ideal place to purchase a rental property. This is especially true if you are looking for high rental demand.
b.The relatively low property prices in New Jersey are also what makes the state a location worth considering, particularly for investors with a tight budget. You can find income-generating homes for sale for an average of about $350,000 in many locations and neighborhoods in New Jersey.
c.One of the most unique aspects of rental real estate investing in New Jersey is property appreciation wherein you can often use a modest amount of your own money and borrow the rest, often four to 20 times more, usually from a lender such as a bank. This is known as leverage.
d.The potential monthly income is another reason to invest in international rental property. Keep in mind that location, vacancy rates and amenities all play key roles in the amount of rent you can charge, and hence, how much income you will be able to generate. In most cases, if you are up for the challenge, the right rental property in New Jersey can start generating positive cash flow for you.
Even in an economic recession, when tenants might receive a rent cut in order to maintain occupancies at higher levels, overall, the income levels tend to remain consistent and relatively resilient over the full cycle.
e.There is no doubt that investing in rental properties comes with many tax benefits, including depreciation — probably one of the best advantages of all. As a business owner, you may be excited to see so many benefits for you,here.
Real Estate Trends In New Jersey
1.More People Are Moving To New Jersey: For now, the trends signal a seller’s market in New Jersey. As business owners, it is of paramount importance to stay in the know on real estate trends. Beyond this, it is of paramount importance that we continue to pay attention to these trends to understand how Covid-19 will affect the New Jersey real estate markets in the medium and long term.
As business owners, you need to position yourself in a positive manner for short- and long-term success, and taking trends into account can certainly help. Long-term impact is unknown, but more people are moving to New Jersey.
2. Demand for the suburbs is increasing: Since the beginning of the pandemic, there has been a 44% increase in home sales for New Jersey. Overall, demand is up 25% when compared with pre-pandemic numbers.
Covid-19 reshaped the way that we live. Restrictions and social distancing measures are set to last for the indefinite future, and this causes many people to rethink city living in favor of a roomier, sprawling suburban lifestyle.
Your clients may also be moving to the suburbs — something to take into account. This may lead to needing to relocate some office space to the suburbs. This is also where suburban commercial real estate comes into play.
Best Places To Invest In Real Estate In New Jersey
Rather than picking a town because it’s 10 miles from their office, people are picking a town because it affords them the quality of life they’re wishing for their family. If you could live anywhere in America and still have your same job, where would you choose to live? People get that choice now. And that’s a very unique situation that we haven’t seen before.
Properties with room for offices and home-schooling have become more attractive. People who are wondering when they’ll be able to go on another vacation are looking for houses that can offer a “staycation” destination next to lakes. Large yards are a plus, but also walkable downtowns like those in Madison and Wyckoff.
Homes with that type of feeling are moving quicker. That’s why you start to see anomalies like towns such as Clinton and Sparta moving at a faster pace right now than towns such as Hoboken and Jersey City.
Weehawken, Bayonne, Asbury Park, Moonachie are other hottest places to invest in New Jersey, predicts Hirav Shah.
Now, real estate investors can find properties to fit any investment strategy in New Jersey.
Whatever your real estate investment strategy, whether it’s commercial, vacation rentals, or multi-family properties, the New Jersey market will embrace you and your real estate needs.
All you need to do is, consult a bonafide Real Estate Adviser and Strategist.
Introducing Hirav Shah as part of your real estate strategy team, can surely help you reap the benefits of certainty in your business strategy.