4 Reasons NJ Real Estate is Now Far More Attractive Than NYC’s

Whether it is homes or mortgage notes, New Jersey just keeps becoming more appealing than NYC.

We’ve been tracking this trend for a while, and COVID-19 is only helping to fast track it.

It’s true that NYC will always hold some magic and a special place in history and people’s hearts. Even if it does end up abandoned and looking like the Mayan ruins or pyramids of Egypt. Still, for a variety of reasons NJ is much more attractive to savvy investors right now. Here’s why…

1. No one wants to be in Manhattan right now

While we can be positive about the overall future, and especially real estate, what was a $4M luxury condo in Manhattan a couple of months ago is now probably less desirable than a 4 pack of plush toilet paper at the moment. Who wants to be quarantined in a small apartment in the middle of the city, with so much chaos? From this experience we’ve also learned it probably won’t be the last time it happens either.

2. Foreclosures

Foreclosures can be opportunities. A chance to help others and do something great for the community, creating jobs while generating profits.

However, buying on the down slope in a market dense with foreclosures can be dangerous too. Unless you are wholesaling or are prepared to hold for the long haul.

NY foreclosures doubled over the past five years, and were up almost 40% in Manhattan, even before rumors of the coronavirus started. If that scales too quickly, neighboring foreclosures can tank your assets. Knowing NYC, taxes are likely to go up and rents down at the same time too.

3. NJ Offers Better Value Assets

You must stay objective as an investor. You must invest by the numbers and data. Not just by glossy advertising and dream properties you’d love to live in.

Any way you measure it, New Jersey is still packing a lot more value for real estate and mortgage note investors. Of course, those spreads may get thinner on acquisitions as investors pile in with masses of capital they pulled out of NYC and the public stock market. Though this will be fantastic for those who already own these assets.

4. More Space

New Jersey obviously has a lot more space. NJ has more single family homes, with more square footage and houses with gardens. Compare that to NYC’s micro-lofts and studio apartments. There is no need to work or go to school in Manhattan any more. Especially, where there are more people vying for fewer and more expensive resources. Where would you rather be quarantined?

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Image by David Mark from Pixabay