Is a townhouse a good investment?
OK so here is the situation. I live in New Jersey, home to some of the most expensive taxes and real estate in the nation. Back in January, I looked at a awesome, large, end unit townhouse in the woods of Passaic County, about 35 miles from New York City. It's in good condition, its clean, its big (2300 sq. ft) but its dated (but I can update it little bits at a time). It has a garage, finished basement, 2 BR, 2.5 baths, fireplace, backs to woods, and on a quiet road in the complex. Over the past few months I have been looking a lot of detached houses. The closer I get to work in Bergen County, the smaller, crappier, and more expensive the houses get, and the more and more I keep coming back to that townhouse which is still on the market 6 months later. The townhouse is priced very well and is in a nice area. If I put some money into updating it, do you think NJ's market will be kind to me as years go by or do you think a townhouse wont make equity? Is it a bad investmt?
Renting & Real Estate - 4 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Right now there are lots of "steals" on the market. Any updating you do is going to return what you put into it, if you find the right buyer. You didn't mention how far the townhouse was from your work, that might be a drawback with gas prices, and time driving.
2 :
I think you will do well if the property is well located. Location, location, location are the top 3 things to consider with real estate. Schools are really important in Jersey, so is the school district a good one? Lastly, ask around and see if there are new large development projects on line. Townhouses probably won't appreciate as quickly as single family homes, but they should track the market fairly well, and the overall market seems to be getting close to bottoming out.
3 :
I am in the same position as you are right now. Only I'm in south jersey. Any money put into real estate is usually a good investment. I'm just concerned the houses on the market are still a little bit over priced. Because of the big housing bubble. I don't want to pay 200 k for house and then have it be worth less in a few years from now. I think your pretty safe thou, Everybody in this state wants to be up in passiac county. A townhouse can build just as much equity as a detached home can. Especially if you start upgrading the kitchen and bath. A lot of people like the idea of a town home. No yard maintenance and no snow to shovel. I think your making a safe and smart investment.
4 :
If the townhouse is still on the market 6 months later at the same price, it's probably priced too high. If it were priced 'very well', someone else would have purchased it in 6 months. The real estate market is slow, but not that slow.
