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Neil, Home Buyer in Jersey City, NJ

Does it makes sense to buy apt in trump around 520k for and holding it for 5 years for purely residential purpose ?

Asked by Neil, Jersey City, NJ Wed Jun 12, 2013

Does it makes sense to buy apt in trump around 520k for and holding it for 5 years for purely residential purpose considering the fact that mortgage rates are increasing and at the same time there is no inventory on the waterfront ?

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Niel, did you buy a unit?

I live in the building and think its great. Many of the comments below are good and other not so helpful. For 520K it depends on the line the unit is in. The 02 08 Lines are the best in the building then the 03 07 and 06 above 33. 5 years, with no big condo projects on the horizon it could be a hot commodity to have. The big question is what is a 1 bedroom worth?

Someone mentioned Toll Brothers, the building they are building between Bay and Morgan on Marin was going to be a rental and condo tower, but when I talked to Toll Brothers a week ago they said all rental.

The best value is going to be a unit that has a view. Yes views are never guaranteed but in many cases the 1 bedrooms are not going to have their views affected by up coming building in the area.

Give us a follow up on what you did and if you have any question please let me know. Like I said I am in the building and know it very well
0 votes Thank Flag Link Thu Jul 11, 2013
This is my personal opinion, other than the lemon comment:

- Trump buildings usually have a premium attached to them, which can become a liability down the road,
- higher maintenance fees than usual. Maybe you get more, maybe not,
- Trump building is not particularly well located. It is next to the ugly transformer building, far from other residential buildings, and frankly from everywhere,
- transportation options are not good. Grove, Exchange, and Newport paths are all reasonably far,
- it is not a waterfront building,
- buildings can be built around it, obstructing the views from all directions,
- the fact that there is no inventory elsewhere in the J.C. waterfront, but Trump is available says a lot about the "value" of the Trump building.
- you will NOT recoup your costs in 5 years. You pay 8-10% transaction costs, and very high holding costs, so you will have to get close to 10% a year appreciation to beat rental costs. You are paying a 4% mortgagage, and 25% of your purcahse price is sitting like dead money.
0 votes Thank Flag Link Sat Jun 15, 2013
I think anything that has a Trump name attached to it is a lemon. Whether it is a tie, hair product, or a building.
0 votes Thank Flag Link Sat Jun 15, 2013
Hi Neil. In 5 years the new residential towers that Toll Brothers is building will be complete and likely sold out by then. So it could prove to be a good investment. All things considered, you should think about whether you will enjoy living there, the carrying costs, and pay attention to the exposure in the building, because if it is east facing for example, it is likely your view will be blocked.

The Athena building could also be a good purchase, and, if for some reason the value is not where you want it in 5 years, carrying costs should be lower due to lower maintenance fees and you may be able to rent it without a loss then.

But, none of us have a crystal ball right?

Hope that helps!
0 votes Thank Flag Link Thu Jun 13, 2013
Hi - I'm thinking you mean to live in it for 5 years and then potentially sell it. I think that your will get a good appreciation in the apartment over 5 years. The area is one of the nicer parts of Jersey City, transportation is great from that location, and i think you will have no problem selling in 5 years and making a good return on your investment.

If you need help finding the perfect Trump apartment, please give me a call.
0 votes Thank Flag Link Thu Jun 13, 2013
By residential purpose you mean hold it vacant in order to occupy it in 5 years?

Sincerely,

Amos Elroy
CDPE (Certified Distressed Property Expert)
SFR (Short-Sale Specialist Certified)
CHBA (Certified Home Buyer Adviser from NAEA)
CSBA (Certified Home Seller Adviser from NAEA)
NAEA Member (National Association of Expert Advisers)

Residential Real Estate Expert Adviser

Lic. Realtor Associate
EXIT On The Hudson Realty
(888) 462-6573 / (888) HOB-NJRE
FAX (888) 462-6573
Office 201-437-0411
http://www.HobNJRE.com
0 votes Thank Flag Link Wed Jun 12, 2013
I meant is for my personal living usage. I do not mean vacant.. i Would be living there for 5 years..
Flag Wed Jun 12, 2013
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