Being near a college a positive thing? are you kidding, i go to that school and most of the time in the morning it takes me forever to get to it due to high flow of traffic. So, what will happen on days I have to work? Be stuck in traffic first thing when I leave the house? Was considering that place when it first was built but also concerned about scenery/landscape? Is there a big park created inside the gated environment? You can get single family homes that are bigger right now in the market for the price. For that price you can get a TRUE luxury condo/town home with sea views in newark / jersey city. Seriously people seriously.
If she has a positive cash flow on the 203K apartment after accounting for all expenses and interest on 203K, sure it is a reasonable investment because she can afford to wait for the market to recover.
I don't really understand the point you are making about Bear Sterns. They got into trouble by investing real estate(through mortgage backed securities). I can show you stocks that went from 10 to 170, you never invest everything in one company. I can also show you FDIC insured CDs yielding more than 5% today.
If we need people with 200K in cash to buy 1bed 1bath apartment in Edison, I think we are in deep trouble.
1Bed 1Bath is too small for me. So, I rent a bigger place near Edison and pay less rent than what it would cost me to carry a 203K 1Bed 1Bath apartment.
You are back with your theories again, now you have parent-in-law theory.
and you claim that you are smart because you work at Goldman???
As far as I know Goldman dodged the bullet by betting against real estate.
It is very hard for me to follow anything you write, so, I will not be able to understand this theory either.
I have a simple question, how much would one of these town homes rent for on a yearly basis and what is the property tax and the community fees
I eyewitness this Indian family with grandparents, couple, kids all sit at this model unit's luxury dinning room's 10 people dinning table, so excitedly sharing their feeling of success and American dream. How many $500,000 homes in North Edison have that luxury with 10 ft ceiling?
Don't get me wrong, North Edison still very good, and it is like 50 year old movie stars who used to have their shining era, and Centerplace at Edison is like a young emerging movie star. Other than its new design, material and style, it has the best Middlesex County College that I suggest you visit the Open House going to come http://www.middlesexcc.edu/ to see for yourself.
MCC is going to attract many top high school students to attend due to the fact American parents no longer going to be able to throw $50,000 a year for their kids going to college, and County Colleges would be a huge saving, $100,000 (for first two year of college education), besides, NJ State offer NJ Star I scholarship for high school kids with top 20% performance in their school.
You will see around Middlesex County College going to be a brand new popular area. Just looking at Mill Pointe at Edison on the other side of MCC http://millpointe.blogspot.com/ just sold another 6 units just for past week or two. You see market trend. This, in fact, also proven by what you see about the traffic. But, you may not know new highways is planned, and shuttle arranged, and Fwy 287 is widden all because of the booming of the Greater Edison/Piscataway area that is top 3 safest area in New Jersey.
As gas price continue going up, you may see many people like you working in the area, rather buy a nice Centerplace townhome than commute from far away. If many of your colleagues move to Centerplace and easy to commute, you may find yourself less competitive because you will waste 10 hours on the commute each week in addition to gas cost.
Not long ago, I was invited to an India gathering with dozens of Indian families love Indian songs near Centerplace. The leader told me that "Edison is my home, and I will never move out of Edison". Meeting so many families all at once, I felt Centerplace Development has a vision to provide what the market needs. After all, first time buyers often buy something under $500,000, but they also young with great potential, years later when they are ready, I can bet you that many million dollar houses will be built around Centerplace area, like what happened dozen years ago in North Edison.
Centerplace is townhouse community, but the "townhouse" is very different from the old style townhouses in North Edison or other place. Believe or not, with proper decoration, it has the taste of million dollar home.
Do you know Edison just approved to build a huge Safety Center near Centerplace area? When finished, you shall see this area be the safest place in Greater Edison area.
By the way, where do you think still available in North Edison? If you call your realtor, you may be surprised that almost all townhouses are SOLD in North Edison. According to NJ Goverment website, there were around 1,000 homes sold just in 2007. All over the Edison you see renovation of old houses. e.g. I just passed Brotherhood St today, and I saw one million dollar home renovated from $500k house, and another land's trees were just cut down and foundation laid.
So, to certain extend, there is absolutely NO luxury new townhouses like Centerplace in North Edison for just $500,000. If you find one, please feel free to post here, so that some buyers agree with you may buy.
You really confuse me. Nothing you say makes any sense to me. But you seem to be an experienced real estate investor and both of us are living in different planets as far as real estate is being considered as an investment.
All I can hope for you is that you are net cash flow positive on all your real estate investment. (assuming you have a term called cash flow in your dictionary). Otherwise, you have no idea what is coming your way
Cheng, one liner for all your theories. Rich people donâ€™t necessarily produce mentally rich kids!!! And all your theories are designed for people with easy money and have kids age 8 to 14. Ask a psychologist.
you have interesting theories like 'Homes priced in crude oil theory", "Chinese mother theory", "Serious birthday party theory", ...
I am not disputing your theories, they might be correct, but until, you publish these and win a noble prize in economics, or something significant like that, people are going to believe in conventional ways of valuing real estate, which is why we had home prices correct significantly last month, while crude prices hit new records.
So, for now, I like most people use something like this to calculate return on investment on real estate:
["rental income" + "tax credits"] - ["mortgage interest" - "property tax" - "annual maintenance and repairs"
- "home insurance" - "provision for idle months" - "lost opportunity cost on negative cash flow" - "provisions for disasters like floods, somebody tripping and falling in your drive way, major employer in your area going bankrupt, economy going into serious recession" ] - ["one time selling expenses like Realtor commissions"]
Using this formula, any real estate in new jersey is very expensive.
I am also a big believer in 'Bigger fool theory', where "I know it is a bad investment, but I am going to find a bigger fool who will buy it from me at even a higher price".
But, the way main stream media is bombarding them with depressing news about real estate, the pool of 'Bigger fools' is shrinking rapidly.
Now, you could argue that home is a place to live and not an investment, but as long as I don't run out of places to rent, I choose to treat it as an investment
That said, I hope you are right and real estate goes up forever, as I know other ways to profit from it, which don't include buying real estate.
The so called "All you want" Townhomes worth half a million does not even have a Microwave !!! Can you believe this. The community has a small pool and a basket ball court (still in construction stage for months), and NOT even a Tennis Court.
The community raised the monthly maintenence by 50% in after just 6 months after sale of Phase 1 homes. What a blatant rip-off. Internal roads are in bad shape, grass is poorly maintained. Not sure for what are they asking this big money for. These units will be an extremely bad investment in current market.
I think if they want to sell, they have to reduce prices by at least 25 %.
Because of NEW construction, Property taxes for Condos are as high as 6,500 $ and as high as $9,500 for Townhomes................... PREPOSTEROUS .. when you get brand new single family homes in its vicinity for 25% less and of with 50% more space. This is a TOTAL LOSS proposition.
Wake up Lennar !! Thanks to naive Asian Indians, who are still buying their properties at stupid prices just because its new !!
data is 2-3 months old. Until Feb5 they sold one home for 411K
My friend who just came to my husband Peter for auto service often told me that he regret not buying a house near the high school whereas his couson did, walk to JP Stevens High. Why? when I asked him, he said, when he bought his house while kids were new born, 2 year and 4 years old, he thought he could move later easily when kids going up, but he was wrong. kids have all there friends, and the older the kids, the harder to move.
Even worse, when kids were at elementary school, not too many "independent events" so providing rides are not a problem and even a fun. However, as kids grow, he said his high school kids got all sorts of event, like orchestra rehersal, food ball game, key club, science league, ...etc. If he had listen to his unclue like his couson bought a house can walk to high school, his life would have been much easier.
So, don't underestimate the "vision" of all these families with small kids who bought at Centerplace at Edison, they must have their smart parents or seniors to provide them tips. Think twice, even if you live right next to daycare, your 2 year kids can not walk to school by himself any way right? So, near day care or not is not really a big deal, I even know people working at Merck and Johnson and Johnson, they have their kids going to daycare at work.
You are correct that Centerplace does NOT walk to train station, but #813 does go to Metuchen train station. Carpool is also a good solution, but I believe as the community complete, there shall be a direct shuttle over if there is a need. Board of Condo often can do something their owners requeste.
I have a client who still drinving an old Toyota Corolla, and he droved to Train Station and parked there without worrying much, so for community close to train station, even if you need a 2nd car, you can get a used one. Like Tony own a computer warehouse at Raritan Center told me that he bought a Nissan Quest 93 with 140,000 miles in 2001 at $3,500, and now he got 275,000 miles, still driving very well.
If you need a reliable 2nd car or auto service, please feel free to give me a call at 917 669-8209 (cell). My husband Peter used to work at Toyota Avenel and Dayton Toyota, he would be glad to help you.
Overpriced? Well, price is a matter of opinion.. are they still selling now? If so, then they are not overpriced.
There is currently one townhome- 1 year old with 3 bedrms, full basement, 1 car garage with lots of upgrades including Granite counter tops, Stainless steel appliances etc,. with asking price of $450k.
If interested, Please contact me at my Cell# 732-277-9321 with any questions.
You can also check properties at my website at http://www.vishalmaher.shutterfly.com
Dear Home Shopper, Just tell me some FDIC insured banks in Greater Edison area with over 5%, and I am sure my friend Helen would be very happy to learn, as she said all her friends have over million dollars CD, but hard to find good rates these days.
People buying with cash have their own reason. e.g. Danny bought 5 condos all in CASH, same as Samson Helen and quite a few others I heard, but there are people who prefer to borrow.
But if you look at this 1br 1ba unit renting $1,400 http://www.realtor.com/search/listingdetail.aspx?zp=08817&am and the address, you know it is the same one I was talking about. Without photo, it is hard to imagine, but if you call the realtor to see it, Gee! it is like small size of Centerplace at Edison, so new so shine!
Firstly, its next door 1938 1br 1ba rented $1,400 since last year, so the rent of this 1935 is not unreasonable. Secondly, the Edison/Blueberry Village across street with smaller sq ft already renting $1,300, besides, they did not have built in washer/dryer. People working at Wall St does not seem to like that, but it is still rented out!
The good thing is that all units in Centerplace at Edison all have built in washer/dryer.
That is to say, people who did not get a chance to buy Centerplace at Edison http://centerplaceatedison.blogspot.com/ may have to line up to buy in the future like people who did not get a parking permit at Edison Train Station, lined up for 8 to 9 years in the waiting list...
But, at least, that same news http://www.mycentraljersey.com/apps/pbcs.dll/article?AID=/20 also saying that NJ Transit going to build 400 to 600 parking lots, so grab a parking permit this time...
I guess Edison township going to let go the Edison Exchange to build 789 townhouses only when buyers line up for 8 to 9 years of waiting to buy at Edison :-)
Yes, there might have been re sales like 1907 Raspberry Ct Edison NJ 08817 1br 1ba 1fl w/d condo listed at $199,900 and sold in ONE Day, so EHS sold out again. Then 1935 Raspberry Ct Edison NJ 08817 1br 1ba 3fl w/d listed at $203,000 and sold in ONE day again, so EHS sold out again ...
If anybody has an idea, please post.
If we can go back to the opinion that real estate is an investment after all, In my opinion NJ real estate, market is the worst market to invest in today. It didn't really have a real correction in home prices because the boom was not speculative but based on good job and salary growth we have seen during the period. The biggest source of jobs, financial services is going to shrink big time. That is going to have an affect on other consumer related industries and state tax revenues. That will keep property taxes high for a long time. To sustain these high real estate prices, we need growth in jobs and salaries. I also believe that the financial sector will come up with some new way of making money, but that will take some time and when it does, the job growth might happen in some other state or country
The Enclave http://theenclaveatedison.blogspot.com/ has been sold out for a long while ...
I guess that's why many savvy buyers come to buy at Centerplace at Edison before it is to be sold out as well ...
I think some of u need to be realistic about going to an ivy league college etc ....getting in ..the cost ,,,who u know etc.......A BA counts yes but its all about where u got the MA in the end ....
I am buying at center place and yes it is expensive but we have looked all over edison and anything that comes close in terms of looking like center place is over 650k ....
North Edison is great but over crowded and eventually the over flow will go into South Edison and I am seeing it happen the reason the schools in North are top its because of the Asian population ....I've seen smaller town homes little upgrades at Traditions in South Plainfield fetch ...450K recently ...
Most of the homes are almost gone my husband and I plan to live there for many years to come and its not about flipping and making money which is where most mindsets are .....
Many years ago when investors built Rivendell Village luxury townhouse rental near Rutgers and Edison Train Station, some people think it was crazy, near warehouse area, job cops ...etc. Well, now they changed their mind. Who are the people rented it? IT professionals working at Jersey Cit, NYC ...etc, and believe or not Rugers Univ students.
So, you think students are cheap? poor? maybe, but because it can walk to Rutgers Univ, they can save a car. To be more precisely, their parents can save a car, insurance, gas, worry ...etc. I know many Rutgers students renting there, and that's why I would NOT be surprised that, if owner of Centerplace who are moving up to million dollar house years later, if they want to rent it out, they will be very easy to rent to MCC students (or be more precisely, rent to their parents).
Who are best tenants in the world? college students! A friend of mine whose Rutgers student tenant later went to medical school stayed 6 years in his condo, the father always send in check around 20th of each month post dated. When his son finally finished and went to Stanford Univ for residency, he was so surprised when the condo was turned back to him. New appliance, new kitchen, ...etc, the tenant made everything new!!! Free of charge. To be precisely, the parents made everything new!.
So, you know townhouses like Centerplace walk to MCC is not only a great home, but a great investment if it needed be in the years to come when move up to big home.
Also, NJ Governor signed a new law http://www.state.nj.us/governor/news/news/approved/20070913a.html that makes first two year college course credits at MCC to be all transferrable to, say, Rutgers Univ and others, that means the quality and acdemic level of MCC will be brought up to that same level.
As a note to unfair admission practice of Princeton Univ. If you did NOT go to Princeton Univ, your kids will be very unlikely got admitted. They published the admission rate is about 7% to 8%, but alumni's children admission rate is above 40%. If your children is the first generation college student, congratulations!, they will get more chance. But that implies you, your wife, your parents, in laws ...etc all had NO college education.
This also post a long term impact, if you happen to be Princeton Univ alumni, and your children got that over 40% bias admission rate and got into it. Do not be happy to early. Later you may find their parent-in-laws are hard to communicate with you as your children may marry with some classmates whose ancestors never went to college.
So, if you think buying a home near Princeton University will be better than Centerplace at Edison, think twice. You not only pay huge for small sq ft, but huge property tax. and you got an illusion that your children may go to Princeton Univ which is very impractical.
You do not need another 50 years, may be just another few years. Friend of my colleague at Goldman Sachs bought at Centerplace. He and his wife making over $250,000 a year as IT professional. I would not be surprised that they can afford a million dollar house in much less than 50 years.
Princeton University is good but very costly, $50,000 a year will cost any American family $200,000, besides, it is very hard to get into Princeton Univ. e.g. Top school districts like Piscataway High School only got 3 students got into Princeton Univ, but 4 into U Penn, 8 into NYU, ...etc. One thing you may not know is that graduated from Princeton Univ may not make more money than graduated from Rutgers Univesity School of Pharmacy. I know someone's son (hey! living in North Edison, graduated from your favoriate JP Stevens High, and got admitted to John Hopkins and Columbia Univ, but picked Rutgers University School of Pharmacy... 6 years later, now he is making $200,000 a year.)
So, most of buyers who bought at Centerplace would more appreciated something like "Middlesex County College" cost $50,000 less than Princeton Univ each year.
I wish I can teach at Middlesex County College, but, frankly speaking, I am overqualified. I went to UC Berkeley both under and graduate major in EECS/CS. But, I would have no problem to give advise to any students to become top students.
I am not working for Centerplace at Edison either for the same token. Only companies like Goldman Sachs can afford my expertise. Did you realize why most banks got hit by subprime? but NOT Goldman?
I think they do not have smart people like Goldman Sachs.
Do you know where was Dept of Treasurey working before? Do you know where was NJ Governor working before? Do you know the new CEO of Wachovia, 4th largest bank, working before? Goldman Sachs.
So, if succeesful development like Centerplace at Edison can not only survive and sold out in current market, I believe there got to me some smart and intelligient people working for the company.
In these days, there are still hundreds of thousands of buyers, but they will choose good Location with safety, excellient school, publich transportation, affordability, yet luxury ...etc. Centerplace of Edison got all of them. Let me ended with David's email today, who is top realtor in ReMax to show you what I meant by Edison is booming ... and if you decide to buy condo/townhouse at North Edison, other than Centerplace, please feel free to give David a call; he is professional and can tell you the story of how Aspen Manor at Edison sold out recently thru his buyers.
Subject RE: From David Wylde
From "David L. Wylde"
Date Friday, July 11, 2008 11:41 am
You will have to be more specific there are over 400 condo/townhomes that have sold in the past months in Edison. Again please call if you have any other questions @ 908-752-2305
Community College is going to attract many top high school students?!? Seriously.
Another 2 year would be at Middlesex County College for free two year college tuition thru NJ Stars I, and who knows, may be another two year at Rutgers Univ for NJ Stars II free tuition. and after that go to famous Princeton Univ for graduate school?
So, once these townhouses sold to these family with vision, they will no longer available for sale on market for many years to come.
When you go open houses for thousands and talk to thouands of realtors, you will be as good as I am.
In general, I just tried to share with you why Centerplace at Edison is so popular, and there are reasons for them. It is "market", people love all the good things and environment, so people buy them. Soon or later, they are going to be sold out, and that's it.
but I think I am just honest and sharing all the facts that Center Place at Edison is best for. I mean best for a certain group of buyer families who can take advantage of the location and emerged top high school in New Jersey that may be NJ Monthly will catch up their report 3 years later as their data seems to be 3 year late.
Young families without kid or with little kids probably either not yet save enough downpayment to buy luxury townhouse like this, believe or not, one of the most luxury townhouse in Edison! Or, may be just think high school is too far away, which is very true.
But, if you have middle and high school kids that you running around each day to provide rides to their school activities, you will definitely find places like Centerplace at Edison is fantastic! that's why you see nice new homes like "Library Estates" http://www.trulia.com/voices/Home_Buying/_BUENA_VISTA_Av_Pis very popular!
If you have some time, check the JFK Library where it right next to, you see lots of students there study and working on project together after school. So, if you live next by, virtually, you never need to drive your kids around to do projects... especially, after school, they can all walk over from Piscataway High School that has 9 student won full scores in SAT this year...
My couson lives right next to JP Stevens High, and they have NO intention to sell or move, in whatever reason, for the same reason that right next to top high schools is great value. When he got laid off, find a job somewhere else, even find a job in FL, but commute back each week or two, and in the mean time, find another job back to Greater New York City area...
If a person share all the facts honestly would appear like a Psychologist with hundreds of thoudands of followers, I think that's simply the power of "honesty".
You are now going against the tide and buying(lets hope at the bottom), you will do fine.
In my case I am a first time buyer, can easily afford down payment, but really hard earned money, not gains from previous real estate boom.
So, I will probably never buy unless it is comfortably cheaper to buy than rent.
I also expect congress to give a huge tax credit to first time home buyers within the next couple of years.
That probably will tip the scale in favor of buying than renting for me
Congratulations on your purchase.
Now that you made the decision, try to enjoy your new home and forget about the market conditions for a couple of years. As long as you can afford the monthly payment and have enough savings to cover disasters, you have nothing to worry about.
If you don't mind me asking, can I know what is making you most nervous?
Are you a first time buyer or a move up buyer?
I am just trying to understand the psyche of the buyers, what is driving the decision to buy and what is holding people back.
I already know the psyche of those sitting on sidelines as I represent one of them.
Do forget, families thinking the same bought and live here, and their kids and family values are also become very valuable to your kids. e.g. living here, you know your kids will be invited to serious families for birthday party, and you kids will make friends with those kids looking to move up to get good education. You do not need to worry you kids will be in a drug area or crime area...