Just over the state border from New York, Newark is ailing in the worst housing crash since the Great Depression. Home sales rose temporarily as a result of the first time buyers' tax credit only to soften. The pain of the fall out from the financial crisis can be seen on just about every face with more bad news expected in the coming year as housing prices deflate a forecast 11.7% on average. Foreclosures are nagging at the market and are projected to increase.
Many people say it is a good idea to rent in an area before you buy. That way you get a good feel for what it is like. You may find it is not so bad where you are looking. Maybe it is worse than you think. By staying there for awhile you can figure it out and then choose to buy if the area fits you. True of newark or georgia.
1) Investing in Newark. Newark is a great rental and cash flow town IF you know where to buy. I wouldn't touch the South ward. In fact the only areas I would deal with are Forest Hills, much of North Newark, Ironbound, parts of Weequahic (Weekway to you fellow Newarkers) bordering Hillside and Ivy Hill (not just Vailsburg but IVY HILL in Vailsburg). Anywhere else and you may be asking for serious trouble.
2) I've seen so many tragic stories of people who brought investment properties and relied on family members to watch after them (or even pay rent on them) while they resided out of state. Only to see those same family members neglect the property to the point of destruction. Familiarity does indeed breed contempt when investing in real estate. Unless you can come up every week and check on the property, do not get into an arrangement like this. I've seen too many headaches experienced by property owners who rented to family members only to see the rent go unpaid, the house go into serious disrepair and the property eventually lost to foreclosure.
We are very happy here! There are bargains galore, even in the very, very nice sections of town. And other nice area as well. I think downtown is a great place for investing, as is the north ward. I have a condo I own in the north ward, and my husband owns the building his office is in. Can we sell them right now? Not easily, but they have renters and we can meet our bills, which is more than a lot of people with property can say. If you have other questions just call the office or look online.
In terms of purchasing an investment property in Newark, there are a number of foreclosures and REO multi-family properties available if you're looking for positive cash flow. I'm familiar with some of Atlanta's town and you could actually find some properties in Newark that are priced as low as in some subdivisions of Atlanta. The only difference is, the Newark properties will likely need some major repairs.
Marsha B. Washington
Realtor/Real Estate Consultant
SFR - Short Sales/Foreclosure Resource
Coldwell Banker Residential Brokerage
For the best most up to date and accurate information talk to the police station nearest the area you would consider buying in. They know the real story about what is going on. They deal with it every day after all.