Home Buying in Jersey City>Question Details

HL, Home Buyer in Brooklyn, NY

Where is a better place to invest for a 1 bedroom condo? Dumbo in BK or Exchange place in JC?

Asked by HL, Brooklyn, NY Thu May 3, 2012

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Thank you Linden and Jamie,
these are all very good advices.
0 votes Thank Flag Link Fri May 4, 2012
77 hudson is far from the best building in downtown jc...
and it doesnt even rank top 3 in terms of nyc views..

1. crystal pointe has best manhattan views..period.
2. trump towers has better than 77 hudson nyc views..
3. a building has better than 77 hudson nyc views
4. shore club has better than 77 hudson nyc views..

the only thing 77 hudson can rank top 3 for..
is amenities...
and maybe location..

that honor belongs to crystal pointe..
http://www.gardenstatehomesearch.com/listing/mlsid/424/prope…

I would advise against a client buying a 1 bedroom at 77 hudson for 696k...
'
The other exchange place hi rise which is still newer construction is
Montgomery Greene or 105 Greene St..

its closer to the exchange place path..
and you can get a 2 bedroom 2 bath
for 599k
http://www.gardenstatehomesearch.com/listing/mlsid/424/prope…

Which do you feel will have a better demand or return on investment..?

a 1 bedroom.. or 2 bedroom 2 bath..
try telling a potential, renter, investor or a savvy buyer..
"but my 1 bedroom has the best amenitities"

would that be enough to convince you to rent a 1 bedroom over a 2 bedroom 2 bath?
in a doorman building..still newer ..thats even closer to the exchange path?

It has a doorman-fitness center and rooftop deck..
and is like 2 blocks from exchange place path

if you insist on full amenities and willing to spend up to 600's
then buy crystal pointe..with unobstructed views...

if you willing to go 5 minutes walk from exchange and need the full bells and whistles..
I woulkd advise trump towers with same amenities-minus deeded parking

1 bedroom

starting at 399k

or if you can do without amenities..
but still want newer with doorman-gym-outdoor space
I would go with A building at 419k

are you really willing to pay 100k-200k more..
to get amenities?

by the way 77 hudson sales have consistently
dragged behind
Crystal pointe
trump towers

there are many options for luxury hi rise without dipping into the 500's.

if you gonna spend in the 500's and up for a 1 bedroom..
buy crystal pointe..

in fact if you want to buy in exchange only and willing to spend 600's

buy a 2 bedroom 2 bath at montgomery greene...with statue of liberty and southern exposure views
Higher rental value and reesale demand because its a 2 bedroom 2 bath.

and its closer to the exchange place path..
take a look...

hope that helps...
Linden Moe
Americas Elite real Estate
office 201-432-1600
Direct 201-839-4927
0 votes Thank Flag Link Fri May 4, 2012
those are two very different types of buildings and lifestyles your are a rare breed of buyer, usually people looking at full service buildings aren't willing to consider boutique buildings. City View is nice project it was well done and they are selling pretty well. I wouldn't say the sales in DUMBO are sluggish its partially seasonal the beginning of the year is always slightly slow. But i have noticed DUMBO being really active over the last 2 months.

As fo the WTC site completion, that will definitely affect Paulus Hook/Exchange Place and it will affect DUMBO as well so I think the growth will be experienced on both sides of lower manhattan.

I'm glad you are thinking ahead as to the time you will owner occupy and rent then rent it out make sure you pay attention to the Real Estate Capital Gains Principal Residence Exclusion as you plan.

My opinion on purchasing is as follows:
1. you always pick the lowest priced unit (that fits your life style, 2 kids in a studio apt doesn't make sense) in the best building and in the best location you can afford.
2. put as much money down as makes financial sense, but put more down than you think you should.
3. prepare to own it for 10 years, if things change positively sooner...congratulations you happened to time your purchase well.

good luck with your purchase you'll be fine either way.

take care.

jamie


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The Daniels Team
Licensed Real Estate Sales Team NY & NJ
Halstead Property
831 Broadway New York NY | 451 West Broadway New York NY | 79 Hudson Street Hoboken NJ
T:201.478.6722 | F:646.201.9717
http://www.TheDanielsTeamSells.com
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0 votes Thank Flag Link Thu May 3, 2012
Hi Jamie,

THanks for the reply. In fact 77 Hudson is one of my consideration. I am comparing 77 Hudson vs 185 York in Dumbo Brooklyn.
The price for a 1 bedroom lowest right now for 77 Hudson is 510k ish and for 185York it is much lower at 400k.

The maint and tax for 185York is much lower and seems like a much better investment in general. I am planning to put 25-35% downpayment and is planning to live for 3-5 years myself, and then rent it out and hopefully to sell at a time with that I can gain some appreciation and in less than 10 years.

Return on investment is my main consideration, and the high fix cost for 77Hudson is not ideal. But the demand for 77 Hudson seems high and with the completion of the WTC, it seems to have greater potential for appreciation(tho im doubtful how much given current economy situation)

Financially, 185 York in Dumbo seems to be a much better deal but the sale among some of the condo in Dumbo area is rather sluggish. Understand this is largely due to the current market situation but the sale at 77 Hudson seem to be very competitive, as a couple of units I looked at a week ago are already sold.
0 votes Thank Flag Link Thu May 3, 2012
Hi HL,

I work in both markets and both areas would be a great investment, both have had a great deal of development that has taken place over the past 10 -15 years, DUMBO has had more high profile projects mostly because DUMBO started its revival before Exchange Place.

I want to alter your Jersey City Location definition a little bit Exchange place is joined at the hip with Paulus Hook which is Downtown Jersey City's premier neighborhood, I define that in terms of housing stock, housing value, entertainment/food and services.

In comparing Exchange Place/Paulus Hook to DUMBO its mostly about preference, if you are partial to NYC you will prefer DUMBO if that does not matter you may select Exchange Place/Paulus Hook. Both should see very nice appreciation/value growth over the next 4 - 7 yrs. DUMBO’s starting price point is significantly higher than Exchange Place/Paulus Hook. So your raw purchase price will be more in DUMBO and your rents will be much higher as well. Rental demand in both neighborhoods is very high. The one difference that you should be aware of is the taxes are significantly lower in DUMBO (actually all of NYC is lower than NJ). Here is an example of similar properties in the two neighborhoods:

ADDRESS: 77 Hudson Street Jersey City (Paulus Hook)
SIZE: 1BR - 930 sq/ft
PRICE: $696,000
PRICE PER SQ/FT: $748
COMMON CHARGES: $704/month
TAXES: $754/month (approximate)
EXPOSURE: East/SouthEast slightly obstructed lower manhattan views

ADDRESS: 37 Bridge Street Brooklyn (DUMBO)
SIZE: 1BR - 938 sq/ft
PRICE: $800,000
PRICE PER SQ/FT: $853
COMMON CHARGES: $599.61/month
TAXES: $162/month (approximate)
EXPOSURE: West unobstructed manhattan views

These two buildings are not in the same level within their respective neighborhoods, 77 Hudson is either the best or 2nd best condo building in Downtown Jersey City. 37 Bridge (Kirkman Lofts) is a unique re-use of a factory as new luxury condos.

To summarize, I would give DUMBO the edge because its a better “brand name” right now and the real estate taxes being much lower for investment purpose make a great deal of sense. Having a lower fixed cost can make your return better. I don’t think you can go wrong with either one though. Downtown Jersey City is an amazingly vibrant neighborhood that is competitive with DUMBO.
To the point of making a return on investment or having an apartment cash flow. That’s really not a characteristic of the prime locations in NYC metro. A part of my clients that purchase in Downtown JC/Hoboken/NYC and expect any return will pay cash or put down a considerable amount of cash to make it work. the other part of my clients do not expect any return and are actually expecting to lose money to reduce their personal or business income...

I hope that helped. (sorry it was so long)

*** Be sure to follow and 'like' The Daniels Team on Facebook:
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~~~~~~~~~~~~~~~~~~~
The Daniels Team
Licensed Real Estate Sales Team NY & NJ
Halstead Property
831 Broadway New York NY | 451 West Broadway New York NY | 79 Hudson Street Hoboken NJ
T:201.478.6722 | F:646.201.9717
http://www.TheDanielsTeamSells.com
http://www.TheDanielsReport.com - "Helping You Make Informed Real Estate Decisions"
0 votes Thank Flag Link Thu May 3, 2012
hey,

I cannot dispute on the taxes...
that and maintenance fees are 2 of the things I cant negotiate
even as a negotiation expert ;-)

Lets take waterfront out of the equation..
and lets say the Grove St Path area..

where you can get a 1 bedroom brownstone for lets say 299k
rent it for 1800-2000

the maintenance fees would be around 200
taxes around lets say 5-6k per year.

and still be in a high demand rental area

the investors in downtown jc..
buy for tax breaks
and equity positions
debt buydown etc..

not for monthly cashflow..
if you want monthly cashflow..
it wont most likely be here..

we would need to explore other parts of jersey city for that..
and the equity position..wouldnt be that strong..

most times you cant have both

Hey , if you want hit me up we can grab a coffee at starbucks and I can go over the numbers..

by the way.. here is some market data about the area that might interest you.. about the area

http://www.gardenstatehomesearch.com/mimarket/zip/07302/

and here where everyone got all upset over the truth.. about the downtown market a few months ago..

http://hudsoncountyrealestatechat.com/558/downtown-jersey-ci…

talk soon?

Linden Moe

Certified Real Estate Expert/Realtor/Consultant/
Team Leader of the "NJ Top Ten Real Estate Experts Team"
America's Elite Real Estate

Fax 201-221-7712
Direct Line 201-839-4927
Office 201-432-1600
0 votes Thank Flag Link Thu May 3, 2012
Hi Homebuyer and Linden,

This is exactly why im not sure. waterfront JC property are high in tax, high in Maintenence. So half of what you pay does not go into the equity of the property.

BK has much much lower tax(some places are 10 times lower) and maintence in general are lower. In addition, in Dumbo, there are several lines of subway leading to Mathattan, rather than PATH alone, which is less frequent and unreliable at times.
But i am also attracted to Exchange place because of the new WTC that is soon into completion.
0 votes Thank Flag Link Thu May 3, 2012
Hey HL,

Im originally from BK..and that market is on fire..

I sell in exchange and downtown jersey city now..
So Im admittedly a little biased..

Both areas have uber invetment potential..
However I give the edge to Downtown Jc and exchange place..

1 reason..commute to manhattan and the financial district
exchange place is ten minutes to the financial district by Path..

and with manhattan rapidly climbing back up in real estate values..
where do you think these young professionals will move?

Follow the money..
here are some units in Exchange and Downtown Jc......
you can buy a luxury waterfront unit for 399,000
and rent it for about $2500
or you can buy a brownstone closer to 299000
and rent it for about $2000

those are strong cash on cash return on investment..dont you think?
check these out..

http://www.gardenstatehomesearch.com/listings/areas/1801,180…
0 votes Thank Flag Link Thu May 3, 2012
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