New York City is among the most expensive real estate markets in the world. And New Jersey has the highest property taxes in the country. So, the contending question of the day is where it is better to buy your first property considering the two.
The straightforward answer to this, of course, is somewhat tricky. It depends on various factors, personal preferences, and expectations. Regarding their proximity to each other, both states are attractive locations for investors. The large variety of property types can make things easier for some and more complex for others. In all regards, the cost of housing is a determining factor in most cases. In continuation, let’s compare the two, NJ vs. NY, and withdraw a conclusion on where to buy your first property.
Recent real estate trends – The Garden State vs. The Empire State
Before anything else, it is essential to note that the real estate market in both NY and NJ has drastically changed due to the pandemic. As a potential buyer, you should keep yourself up to date with the current market trends to properly fulfill your purchasing needs. People moving from the Big Apple and the growing interest in suburban areas are some of the most notable recent changes. However, investing in the New York real estate market is still a hot topic among investors looking for premium profits. This applies equally to commercial property, as much as it does to residential. Luxury properties have taken the hardest hit so far, and it remains to see the long-term effect of the pandemic on the NYC real estate market.
Meanwhile, many suburban towns in New Jersey are undergoing a revival. With state programs supporting businesses and welcoming new residents, many people move to the Garden State. The recent trends suggest a buyer’s market in New York and a seller’s market in New Jersey. Taking these trends into account will certainly help you decide where it is better to buy your first property.
The most sought-after New York suburbs
New York City is one of the most densely populated metro areas in the world. Consequently, the real estate prices correspond to this fact, making the city one of the most expensive in the world. However, The City that Never Sleeps is not the only option to fulfill your dreams when buying your first property, be it for an investment purpose or otherwise.
Many suburbs around the state are becoming increasingly popular locations for people moving out of the concrete jungle. Covering the easternmost portion of Long Island, Suffolk County has reportedly seen a sharp increase in real estate demand even in the years before the pandemic. East Hampton and Southampton are definite favorites, noting a whopping 40% increase in property transactions in the past couple of years. The median is currently reported at $1.45 million, and homebuyers’ preferences are larger, detached properties with ample outdoor space.
The benefits of purchasing your first property in New Jersey
The Garden State is traditionally a top choice for investing in real estate. There are real estate mistakes that you should avoid at all costs, and one of them is choosing the wrong location. However, purchasing property in New Jersey is one of the wisest real estate investments that you could make. With its strategic location next to NYC, NJ is an exquisite location if you are looking for a market with high rental demand. Many commuters working in NYC live across the Hudson, keeping the rental demand in NJ constantly high.
When you contemplate where it is better to buy your first property, think from a perspective of a local and consider your particular wants and needs. If you are looking for a steady investment that will pay off in the long run, NJ is a great option and perhaps a more attainable one. Despite the changes in real estate trends and people swapping tiny apartments for more spacious abodes, NYC real estate prices have remained steady. Although NJ property costs are rising, it is still a more accessible option for those with limited budgets. In fact, sources claim that the Garden State is one of the most lucrative first-time real estate investment locations in the US. Besides the proximity to the Big Apple, NJ has plenty of outdoor attractions and beautiful beaches, making it an ideal spot for short-term vacation rentals.
Property taxes – NJ vs. NY
Property taxes always pose an inconvenience for owners. However, this is a tradeoff that is easy to slide off, considering the positive aspects of owning property in a particular location.
While researching where to buy your first property, it is worth noting that New Jersey has the highest property tax load in the US. From a perspective of a renter, this is not much of an issue. But as a property owner, you should factor this in and thoughtfully consider how it will affect your real estate investment in the long run. Property taxes often dictate the increase of rental costs. The average American homeowner pays approximately $2,280 in taxes on an annual level. For New Jerseyans, this is $7,840.
In our draw, NJ vs. NY, the Empire State has an advantage in this regard. It comes as 9th in rank regarding a load of property taxes, whereas NJ is at number 1 on a national level. Considering that it is possible to purchase real estate in a prime location below $300 000 and the high rental demand in NJ, the high property taxes somewhat even out. However, while deciding where it is better to purchase your first property, consider the rest of your objectives. A good real estate agent will prove to be an invaluable source of information to help you make a good decision.
Plan your move timely
Looking to buy property is not an easy feat. You will need to study the market carefully and arm yourself with some knowledge to make a good decision. Hence, first thing first, partner up with a good realtor. Experts at evlmoving.com recommend you take advice from your agent on organizing a relocation as well. Finding the right property and the process of buying it entails many subtasks and organization. Nevertheless, make a point to plan thoughtfully in advance and secure a move free of stress, and with minimal effort on your side, with a professional mover. With this, you will take a big load off your shoulders in the process of purchasing your first property.
Where is it better to buy your first property? NJ vs. NY? – Final thoughts
In summary, the answer to whether it is better to buy your first property in NJ or NY will vary based on individual factors and circumstances. When it comes to budget, the costs for purchasing real estate in NY, and especially in New York City, the sky is the limit. On the other hand, New Jersey is a more budget-friendly opportunity and promises a good investment return. So, take your lead from the information mentioned above, and make good use of it. Taking note of it will undoubtedly help you decide between NJ vs. NY.
