Even in a difficult economic climate, real estate remains one of the most secure long-term investments that an individual or family can make. Sure, the past few years have proven the ups and downs involved with this kind of investing, but the track record also shows that investments in certain kinds of areas still tend to grow in value despite the temporary risks.
Bergen County offers the characteristics that make for a smart long-term real estate investment. First and foremost, suburban communities here provide a small-town feel with big city connections, located just minutes from New York City. Proximity to one of the world’s leading cities, with all its opportunities for culture and leading industries such as law, finance and media, make Bergen County a strong bet for investing. Of course, the towns of Bergen County offer their own charms, some with a village-like feel that includes quaint shops as well as popular chain stores, all surrounded by lush greenery with excellent outdoor recreation options. Throw in convenient transportation options, ethnic diversity and award-winning schools that put children on the track to a top college education, and it is obvious why people want to invest in Bergen County.
While any home purchase is an investment, investors as a group often look at their purchases differently than the typical homebuyer. Most buyers by and large think of their purchase as a way to create a home, a place where they and their family will feel comfortable, safe and happy for years to come. Real estate investors, on the other hand, think first and foremost of what they economically stand to gain from their purchase. This difference means that certain types of purchases are more commonly considered as pure real estate investments, an endeavor that requires a great deal of experience to be most successful. Amateurs should avoid many of the more complicated real estate investments.
One type of scenario for an investor is the purchase of a property in foreclosure, unfortunately a more common consequence of the difficult economic times, even in stable Bergen County. A foreclosure property is one that has been repossessed by the lender because the owner, likely due to job loss or an unexpected disaster, failed to pay the mortgage. While a foreclosure property can be obtained at a very good price because of the desperate situation, it is important to realize that financing is almost impossible to obtain for such a property. A foreclosure property must be purchased in cash, and the investor needs to be experienced enough to look for other potential problems, like an outstanding lien or court judgment on the property.
Fixer-uppers, or homes in need of a significant amount of rehabilitation, represent another type of investment purchase. Investors view fixer-uppers as a way to access a previously inaccessible neighborhood, where homes in need of repair can be found in wealthier neighborhoods and suddenly make it possible to live there. The key question, however, is whether the cost of repairs to bring the property up to its full market value will exceed what the investment can afford. Inexperienced buyers may wish to look for properties in need of less substantial repairs in more modest neighborhoods.
Increasingly, real estate investors in Bergen County also consider condominiums, which show a level of appreciation comparable to single-family homes in recent years. Condos represent a popular option for growing segments of the population, which includes older adults whose children have left home and first-time buyers in very expensive markets.
More than a place to live, Bergen County also offers a place to invest in real estate, particularly for investors with a degree of experience to ride out the inevitable ups and downs in the current market. But rest assured that a real estate investment still provides a high likelihood of return in as desirable a location as Bergen County.