South Jersey Vs North Jersey? First- Time Homebuyer

Starting Out
5yFollow

South Jersey Vs North Jersey? First- Time Homebuyer

Aubri ParedesPro Member
Investor · Rahway, NJ · Member since 2021 · 21 posts · 10 votes

Hi everyone! I am a first-time home-buyer and I'm a bit stuck on which direction would be better for me to take. My 1-year goal is to own two properties ( a duplex and a triplex or fourplex.) One in North Jersey (that I would occupy after a year) and one in South Jersey. I just have some questions about where it would be better for me to start.

I am 25 years old and currently live in North Jersey (Union County). My budget is ~350k. Should I first buy in North Jersey (Newark/East Orange/Irvington area) or South Jersey (millville,Berlin, Plainsboro, Sickleville, etc). Initially, my plan was to start in North Jersey because of its proximity to me and it would be more manageable for me. Appreciation in these areas seems to be greater than in the south Jersey areas where I am looking. (Millville, Berlin, Plainsboro, Sicklerville, etc) so I was thinking it would be better to start here as well. 

The main thing holding me back is that cash flow seems to be better in the south Jersey areas. But the people I have spoken with said to start with what's closer to me so I can get the hang of owning and managing property before I venture out. 

What do you guys suggest? Start in North Jersey (near me but more expensive) or South Jersey (farther away but cheaper, but might be harder to manage).

2Reply
31 views

Most Popular Reply

Antonio CuccinielloPro Member
Investor · Austin, TX · Member since 2016 · 531 posts · 310 votes
5y

@Aubri Paredes Having invested in Jersey and lived there, I recommend you invest for cash flow for your first property. Appreciation will happen over the long term. But I think betting on buying for appreciation in NJ is significantly more risky, than comparing it to buying for cash flow.

732-402-6988
1Reply
See this reply in the discussion

6 Replies

Jump to latestLatest
  • Ebenezer Carpio
    Member since 2019 · 10 posts · 3 votes
    5y

    @Aubri Paredes Hi Aubri!

    These are great questions and I can totally relate because I live in South Jersey and I’m in the process of buying my 2nd and 3rd properties, one of which is in Sicklerville.

    You mentioned that you are a first time home buyer; are you planning to live in this property you’re planning to buy? South Jersey has its advantages, prices and taxes are lower which often times means higher cash flows and it’s easier for new investors. With that budget you could purchase several properties.

    How are you planning to fund these deals?

    1Reply
  • Antonio CuccinielloPro Member
    Investor · Austin, TX · Member since 2016 · 531 posts · 310 votes
    5y

    @Aubri Paredes Having invested in Jersey and lived there, I recommend you invest for cash flow for your first property. Appreciation will happen over the long term. But I think betting on buying for appreciation in NJ is significantly more risky, than comparing it to buying for cash flow.

    732-402-6988
    1Reply
  • Stephen Kappre
    Real Estate Agent · South Jersey · Member since 2017 · 252 posts · 143 votes
    5y

    @Aubri Paredes 

    Unless you have large amount of cash to wait around for appreciation, I would lean towards the cash flow option. Yes in South Jersey you can find places to cash flow. Sometimes cash flow is high but appreciation is low, so you have to maybe find that sweet spot. Some not-so-great areas have high cash flow but very little appreciation. Other areas appreciate better and really hold their value but have much higher entry level prices and cash-flow little to none. As far as distance, consider how often you plan to go there. Do you plan to pick up the rent every month? Maybe just finding a good property manager or contractor in the area would make sense as you live further away. 

    0Reply
  • Bill Liu
    Investor · Hackensack, NJ · Member since 2017 · 15 posts · 3 votes
    5y

    Usually I would say Jersey city but with 350. all of Jersey city except maybe greenville would be out of reach.  You said you live in Union county, Elizabeth and Plainfield are good options for rentals. For Jersey you might want to identify towns that have low property taxes. That is one of the most important factors in Jersey that determines which town is a good rental town and which is not.

    0Reply
  • Ebenezer Carpio
    Member since 2019 · 10 posts · 3 votes
    5y

    @Aubri Paredes I am in South Jersey. Let’s connect. I PM’d you.

    1Reply
  • Account Closed
    Contractor · Mickleton, NJ · Member since 2020 · 114 posts · 112 votes
    5y

    im from south jersey...im an advocate for that area, that said...i keep all of my properties within reach in case of an issue because i self manage

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free