Is buying a new duplex in Cliffside park good idea?

Question

I am looking to buy a new duplex in Cliffside Park, NJ. There are a lot of new constructions in the area but the price for those duplex is skyrocket. Is it a good time to buy in the area now? Do you see any more upside for Cliffside Park?

Thanks!

Vaughn Smith · Answer

@Scarlett Nguyen Cliffside park is a nice area, and a great place to househack but you'll be hard pressed to find any cash flowing multis there with a traditional downpayment. If you are buying a property and the downpayment is large enough to make the property cashflow then you're in business. The newer property will typically have less issues and repair costs than something much older and there may even be a builders warranty in place for further protection, also ask about tax abatement on the property as new construction with a built in abatement will greatly reduce your out of pocket ownership expense for the length of the abatement

Rick Borgo · Answer

Cliffside Park is nice, but I think we may already be at the high of the market. I think it will be tough to buy now at a high price and sell in 7 years and hope for price to go even higher. Buy low, sell high. Not buy high, sell higher. Plus I feel like Cliffside Park already has a lot of the New York commuters. Need to think about going further west...West side of Morris County in my opinion

Willis Chu · Answer

I was looking at duplexes in Cliffside Park as well but I can't get over the town's high property tax rate so I never pulled the trigger.

Jason Lee · Answer

Prices in Cliffside Park are still going up. 13.8% YOY in January for townhouses and condos. Supply and inventory are down quite a bit, closed sales are up. It's looking a bit frothy... like almost everywhere else.

Scarlett Nguyen · Answer

@Yavuz Bayram

Thanks for your response! I am planning to only live there for 5-7 years and hoping to turn it around and sell it later with a good price.

I am nervous that I am buying at the top now as the market has already priced in the low interest rate + low inventory + people want to get out of the city. With the vaccine is rolling out, maybe the NJ area is no longer that hot. So the price may not appreciate much.

I was trying to find a good balance of housing appreciation and a good place to settle in.

Yavuz Bayram · Answer

The reason many people are buying at these prices is because the property they are buying serves their needs, they are planning to be in these properties for a long time hoping the low interest rates and real estate price appreciation over time will cover the premium they paid.

I bought my house 2 years ago 70k over asking price and spend 120K fixing it up on top of that. I liked the house it was in my payment range taxes were super low and i plan on living here for a while. So lets say the market tanks and my house becomes half its price it doesnt matter to me. If the market goes higher my house doubles in price it still doesnt matter because im not going anywhere. So it really depends on what your goals are when buying.