When buying an investment property, it is of the utmost importance for a real estate investor to pick the best location possible. Among the most obvious and desired features of the best place to invest in real estate are profitability and affordability. Are you looking for such an area in the US housing market 2018? Consider investing in the New Jersey real estate market! Here are the best places to buy investment property in New Jersey!
Related: Location, Location, Location: What Makes for the Best Place to Invest in Real Estate
Alloway
Median Property Price: $234,086
Price Per Square Foot: $127.67
Traditional
Rental Income: $2,534
Cap Rate / Cash on Cash Return: 6.82%
The most notable features of the best places to buy investment property in New Jersey are affordable investment properties and a high return on investment and rental income. The first city on this list, Alloway, is the perfect archetype of the New Jersey real estate market.
Atlantic City
Median Property Price: $252,210
Price Per Square Foot: $172.19
Traditional
Rental Income: $1,171
Cap Rate / Cash on Cash Return: 1.4%
Airbnb
Rental Income: $2,623
Cap Rate / Cash on Cash Return: 5.27%
Occupancy Rate: 41%
Atlantic City may be known as a casino hotspot, but buying an investment property in the city is a very safe investment. The city’s median property price, for starters, is admirably inexpensive, as it’s well below the national median and average property prices of the year. Making money in real estate is a breeze in the city, as it boasts high rental income and return on investment statistics for both rental strategies. All of these features make America’s Playground one of the best places to buy investment property in New Jersey.
Camden
Median Property Price: $102,844
Price Per Square Foot: $79.66
Traditional
Rental Income: $1,299
Cap Rate / Cash on Cash Return: 5.99%
Camden real estate is one of the most affordable in New Jersey. Its median property price is only slightly over $100,000, and its price per square foot is $79.66, according to Mashvisor’s investment property calculator. Despite its affordable prices, 63 percent of its residents are renters. This provides an excellent opportunity for traditional investment properties, which earns it a spot on this list of the best places to buy investment property in New Jersey.
Elizabeth
Median Property Price: $221,131
Price Per Square Foot: $104.57
Traditional
Rental Income: $1,678
Cap Rate / Cash on Cash Return: 1.79%
Airbnb
Rental Income: $2,430
Cap Rate / Cash on Cash Return: 4.16%
Occupancy Rate: 66%
Elizabeth is one of the best places to buy investment property in New Jersey for both Airbnb short-term rentals and traditional long term rentals. Like the majority of the cities on this list, its properties generate high return on investment and rental income and its properties are relatively inexpensive. While both strategies are profitable, Airbnb investing is the better method of making money in real estate within the city. Just be sure to check Airbnb regulations and tax laws for the city before making any decisions based on the data of current listings.
Jersey City
Median Property Price: $591,460
Price Per Square Foot: $623.33
Traditional
Rental Income: $2,267
Cap Rate / Cash on Cash Return: 1.18%
The second most populous city in the state is also one of the best places to buy investment property in New Jersey. About three-fourths of the population are renters, providing ample opportunities for investments. Jersey City is arguably the most well-known city on this list. It is also one of the most lucrative areas for traditional investments. Buying an investment property in the city is more expensive relative to the other cities in NJ, but an investor would be fairly compensated with its plentiful amounts of rental income.
Click here to find properties with cash on cash return much higher than the city average.
Related: Is Now the Time to Buy a Jersey City Investment Property?
Stafford Township
Median Property Price: $278,655
Price Per Square Foot: $144.71
Traditional
Rental Income: $1,959
Cap Rate / Cash on Cash Return: 2.26%
Airbnb
Rental Income: $3,264
Cap Rate / Cash on Cash Return: 6.07%
Occupancy Rate: 42%
Among the best places to buy investment property in New Jersey, Stafford Township is the most versatile for both Airbnb and traditional investment properties. According to Mashvisor’s investment property calculator (which you can use with a 14-day free trial by clicking here!), the average traditional rental income is about $2,000, while the average Airbnb rental income is over $3,200. Average ROIs are also admirably high in the area, with 2.26% and 6.07% for traditional and Airbnb investments, respectively.
Sussex
Median Property Price: $296,801
Price Per Square Foot: $99.74
Traditional
Rental Income: $1,547
Cap Rate / Cash on Cash Return: 1.9%
Airbnb
Rental Income: $1,988
Cap Rate / Cash on Cash Return: 4.36%
Occupancy Rate: 45%
The most balanced among the best places to buy investment property in New Jersey is Sussex. Traditional and Airbnb investments are fairly equal in terms of rental income, though Airbnb ROI beats the traditional counterpart. Nonetheless, Sussex is definitely one of the top locations to consider if you want to invest in New Jersey real estate.
Trenton
Median Property Price: $146,560
Price Per Square Foot: $110.92
Traditional
Rental Income: $1,513
Cap Rate / Cash on Cash Return: 4.14%
Like the Camden real estate market, the Trenton real estate market is among the most profitable cities in the state. It also has the second highest return on investment among the best places to buy investment property in New Jersey, making it an excellent location for long term rentals.
Related: Traditional Rental Strategy: Go for These Cities for Cap Rate
Union City
Median Property Price: $534,652
Price Per Square Foot: $405.87
Traditional
Rental Income: $2,199
Cap Rate / Cash on Cash Return: 1.47%
Airbnb
Rental Income: $2,984
Cap Rate / Cash on Cash Return: 2.97%
Occupancy Rate: 73%
The last, but definitely not least, of the best places to buy investment property in New Jersey is Union City. The city is by far one of the best in the state in terms of rental income, return on investment, and Airbnb occupancy rate.
Want to learn more about these cities and others in the US housing market 2018? Then click here to start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount afterward!
