New Jersey offers city life for less

This is the sixth in a series of articles exploring high-potential property markets in the U.S. amid the collapse of the real estate bubble. ― ED.

By Jane Han

NEW YORK ― Want everything about New York City minus its high price tag on homes? Then consider New Jersey, a neighbor that gives access to Manhattan at a bargain.

``You get to enjoy the same city life, but only at a fraction of the cost. That’s one of New Jersey’s biggest merits,’’ says Sam Ahn, president and principal broker at New Star Group Metro New York.

A two bedroom, two bathroom condo can rent for $2,500 a month in the popular Fort Lee and Palisades Park areas in New Jersey, while a similar unit costs double in New York City.

Realtors say tenants don’t mind the extra 10- to 20-minute drive or bus ride to and from New Jersey in return for the steep savings.

``These bargain hunters consistently keep up the rental demand in New Jersey,’’ said Ahn, ``and for home owners, this means a reliable market with a good pool of renters.’’

An average two bed/two bath condo runs between $300,000 to $400,000 in Fort Lee and Palisades Park, while prices go up to $500,000 in Edgewater, the borough closest to New York City.

Current prices are down about 20 to 30 percent compared to the market’s peak five years ago.

Experts don’t expect values to dip significantly further, but don’t expect a solid recovery anytime soon.

``There are buyers. There are a lot of shoppers looking around but sales just aren’t happening yet,’’ says Ann Lee, agent at Eastern International Realty in Fort Lee.

She said a continuous influx of short sale properties is one major factor holding up regular sales.

``We’re expecting more short sale homes to hit the market over the next couple of months, which means potential buyers are going to maintain a wait-and-see approach for the time being,’’ said Lee.

Despite the slow activity, realtors echo that the New Jersey’s real estate market, particularly in Bergen County, is advantageous for investors looking for rental income.

Experts advise investors to focus on areas close to bus lines to Manhattan to attract commuters.

Korean immigrants have traditionally moved and settled in Queens in New York, said Ahn, but the crowd has shifted to New Jersey over the past 15 years.

``A large Korean community, good school system and close proximity to Manhattan make New Jersey attractive over other U.S. real estate markets,’’ he added.