Real estate is touted as one of the smartest investments to add to your financial portfolio as it allows for diversification, especially in recent times when the worldwide economy is experiencing drastic upheavals. Unlike risk-bearing investments like stocks or bonds, real estate investments are more tangible and relatively steady despite economic shifts. It never dips in value and you’re guaranteed to continue reaping the benefits of your investment for years to come.
Moreover, in most U.S. real estate markets where the demand for real estate is high and the housing inventory is scarce, more people are turning to renting as a more fitting living arrangement which, in turn, becomes a great opportunity for generating passive income among those investing in rentals.
However, remember that real estate is not created equal – some may present better investment opportunities than others so it pays to be smart in your decision-making. This entails researching the factors that make a property highly desirable, determining if the location you’re eyeing is an emerging neighborhood with high growth potential, and choosing the ideal location.
That said, Westfield, New Jersey is a strong place to consider as an ideal place for your real estate investment. Lying 16 miles southwest of Manhattan in Union County, Westfield is poised for growth. Smart investors are eyeing this town for investment opportunities, given the many winning facets of Westfield, NJ real estate.
Read on to learn more about this lovely and historic town, why investing here is one of the best financial decisions you can make, and how to get smart and get started on investing in Westfield, NJ real estate.
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WHY INVESTING IN WESTFIELD IS A SMART MOVE
Other towns attract attention generally because of their relative peace and quiet in comparison to big cities, the abundance of nature and opportunities for outdoor leisure, tight-knit communities, family-friendly vibe, and affordability. Westfield has all these and more.
Perfect from the vibe to the location
This medium-sized town appeals to many for being chic, trendy, and family-friendly all at once, which means anyone is welcome here from young professionals to growing families to retirees. The quality of life, schools, and business opportunities are excellent. Most of all, its strategic location near New York City makes homes for sale in the area highly sought-after. Only a half-hour train ride away, Westfield is a preferred residential locale for people who work in the Big Apple.
Moving forward – and looking back
What makes Westfield even more desirable is how the town’s residents manage to move forward without forgetting to look back at the town’s historic heritage. Westfield’s downtown business district is under development with the aim to not only boost the town’s economy but also to preserve its historic charm. With the local Chamber of Commerce taking the lead, it is bringing businesses together so that everyone has a hand in Westfield’s progress. The town has also been taking various redevelopment and revitalization projects to stay in step with economic trends and demands.
A town of many accolades
In addition, Westfield has been mentioned in many listings of top towns and cities, the most recent of which are:
- Niche.com: #2 among the best places to live in New Jersey (2023)
- Money Magazine: #83 among the best places to live in the U.S. (2023)
- NJ Monthly: #3 among the best places to raise kids in New Jersey (2024)
Considering its numerous accolades and how hard the community works to ensure sustainable, long-term growth and development, everything is in place to guarantee Westfield’s growth.
Red-hot housing market
In an economic climate where other markets have eased up on activity, the Westfield, NJ real estate market is red-hot. Westfield, NJ homes for sale are in high demand given the town’s desirable features and property prices have been trending up in recent years. Should you opt to buy a home here for yourself, you’ll be able to build equity fairly quickly; investment properties, meanwhile, can guarantee a steady stream of income, given the high interest in the area.
Best quality of life
Perhaps what makes Westfield even more appealing than the appreciating property values and the blossoming economy is the kind of life that one can have here. People looking for more balance in their lives consider living in towns that are far enough from the urban centers to experience a more relaxed and tranquil atmosphere but close enough that traveling to these urban centers is short and with many options.
Westfield fits the bill – it’s a commuter town that provides convenient access to NYC. It has its own set of offerings and personality, with a rich selection of stores by both local brands and major ones, numerous restaurants, art galleries, parks, woodlands, and walking spaces. The unbeatable quality of life is why people consider settling here for the long term.
Investing in houses for sale in Westfield, NJ also gives you the chance to create generational wealth. Your home’s value grows over time despite ups and downs in the economy and even during periods of inflation. You’ll be able to pass your property on to your children, setting them up well for the future. This is especially true if you choose property wisely, whether you’re purchasing a home for you and your family to live in or investing in rental properties that generate income on a regular basis.
PROFITABLE PROPERTY TYPES
There are many types of properties for sale in the Garden State but houses for sale in Westfield, NJ ensure better chances for you to reach your investment goals. Your choice of property largely depends on what these goals are, how much risk you’re willing to shoulder, and if you’re looking to make the property your primary source of income or if it’s simply to help you make a little extra.
Single-family homes are a good way to get started on real estate investing. As mentioned earlier, buy one for yourself and you’ll earn equity from the property. But you could also turn it into a source of passive income by renting it out long-term. Single-family homes appeal strongly to families who have yet to put up enough funds to purchase their own home and will most likely stay for a long period; thus, guaranteeing your cash flow for an indefinite period. However, one home means only one set of tenants to rent it out to and, as a result, only one source of income. You might want to look at other alternatives if you want multiple sources of income.
Purchasing a luxury home to rent out may be the way to go if you prefer dealing with only one tenant but are looking to earn more. A well-maintained luxury home with top-tier features and amenities would command a far higher rent than ordinary single-family homes, and it will certainly appeal to a more affluent set of renters. A substantial initial cash outlay is required to buy a luxury home, however, although this shouldn’t pose a problem if you’ve prepared for this.
You may also consider investing in townhouses and condos among the available Westfield, NJ homes for sale. A single building (in the case of townhouses) or several units (in the case of condos) that you buy will be able to house more than one set of tenants. This translates to a steady cash flow, even if you have one or two unoccupied units.
When choosing what types of properties to invest in, always consider how much effort it will require to maintain them and the types of tenants you want to attract. Another factor that will ensure your income from your rental properties is how appealing their location is to potential tenants. You may opt to find homes in Westfield that are near schools and parks to attract families, for instance, or you could look at condos and apartments that are close to or within the busier parts of town.
REAL ESTATE INVESTMENT-WORTHY WESTFIELD, NJ NEIGHBORHOODS
Finding the right neighborhood for your real estate investment is a matter of assessing your budget and anticipating what it is that your prospective tenants will look for. As mentioned earlier, if you’re hoping to attract families to your properties, they will want a home that is close to schools, parks, restaurants, and other community amenities; and they will want to live in a safe community. If you’re targeting professionals, your property should be accessible to public transportation or located someplace where the commute time is manageable.
If you’re looking to purchase luxury estates, you may very well find them in neighborhoods like Wychwood and The Gardens, both known for their excellent quality of life, picturesque environment, and elegant homes on sprawling lots.
If you’re more interested in condominiums, duplexes, and townhouses, Indian Forest will have what you’re looking for. This neighborhood is just minutes away from the business district and is ideal for professionals and single individuals.
Neighborhoods such as Stoneleigh Park and the lively downtown area are sought-after by families for the available homes and quality of life they offer. People love the stylish single-family homes in these communities, which range from turn-of-the-century creations to new construction. The best part is that these neighborhoods provide open fields and walking paths, along with a strong feeling of community that instantly makes families feel welcome.
Read more about all the other neighborhoods in Westfield, NJ and the types of lifestyle and properties that await you in each one.
RENTING BEFORE BUYING: A GOOD INVESTMENT STRATEGY?
You may opt to purchase property outright or you may also consider renting it as your initial step toward buying it in the future. Renting a property before purchasing it is a viable way of investing in property, though you have to weigh the pros and cons first. A real estate professional’s advice regarding whether this option is good for you or not is also recommended.
When you choose a rent-to-own property, you pay an option premium (around 5% of the property’s sale price) and make monthly payments, the amount of which you and the seller must agree on. You and the seller must also reach an agreement on the length of time that you’ll be renting the property before you actually purchase it.
Renting to own property is a good way for you to build equity and your credit, too, which will help if you haven’t been able to qualify for a mortgage. It also lets you lock in the price of the home to a level that you’re comfortable with, avoiding future increases. This is particularly helpful if the home you’re looking to rent is in a location that has historically seen significant property value appreciation.
On the downside, you may have to make higher monthly payments than the average rent in the area because part of the payment is going to the down payment for the house. You may also be responsible for things like property taxes, maintenance costs, and homeowners’ association fees.
Renting to own property is a good way to dip your foot into real estate investing and an easier way for you to obtain property even if you’re unable to secure a loan – but you need to weigh the pros and cons of this endeavor. It’s best to get advice from a lawyer and a real estate agent for you to fully understand the process and to make sure that any contracts that will be signed will still be in your best interests.
TIPS FOR A SUCCESSFUL WESTFIELD, NJ REAL ESTATE INVESTMENT
Success from investing in Westfield, NJ real estate doesn’t happen by magic. It needs careful planning and research and also requires more than the usual investment one would make for a standard single-family residence. Aside from choosing the right location and making sure you’re financially ready, here are some ways to ensure that your investment in Westfield, NJ real estate will pay off.
- Know the market.
Figure out how much properties go for in your chosen location and how much rent you could charge. Understand the needs of your prospective tenants and make sure that the properties you choose are optimized to meet them. Expect renovations to be a part of the process; you want to make each property as attractive as possible to your target market.
- Know the relevant laws.
You might have some brilliant ideas for transforming your rental properties but you might also end up wasting time and money if local zoning laws prohibit them.
Do your homework on the neighborhood.
Each neighborhood that you invest in must be more than familiar to you. Your prospective tenants will want to know everything there is to know about their potential home and you have to be ready with answers to their questions. Having in-depth knowledge about the neighborhood shows how invested you are in the area.
- Time your purchases.
Buying in a market where property values are on the rise bodes well for your investment’s future prospects but you want to buy as low as possible. Working with a real estate professional who understands your needs as an investor will allow you to time your purchases right.
- Get help from the experts.
You’ll learn a lot more about the area, property prices, and the state of the market from professionals who have been in the field for a long time. A real estate agent will not only help you find the best properties in your price range but also shield you from any unnecessary risks and estimate your potential cash flow from each home. They are also likely to find undervalued properties for you, giving you a greater chance of enjoying a significant return on your investment.
EXPLORE THE WESTFIELD, NJ REAL ESTATE MARKET
The Westfield, NJ real estate scene is exciting and dynamic, and there are potential investments to discover, whether you’re looking for a home for you and your family or one that could help expand your investment portfolio.
My name is Alyssa Stanek, and as a Realtor in Westfield, NJ, my goal is to help you meet your goals by leveraging my in-depth knowledge of Westfield and looking out for my clients’ interests.
Investing in real estate is not a simple matter, but with my help, you’ll be armed with all the knowledge you need to see it through and achieve success.
Get in touch with me at 201.888.3507 or send me an email here. I’m looking forward to helping you secure your investments in Westfield!