Archive for January, 2017
As I sit here thinking about retirement, I can only wonder if I have made the right investment choices throughout my working career. Is investing in IRA’s and contributing to my companies 401K plan going to be enough? Is it too late to look at investing in real estate as a source of income after I retire?
If I purchase a condo or co-op now, it would likely take me 15 years to pay it off. That would be just in time for me to retire. Depending on my purchase price, and the condition of the area that I purchase in, I could likely get $2000 a month in rental fees.
With the money coming in from my fort lee rentals, plus my retirement benefits, I think I could just barely squeek by. Keeping in mind, I would need to put away 10% of the monthly rent I receive from a tenant, and put it towards maintenance and upgrades to my property.
Now, granted, my investment property isn’t going to be anything like those new Bergen County luxury buildings that are going up in Fort Lee. If I would have invested properly from the time I was in my early 20’s, maybe my retirement benefits could get me a year at The Modern in Fort Lee. That place is like a luxury vacation rental. I was checking it out, and am impressed with the how they incorporated all of the exterior amenities into the cost of the apartment.
Modern luxury apartments
Just in case you are unaware, The Modern is a brand new luxury hi-rise at 800 Park Ave in Fort Lee. The 47 story glass tower offers studio, 1-, 2-, and 3-bedroom apartments for rent. The apartments have open floor plans with 9 ft ceilings, floor-to-ceiling windows (with solar shades), white oak hardwood floors, large kitchens with stainless steel appliances and quartz countertops.
As if the units are luxurious enough, the benefit package you get will astound you. Starting with the interior amenities, you have a resident lounge with 2 large screen TV’s, a mini movie theater, a golf simulator (which I don’t understand), and a fitness center with spin bikes, Life fitness equipment and free weights.
Outdoors they have a swimming pool, a playground for kids, basketball and volleyball courts, and a large green lawn with a giant screen tv.
Studio apartment rentals start around $2400, 1-bedrooms for just under $2900, and a 2-bedroom will cost you a minimum of $3990 per month.
There are many hi-rise luxury apartment buildings being developed in New Jersey. It could be due to the lack of available space just across the river in Manhattan. This leads to more industry competition, and in some ways benefits the consumer.
In order to stay competitive, the leasing companies need to add additional benefits to attract tenants. A couple of benefits that attract the most consumers, in my opinion, would be a swimming pool and a fully equipped fitness center. Other benefits that are nice, would be a game room, screening room, and children’s playroom. I am just not sure how much use I would get out of them.
One of the buildings I am referring to is the new development at 110 First Street, Jersey City, NJ. Built in 2015, The One Jersey City, has a long list of tenant benefits including a state-of-the-art fitness center, yoga studio, swimming pool on the roof deck, small movie theater, golf simulator, playroom for the kids, an outdoor deck with cabanas, fire pits and bbq grills.
The fitness center has cardio equipment, free wights, brand name exercise equipment and a yoga studio. The complex is currently offering complimentary yoga classes for its residents. While the pictures on the website of these apartments with fitness center in New Jersey makes the area seem a bit small, I found a video that gave me a better idea of just how much room is in the fitness center.
As I read through the information I have given you, it may seem like I only care about what luxuries the apartment is offering. Some people may think that is a bit shallow or pretentious. Let me assure you that I am also concerned with the actual living conditions of the building. I am not one to need fancy things. I grew up the middle child in a middle class family in the Midwest.
To me, the rental rates are reasonable for the amount of space you get with each different floor plan. For a 600sqft Studio apartment, you will pay just over $2900 a month, a 750sqft one bed/one bath starts at under $3000 and goes as high as $3300, and you could rent a 2 bed/2 bath that is 2078sqft for $4500 a month.