OK so here is the situation. I live in New Jersey, home to some of the most expensive taxes and real estate in the nation. Back in January, I looked at a awesome, large, end unit townhouse in the woods of Passaic County, about 35 miles from New York City. It’s in good condition, its clean, its big (2300 sq. ft) but its dated (but I can update it little bits at a time). It has a garage, finished basement, 2 BR, 2.5 baths, fireplace, backs to woods, and on a quiet road in the complex.
Over the past few months I have been looking a lot of detached houses. The closer I get to work in Bergen County, the smaller, crappier, and more expensive the houses get, and the more and more I keep coming back to that townhouse which is still on the market 6 months later. The townhouse is priced very well and is in a nice area.
If I put some money into updating it, do you think NJ’s market will be kind to me as years go by or do you think a townhouse wont make equity? Is it a bad investmt?