I keep getting asked ‘how did you know to invest in New Jersey, isn’t it too risky as you’re a UK investor?’.
To start off with, networking with a lot of developers in NYC, the different in tax and building costs is far higher in New York than it is in New Jersey… so that cost saving was interesting to me.
But, also since meeting my JV partner and his team and seeing their deals, I liked that style of investment. By a ‘bog standard house’ and turn it into something beautiful with all the bells and whistles, because buyers love that Million Dollar Listing finish… within easy reach of Manhattan.
I also could see that the pound was performing worse and worse against the dollar, so taking a little bit of money out of the UK and invest it in a different currency could only be a good thing.
Finally, same rules apply for me as they do in the UK… the property needed to be well connected. Tick… it’s 17 minutes by bus to Times Square, 5 minutes to the tram which takes you through the mainline stations to the World Trade Centre. 18 minutes by car to Newark Airport and a 5 minute walk to local shops and restaurants.
The property also needs to be in a safe area, which this is AND has potential to add value.
Yes, it’s risky because I’m new to the market… but again the choice is to either spend however many thousands on a training course versus put my £22k into a deal which is going to return me a lot of money.
Or even if it doesn’t pay out as much as I hope I’ve learnt something hugely valuable about how the local market works, understood how to get the finance and work with a team out here…. I’m taking the experience.
Ultimately, I’m sticking by the same investment principals that I use in the UK, because the same principals of what makes a good deal still apply.
AND, I’m putting my money in with someone I trust and get to learn from their experience as well as bring mine to the table.
Both of these reduce my risk.
If you are wondering whether a deal is too risky. Go back to your property investment values and principals. Does the property fit in with your investment strategy? Yes, great go ahead. No, ditch the deal and find the next.
P.S If you want to see where we are with the plans, I’ve attached the most recent from Fridays meeting with the architects!