Investing In Montclair Real Estate

Investors in Essex County, NJ have many real estate buying options ranging from purchasing single-family homes, townhomes, condos, land, and multi-family properties. With the downward trend of the current market, now might be an excellent time to take advantage of the market and expand your investment portfolio. Here in Montclair, investors can also purchase “fixer-uppers” to rent or “flip” depending on your goals.

Fixer-Uppers

Many Montclair real estate investors consider fixer-uppers as a component of their real estate investment strategy. Distressed properties or properties in ill-repair are available in any market. The obvious advantage of a fixer-upper is the lower market value of the home compared with other houses in the neighborhood.

Novice Investors vs. Savvy Investors – Which are you?

Most savvy investors recommend that you first locate the least desirable house in the best Montclair neighborhood. Once you have performed your “due diligence” you can determine what it would cost to bring up the value of that property to its full potential market value and if it is within your budget. Many novice real estate investors look for properties that only need cosmetic fixes rather taking on a complex task of fixing up a run-down house what with its major structural repairs.

Historical Dwellings =Tax Advantages

Did you know there are tax breaks for a fixer-upper house if it is considered an historical property? In the Montclair area, there are numerous designated “historical residences”. As a Montclair real estate investor, you can take advantage of a little know “perk” if your property qualifies as a “rehabilitated building or certified historic structure”. These Montclair properties currently enjoy a 20 percent investment tax credit for qualified rehabilitation expenses. Your Montclair home must be designated as an historic structure which is listed in the National Register of Historic Places or so designated by an appropriate state or local historic district also certified by the government. Remember - the tax code does not allow for deductions for the demolition or significant alteration of a historic structure.

For more information on the rules relating to this topic, be sure to contact the U.S. Department of Housing and Urban Development for more information on guidelines of Section 203 (K) rehabilitation loan program.

Be a Smart Montclair Real Estate Investor

Being a smart Montclair investor means working with an area real estate expert. Montclair Real Estate and her team of Montclair home buying agents have an insider’s perspective on the Essex County real estate market. Why not put the power of their collective experience to work for you? Contact Montclair Real Estateand her team for the best strategies in buying investment properties for sale in Montclair, NJ.