ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

To Buy or Not to Buy: An Analysis of Home-Ownership in New Jersey

Updated on August 21, 2015

Why Buy a Home?

Even as The Apartment List Renter Confidence Survey (RCS) declares that the renter population is at its peak, as compared to the past 20 years, there are several pragmatic reasons why being a homeowner is an achievement to be proud of. It is the most important long term investment that a person makes and it adds an essential asset to their name. Moreover, it is a sound investment, since the more a home buyer progresses on their mortgage payments, the more equity they accumulate.

Given that the real estate market is mostly stable in the long run, property prices are likely to appreciate, accruing further equity to the owner, which he can either choose to borrow against or cash as profits when he sells his property.

Benefits of Being a Home-Owner

A home owner will also receive tax benefits, with the mortgage interest and property taxes being deductible from the total payable tax, as is enumerated by the analysis presented by Isabella Community Credit Union. Owning a home also gives a sense of security to a person, both financially and emotionally.

Financially, one is able to plan better as personal property has fixed costs, as opposed to a rented establishment; and emotionally, one develops a sense of being rooted and has the freedom to personalize their space in the truest sense. It also affords a person more control over his/her environment, making it conducive to stability.

Why Buy a Home in New Jersey?

The Garden State is a popular choice for buying a home, especially due to its proximity to New York. However, that is not the only reason. Real estate in New Jersey has been experiencing a boom since March 2015, according to an article in Housing Wire. The reasons cited by the article include a surge in demand due to low interest rates and lesser down payments sought by Freddie and Fannie. It also speaks of the change in demography of home buyers, namely the single millennial between the ages of 18 and 34, who are looking to secure themselves. This makes it hot property indeed.

Home Loans

It is recommended that you first find yourself mortgage before you choose the house you buy. This is the smart way to go, since it will help you determine what you can afford. What you can afford will in turn be determined by your FICO or Credit Score. Scores can range from 300 to 800 and the higher your score, the more likely you are to be considered for a loan. It is popularly believed that it is very difficult to obtain a loan for a new construction in New Jersey. However, this has been contested by First Equity Mortgage, who suggest speaking to a loan specialist before taking a decision.

What Does the Law Say?

The New Jersey Homeowners Security Act of 2002 (NJHOSA) sets down the guidelines for lenders in the state. This Act is designed to protect the interests of the owner, by way of several prohibitions levied on lenders. It ensures that scams like Negative Amortization and Balloon Mortgage, i.e., ones with hidden lump sum costs, are not suffered by homeowners. However, ultimately, it is the owner's responsibility to remain aware of the law or to seek out legal advice so as to prevent any fraudulent exchange. The New Jersey Department of Banking and Insurance's Guide for First Time Home-Buyers recommends that one read the contract thoroughly before signing on the dotted line.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: ""

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)