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General

Pros and Cons of Buying a House in New Jersey

Pros and Cons of Buying a House in New Jersey

Deciding between buying a house or renting an apartment in New Jersey is an important decision and ultimately boils down to your circumstances. For many, homeownership is often seen as the next step in adulthood as it means you now own an appreciating asset and can decorate and remodel as you see fit without needing to ask a landlord. Still, buying a home isn’t always the best choice, so how do you decide which one is right for your circumstances?

Advantages of Owning a Home

Buying a home is a huge decision and requires a lot more planning than renting a home or apartment. However, there are a lot of benefits to being a homeowner that you might not realize, especially if you have been renting for a long time. 

Consistent Monthly Payments

The biggest benefit is the monthly cost especially in areas with a low cost of living. Gone are the days where you wait for the rent increase letters from your landlord when you want to renew your lease. Instead, you have a 30-year fixed-rate mortgage where the principal and interest rates are the same every month. You can even reduce your payment by refinancing it if the rate drops. If you’re comfortable paying a higher monthly amount, you can go for a short-term mortgage.

Build Equity and Net Worth

Another huge benefit of owning a home is that you build equity with each payment you make. Take a look at the amortization schedule you received that came with your closing paperwork to see how much you’re actually paying towards the interest chargers and loan balance. In the beginning most of your payment will go towards the interest, but over time you’ll pay down more of your loan, which will build equity. In general, it can take up to 10 years to actually build positive equity for your home, but the longer you live there the more wealth you can build.

On that topic, you can convert your home’s equity to cash, which you can use to pay for improvements on your house, consolidate your credit cards, pay for college or a business, or even purchase a vacation home or rental properties. The best part is that you don’t need to sell your house to have access to these funds.  There are a few ways you can have access to the cash:

  • Cash-out refinance – this involves taking out a larger loan amount for more than you currently owe and pocketing the difference. You can usually borrow up to 80% of  your home’s value
  • Home equity loan – a popular choice if you’d rather borrow against your equity without replacing your current mortgage. You’ll get the funds in a lump sum and pay a fixed rate.
  • Home equity line of credit (HELOC) – this works like a credit card but is secured by your home. You only make payments on the amount you use and can pay off and reuse the credit for around 10 years or so.
  • Reverse mortgage – If you’re over the age of 62 you can convert your equity to cash and you won’t have to worry about a monthly mortgage payment

As you increase your equity over the years, your home value will also increase over time so long as there’s no major hiccup in the real estate market similar to the 2008 housing crash. This, in turn, increases your overall net worth and if you do sell, you’ll hopefully be able to pocket a bit of cash.

Build Community

Owning a home provides stability, which is especially important if you have children. Most homeowners live in their homes for 10 years before selling, which means you have plenty of time to get to know your neighbors and for your children to make lifelong friends. Plus, your kids will likely do better in school as they won’t have to worry about moving and you can be involved with community organizations like school boards, PTA, etc.

Disadvantages of Owning a Home

While homeownership is great, there’s a reason why many people opt to rent apartments instead of purchasing a house. Not everyone is right for ownership so it’s important to weigh the pros and cons before you decide to take the plunge.

High Upfront Costs

While owning a house might be cheaper in the long run, you have to put up a lot of money in order to close. People often save for years to have enough to afford the downpayment for a house. And that’s just the beginning of upfront costs. Unless it’s specifically stated that the owner will pay for closing, you will need to provide it. Closing costs generally run from 2-5% of the purchase price and includes fees such as:

  • Property tax – New Jersey has the highest property taxes in the nation!
  • Mortgage insurance if you end up putting a down payment of less than 20%
  • Home inspection
  • First-year homeowner’s insurance premium
  • Title search
  • Title insurance
  • Points – prepaid interest on mortgage

It can take up to five years to recover all these costs!

Ongoing Costs

On top of the upfront money you need to spend, you’ll also have to pay a lot on a monthly basis. Sure, your mortgage might be cheap, but once you include everything else, you might end up paying the same if not more as rent on a home. If you’re used to renting, all of the costs you need to pay for may come as a surprise. You probably already pay for electricity, gas, and internet, but if you own your home, you have to also pay for:

  • Water
  • Sewage
  • Trash collection
  • Heating
  • Homeowners Association dues (if applicable)
  • Homeowners Insurance
  • Private Mortgage Insurance – if you paid under 20% with your down payment
  • Property Tax

All of this can add up to hundreds if not thousands of extra dollars that you’ll need to include in your monthly budget. Make sure you have enough money to pay for all of these as well as the basics like food, gas, car insurance, clothes, etc.

Maintenance

You are the owner of your house, which means you are responsible for everything! So if your roof leaks or an appliance breaks down, you will need to figure out how to fix that and pay for it. Living in an older house might seem romantic, until there’s something you need to fix every month. Before you fall in love with a place, ask about upkeep on key items like the roof, boiler, septic tank, etc. Ideally, you’ll want a place with a relatively new roof and appliances as they should last around 5-10 years with yearly check-ups/maintenance. 

And speaking of maintenance, don’t forget you have to maintain your entire property. So if a tree falls down into your neighbors yard, you will need to pay for its removal. If you are part of an HOA you will also have to follow the rules set out including keeping your lawn mowed, having a well-kept house, and, if you have a dog, ensuring you have the appropriate enclosures to prevent your dog from entering your neighbor’s property.

Less Mobility

What might have seemed like a dream house can end up being a nightmare. Maybe you hate your neighbors or perhaps you got a great job opportunity on the other side of the country. Whatever the reason, you need to move quickly. Unfortunately, selling a house can take some time especially if you’re moving during the winter. And while houses have been selling quickly, there’s no guarantee this will last. Plus, a fast-moving market means it will also be harder for you to find a new home without putting down a lot of money. If you know your career requires frequent moves if you just want flexibility, home ownership might not be the best option.

Falling Property Values

Homes are generally an investment and their value continues to grow over the years. But that doesn’t mean that’s always the case. For example, in 2008 property values plummeted due to the housing crisis and those who had to move during this time ended up losing a lot of money as their houses were selling for below the initial purchase price. Ideally, you can ride out the downturn and wait for the market to rebound, but that might not always be the case. Still, buying is generally a safe investment and you should only consider purchasing a place if you plan on living there for a long time.

Move to Your NJ Home

Whether you decide to buy a place or rent, NJ Great Movers can help make your transition seamless. We’ve moved hundreds of people all over New Jersey so we know exactly how to navigate the streets and homes of NJ. If you need professional NJ movers, look no further! We can help with local or long-distance moves and offer full packing services and storage.

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Packing Hacks and Guides

Alternatives to Using Cardboard Boxes for Your NJ Move

Alternatives to Using Cardboard Boxes for Your NJ Move

For many people, cardboard boxes are synonymous with moving. After all, they are easy to find, come in all shapes and sizes, and recyclable. Still, there are plenty of disadvantages with cardboard as you have likely experienced just with online ordering. Low-quality cardboard boxes can easily rip and fall apart. They also cannot stand up to moisture, which can be an issue when moving in New Jersey as rain or snow can lead to a soggy, unstable cardboard mess. And while there are plenty of size options, it can be difficult to find the right size at a reasonable price.

Luckily, you don’t have to exclusively use cardboard boxes for your NJ move. There are plenty of other options you can use that will save you money and even make the packing and unpacking process easier.

Suitcases

If you have done any amount of traveling, your suitcase is a perfect option for a move. These are made to be durable since they’re expected to be knocked around. While you might not be able to fit a lot in your suitcase, it’s a great place for packing your necessities like clothes, important documents, a toothbrush, medication, etc. Essentially, use your suitcase like you would if you were traveling for 2-3 days. That way, you won’t have to tear through all your boxes to find what you need. 

Plastic Bins

These are the perfect replacement for cardboard boxes as they can withstand moisture and fluctuating temperatures. That makes it perfect not only for moving, but storage as well. It’s especially good for items you don’t want to get wet like books and electronics. 

Don’t overpack these with heavy items as it could lead to the bin cracking or, worst case scenario, breaking. You should also make sure the top is secured either by whatever locking mechanism it has or closed either with plastic wrap or tape. The last thing you want is for the lid to fly off during transit!

Many NJ movers offer plastic bin rentals. These bins are very sturdy and dust and weather-proof. The locking mechanism of the doors is such that it won’t accidentally pop off during the move. And the best part is that since it’s a rental you won’t have to worry about where to put these boxes after you’re done unpacking. The movers will pick it up after you’re done.

Plastic Crates

While plastic crates might be similar to plastic bins, the difference is that crates cannot be sealed. Besides that, it has all the benefits of plastic bins and many movers even rent them out. Crates are built for durability so they’re great to use for bulky, heavy items or oddly shaped items you can’t pack and carry in plastic bins.

Hampers

If you’re going the DIY route, consider throwing some stuff into your clothes hamper. It’s the perfect place for your linens, towels, bedsheets, etc. Don’t throw anything fragile in there, though! Using a hamper only works for a DIY move as most professional movers require all items to be properly boxed or, at the very least, have a secure lid as they want to ensure your items are protected and arrive safe and sound to your new home. With that said, ask your NJ movers what their policy is as some companies require everything in boxes or secure containers while others do not.

Moving Bags

These aren’t super common, but if you happen to find any or if the movers have it available for rental, it’s a great option. These moving bags tend to be made out of plastic so it has many of the main benefits of a plastic bin (waterproof and durable) with the added benefit of being flexible and easy to store. Since it’s a bag, you can easily fold it up and stash it in your closet for future use. And the soft material also means you have a bit more flexibility when it comes to packing it since it will expand a bit. Just don’t overstuff it as it could lead to rips and/or damaging the zipper.

What Not to Use

There’s a lot of things you can use as an alternative to cardboard, but the number one thing you should not use are garbage bags or plastic bags of any kind. No matter how sturdy a plastic bag is, they are prone to tears and rips during transit. All it takes is for the bag to snag on a sharp corner for your contents to spill in the truck or on your new driveway. Plus, most professional movers will not put stuffed plastic bags onto their truck. Instead, they will ask you to repack the item or pack it themselves, which will end up costing you more money.

Besides plastic bags, you should also avoid anything that does not have a secure closing mechanism as much as possible. While you can always tape or wrap these containers shut, there’s always the chance that the plastic wrap will shift or the tape will fail. One exception would be your dresser. Instead of packing all the clothes into boxes or containers, a lot of movers are okay with you wrapping the drawers shut with plastic wrap. Just make sure you use multiple layers and tape the wrap down securely.

Get Packing!

Nowadays there are plenty of options available at your disposal that aren’t cardboard boxes. Of course, the trusty box still has its place. Nowadays, moving boxes are more durable and there are a wider variety of options to handle specialty items like artwork, glass and plateware, hanging clothes, and more! So don’t write off boxes completely. Instead, use them along with the other suggestions listed above.

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How To

How to Spot Real vs. Fake NJ Moving Reviews

How to Spot Real vs. Fake NJ Moving Reviews

When planning a move, you’ll probably do some research on the professional moving companies before you hire them. After all, you don’t want to get stuck with unlicensed or uninsured movers. Or, worse, a scam. For many people, reading online reviews can help them decide whether to choose one company over another. Even a few bad reviews can turn people away from an otherwise great company. The problem is that while online reviews are useful, they should always be taken with a grain of salt. After all, you can’t verify the legitimacy of said review. A NJ moving company with nothing but glowing reviews might not always be the best one for you and, in some cases, these reviews might not even be real!

That doesn’t mean reading reviews is a waste of time. Instead, you need to critically evaluate the comments in order to distinguish real reviews from the fake ones. Once you understand what to look for and how to evaluate these comments properly, you can apply this knowledge to other areas like when you’re researching a large purchase like a car, computer, or home!

Why Online Reviews

Before we get into how to evaluate customer comments, it’s important to understand the power and influence of online reviews. Since its introduction, they have been a way for people to figure out whether the service or product they are considering is right for them and if there are any deal breaker issues. In the past, reviews were relegated to the domain of subject matter experts, but the popularization of online shopping has allowed everyone to share their experience. And since these comments are from normal people, many trust them more than reviews from experts who might have received some kickbacks or payment leading to them being less trustworthy. In a way, it’s a different form of word-of-mouth recommendation.

It’s no surprise then that around 84 percent of people trust online reviews as much as personal recommendations and that an overall positive online review makes folks trust a business more. Naturally, with something as important as moving, people will always veer towards companies that have positive comments since they want to make sure the people they hire are professional and won’t break their belongings! 

Why Businesses Create Fake Reviews

Considering how much of an impact reviews can make on customer decisions, it’s no surprise that some companies will drum up fake reviews. There are usually two reasons companies craft these comments:

  1. To boost their ratings so they can look more reliable and attract customers
  2. To leave negative reviews on their competitor’s page to damage their reputation

While some movers will create a fake account and post reviews that way, others will hire people to leave reviews for them so it looks more natural. Ultimately, the impact of fake reviews has a huge impact on both the customers and businesses. For the customer, fake reviews can lead to confusion and poor choices. They might think they are hiring reputable NJ movers, but instead they end up hiring either a bad company or get scammed.

For actual moving companies, especially those targeted with negative comments, the consequences can lead to loss of revenue and damage to reputation. Depending on the platform, they might be able to remove these fake reviews, but in many cases it can take days or even weeks to get it removed. In the meantime, hundreds of customers will avoid them because of these fake negative reviews. This can have an especially big impact on smaller local movers. 

But what about the companies that get fake positive reviews? They might see an uptick in customers in the short-term, but customers will quickly find out the truth once they hire them. Depending on how bad the movers were, they could face legal repercussions.

How to Spot Fake Reviews

With so much competition in the NJ moving scene, many companies will utilize fake reviews to hopefully catch your attention. So how can you spot fake reviews? It can be difficult, but once you develop an eye for it, you should be able to root them out on almost every site.

  • Overly positive language – if a review sounds like an ad for the company, chances are it was written by the movers or someone they hired. Look for phrases like perfect experience or flawless service as these often lack authenticity.
  • Generic – while not everyone wants to write paragraphs about their moving experience, many will at least explain some parts of their move like where they moved to, if the movers went up flights of stairs, etc. If the review has zero details, you might want to take it with a grain of salt.
  • Timing of reviews – Yes, lots of people move on the 1st of the month, especially if you live in a place with a lot of renters. But not everyone writes reviews at the same time. If you notice multiple reviews posted on the same day that read similarly, chances are they are fake.
  • Low pricing – if a reviewer specifically mentions an exceptionally low price, beware. Most professional movers are priced similarly with maybe a $10-30 difference. If something is $50 or more cheaper, it’s probably a scam or there are a lot of hidden fees.
  • Comparisons – reviews claiming that one company is a lot cheaper or better than another without any clear reasons are suspicious. 

Analyzing Reviews

Not all reviews are super obvious. Sometimes you’ll need to take a little more time to determine whether it is real or not. The biggest indicator of a genuine review is that they often provide a story or personal experience. Many times they will name the movers or an aspect of the move that stood out to them. These are very rare in fake reviews! Another good tell is if the reviews portray the company in a consistent manner. Don’t mistake consistency of service with consistency of the actual words in the review. If you see a lot of comments that use the same phrase or wording, they’re probably fake!

Finally, if you’re unsure about a review, many sites allow you to click on the name to see their posting habits. A new profile with minimal activity or only activity on specific services or products could potentially be a red flag. If they user has made several posts, check them out and look for things like overuse of marketing jargon words, the same exact words used across multiple reviews, and strange posting patterns.

How to Find Reliable Reviews

It’s hard finding quality online reviews, but there are a few places to look. Google Reviews allows users to provide an array of customer feedback on a variety of services. On the other hand, Yelp allows users to provide detailed reviews and to filter these by location and service quality. Both sites utilize algorithms to detect and remove fraudulent reviews, although they can’t always catch all of them.

There is also the Better Business Bureau, which lists accredited moving companies in addition to complaints, resolutions, and a general overview of the company’s performance over time. All companies listed on the site have to go through a strict process in order to be listed.

Finally, professional movers must all register with the United States Department of Transportation (USDOT), which requires them to provide proof of insurance, incorporation, etc. Once they receive all of this, the movers will receive a USDOT number which customers can look up to ensure all of the information is up-to-date and if there are any complaints.

Hire Reliable NJ Movers

Finding a good moving company takes time, which is why you should start looking for one at least a month before your move date. You want to take your time doing your research so you don’t accidentally fall for scam. If you’re in the market for a NJ moving company, give NJ Great Movers a call. We are licensed and insured and have been in business long enough to rack up hundreds of positive reviews. Reach out to us and we’ll work with you to make your next move seamless.

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General Moving Tips

The Honest Pros and Cons of Living in NJ

The Honest Pros and Cons of Living in NJ

New Jersey is more than just the state between NYC and Philadelphia. Sure, that is the major draw of the area, but there’s so much more to the Garden State than its proximity to other cities. For locals, New Jersey offers the perfect blend of city life, accessible shorelines, and beautiful countryside. Despite its small size, New Jersey has a lot to offer its residents. Of course, it does have some faults, but what location doesn’t? If you’re considering a move to New Jersey, read the points below to help you with your decision.

Close to Major Cities

No matter where in New Jersey you move to, you’ll have easy access to either NYC or Philadelphia. New Jersey is a relatively small state, so even if you do end up in southern NJ, you can get to NYC in around two hours. Commuting to NYC or Philadelphia is common for many NJ residents. So you don’t have to give up access to all the amazing amenities these cities have to offer if you want to live in the suburbs. Depending on where you move to, you can even take a quick 15-30 minute train ride to get into Manhattan!

You don’t even need to go into NYC or Philadelphia to get access to city amenities. Jersey City and Newark both offer plenty of things to do including some amazing restaurants, great bars and nightclubs, international airport (Newark Airport), and more! Many long time residents don’t even go into NYC unless necessary because New Jersey has pretty much everything they need.

Excellent Quality of Life

Sure NYC might be exciting, but with so many people packed into a small place, it’s not always going to be the cleanest or safest place. While there are certainly unsafe parts of New Jersey, overall New Jersey is one of the safest states in the United States. If you want to avoid high crime rates, avoid moving to Camden, Trenton, Paterson, and Atlantic City as crime rates are quite high at these locations.

Besides being safe, New Jersey also has a booming job market (the state is home to 17 Fortune 500 companies), great access to healthcare, and has the best public schools in the nation. On top of that, you have access to plenty of entertainment and access to nature thanks to the many county and state parks. It’s no surprise that New Jersey consistently ranks in the top ten happiest states in the country. 

Beautiful Scenery

Despite its small size, New Jersey offers a wide range of scenery to enjoy. Traverse the 130 miles of shoreline and more than 60 designated beaches where you can swim, sail, surf, scuba dive, and fish. If you’re not into the beach then there are plenty of parks for you to enjoy. Go to Liberty State Park for stunning views of the Manhattan skyline and the Statue of Liberty. During the spring, go to Branch Brook Park in Newark as it is home to one of the largest collections of cherry blossoms in the country! 

If you want a bit more exercise, visit Wharton State Forest, the largest state forest in New Jersey. There are plenty of trails for you to explore on foot, bike, or horseback. You can also bring a canoe or kayak and paddle on the lakes. There are plenty of other small parks dotted around New Jersey so even if you get tired of Wharton, you can simply head to another place.

Great Educational Institutions

New Jersey has consistently ranked as the number one state in public education. Of course, not all public schools in the state are the same, but the majority of schools offer a great student to teacher ratio, extracurricular activities, advanced placement classes, and more. Besides public schools, there are also plenty of private schools to choose from if you want to go that route. Neither option is a bad choice and you can rest easy knowing your child will be getting some of the best education in the nation.

Besides primary schools, New Jersey is also home to some of the best universities. There is, of course, Princeton University, the fourth oldest institution of higher education in the United States as it was chartered before the American Revolution. It is also one of the world’s most prominent research universities with people traveling across the globe to attend. Besides Princeton, New Jersey is also home to Rutgers University, the largest university in New Jersey as well as the second oldest behind Princeton. 

Rich in History

New Jersey is steeped in American history with plenty of historical sites and landmarks. The most notable historical site is, of course, Ellis Island, which is partially owned by New York. There’s also the Thomas Edison National Historical Park, which includes the lab and house of Thomas Edison and the battlegrounds of the Revolutionary War in Princeton. But there are plenty more smaller sites like the plaque in Hoboken to commemorate the first ever recorded baseball game in history or the various houses dotted across New Jersey with historical significance due to its architectural style. Wherever you go, there’s history!

It’s Expensive

With all the amazing amenities New Jersey has to offer, it should come as no surprise that you end up paying for it. Cost of living in New Jersey is quite high. The median home price is around $550,000 compared to the national median of $440,000. The prices only go up the closer you get to a major city like Newark or Jersey City. And speaking of housing, property taxes are some of the highest in the nation, even higher than New York! You’ll also be paying a lot more for the basics like utilities, groceries, and more. Still, there are affordable places outside the more popular cities and towns in New Jersey, but it might mean a longer commute. 

Extreme Weather Conditions

Being on the coast makes New Jersey vulnerable to coastal storms and flooding. It is also at heightened risk of hurricanes and tropical storms which, when they land, leads to devastating results as seen by Hurricane Sandy. With rising sea levels and warmer temperatures, New Jersey will likely see more tropical storms and hurricanes in the upcoming decades. On top of that, the aging infrastructure makes the state even more susceptible to natural disasters. On the other hand, New Jersey is prone to nor’easters, which can lead to below zero temperatures and blizzards, making for a difficult winter.

Horrible Traffic

You might think NYC has bad traffic, but New Jersey has some of the worst in the country. In fact, it is the 9th worst state for driving! Much of the traffic is concentrated around the major roads, bridges, and tunnels that lead to NYC or Philadelphia due to all the commuters. If this is your plan, know that New Jersey residents spend an average of 86 hours per year stuck in traffic! What should be a 25 minute car ride anywhere else can end up lasting an hour or longer depending on when you’re driving in and if there’s any construction or an accident. 

Make Your Move to New Jersey

If the pros outweigh the cons for you, then make sure to give NJ Great Movers a call to help with your relocation to New Jersey. We’ve helped hundreds of customers make a smooth transition to their new home. And with New Jersey being so expensive, you’ll be happy to know that we do our best to offer services that match your needs and budget.