December 06, 2017

1. PATH will be extended to Newark Airport ?

  • NY, NJ Port Authority reviews a proposal: PATH extension to Newark Airport
  • Extension from Newark Pen Station to Airport: Total 2.4 miles
  • Port Authority allocated $1.7 Billion to this extension project out of $32 Billion of 10 year capital plan
  • Also Port Authority allocated $15 Million to this project out of 2018 budget →  Will complete in 2026

2. Request schedule increase of '156' NJ Transit 

  • '156' Bus: Between Englewood Cliffs, Fort Lee, Cliffside park, Weehawken ← Manhattan No seats available with express line: Constant problem
  • NJ Transit is negative ('159' line is enough seats) Need to adjust schedule
    159 Bus: Fort Lee, Edgewater, West NY, Union City ← Manhattan)
  • '156' line passengers: 1.76 Million last year 3.7% Up
  • '159' line passengers: 3.14 Million 1.9% Up

3. US 20 big cities' house price went up highest point in 3 years 

  • According to S&P Core Logic, 20 big cities House price: 6.2% Up in September 2017 for a year
  • US Average house price index went Up by 6.2%
  • Reasons: 1. Strong labor market, 2. Low interest rate, 3. Low inventory
  • 8 cities among 20 big cities exceeds the peak price before the financial crises
  • S&P forecasts house price will go up continually further except one worry → Not enough inventory
  • Example: Seattle 12.9% increase / Las Vegas 9% / Washington 3.1% / Chicago 3.9%

4. Low inventory pushes Pre-Sale activity

  • Buyers are looking into new construction pre-sale
  • In October, 36% of new construction sales Pre-Sale (20~30% deposit before ground-breaking)
  • Since end of 2005, lowest inventory for 12 years
  • In fact, construction speed is slow due to lack of skilled construction workers. 98,500 residential workers for last year / In order to satisfy buyer demands, 150,000~160,000 workers needed

5. Required House income for buying house : NYC is 5th in US 50 big cities

  • Minimum income to buyer average house: San Jose $216,181 (1st) – House median price $1.165 Million (16.5% Up, compared to 2016)
  • San Francisco $171,331 (2nd), San Diego $116,120 (3rd), Los Angeles $115,069 (4th), NYC $99,151 (5th
  • Pittsburg $35,205 – House Median Price $146,000

6. US economy is experiencing highest point in 10 years

  • According to Wall Street Journal, GDP $17.17 Trillion in 3rd QT (July, August, September) Economically highest peak in 10 years (More than Forecasted GDP $17.13 Trillion) 
  • Nominal GDP exceeds Nominal Potential GDP
  • Potential growth means maximum production capability by all production component without counting price inflation

7. Tax Reform is on the way between House and Senate

  • Individual Income tax
    House: 4 levels / Max: 39.6% (Current)
    Senate: 7 levels / Max:38.5%
  • Obama care
    House: Mandatory - Maintain
    Senate: Delete mandatory participation   
  • Mortgage Interest Deduction
    House: Allow up to $500,000 loan amount
    Senate: Maintain current level (up to $1 Million)
  • Inheritance / Gift Tax
    House / Senate: Double the exemption amount
    Inheritance Tax: Individual ($5.49 Million) / Couple ($11 Million) Double
    Gift Tax: Individual ($28,000) / Couple ($56.000) Double
  • Corporate Tax
    House / Senate: 35% 20% (House from 2018, Senate from 2019)