December 20, 2017

1. First Korean Policewoman in Fort Lee, NJ 

  • Alice Jee (23) pledged as Fort Lee police as of 12/14/2017, grew up in Fort Lee, attending Elementary, Middle, High school in Fort Lee
  • Graduated from Montclair University, major in Criminal Phycology
  • She will serve as policewoman after 6 months in Police Academy from Jan, 2018

2. New Tunnel project under Hudson River → Green light

  • NY / NJ states will pay a half of construction cost for Gateway train tunnel
  • Total cost: $12.7 Billion (2 States and NY / NJ Port Authority will pay $5.55 Billion)
  • The balance will be supported by Federal Goverment
  • The existing tunnels built in 1910 and much damaged by Sandy (One out two tunnel is shut down, 75% traffic will be reduced – Daily traffic → 200,000 passengers)

3. 4 Out of 10 New Yorkers 2 family Under the same roof 

  • Double up household 40% (10% higher than US Average / 10% higher than 2015 level)
  • Income vs Rent → 41.2% (Proper level: 30% rent / 31.4% in 2005)
  • LA: 45.5%, Miami: 41%,  NYC: 40%,  San Jose: 38.6% 
  • Age group: 23~29 → 54.5% (39% in 2005)
  • LA: 48% rent out of Income, San Francisco: 4%, Miami: 43.7%, NYC: 41.2%

4. Fed Reference Interest Rate raised to 1.25~1.5% 

  • As of 12/13/2017, FRIR raised by 0.25% (March, June, December: 3 times this year)
  • Upper line of US Same as Korea RIR (1.5%)
  • Smooth transient to normal level ← Stock market booming, Employment, Industrial Investment growth after Trump inaugurated
  • Also FOMC forecasted 3 time increase in 2018

5. Tax Reform become merged between Senate and House 

  • Corporate tax: 35% 21% (From 2018) $1.5 Trillion Tax reduction ($1 Trillion benefits big corp)
  • Individual Tax Cap: 39.6% 37%
  • Deduction on Local, State Income / Property Tax Up to $10,000 Maximum
  • Deduction on Mortgage interests Up to loan amount $750,000 (Existing loan $1 Million)
  • Inheritance Tax Exemption limit $11 Million (Couple: $22 Million) Double the current limit
  • Obama care obligation Nullify
  • ATM (Alternative Minimum Tax) Nullify

6. With New Tax Reform, over 6 years residence will benefit owning a house 

  • House owners burden will be increased 30% for next 10 years
  • Currently owning house benefit will be decreased, but more than 6 years will recover the benefits
  • Example: For $250,000 worth house for 10 years, $19,479 of mortgage interest related deduction and $9,578 of income tax related deduction will be disappeared
  • House price appreciation: 45% for last 5 years / Rent increase: 21% for 5 years
  • More than 6 years residence will benefit over renting

7. Next year, still not easy to purchase houses 

  • According to Trulia, survey among 2000 adults over 18 years old shows 25% positive, 25% negative for next year’s home buying. It indicates first time for negative comments for last 4 years / Will buyer a house for next 12 months 10% (will not buy a house 38%)
  • Environment for sale a house will be easier → Positive: 31% (Negative: 14%)
  • Still 'buying a house is American Dream' culture remains. (Age of 18~34 answers 73% Yes / Entire group answers 72% Yes) Owning rate for M Generation / X Generation will be increased continually
  • Biggest hindrance: 1) Not enough down payment 2) House price appreciation  3) Mortgage qualification  4) Bab credit history
  • House price appreciation concern: 22% in 2013, 32% in 2014,  27% in 2015,  35% in 2017,  40% in 2017