December 27, 2017

1. Another New Apartment in Palisades Park, NJ? 

  • Zoning board approved apartment development between Edsall Blvd and 14th St (Adjacent area for Palisades Park and Fort Lee)
  • 14 stories / 121 units (Original plan: 17 stories, 154 units)
  • There was a concern about Flood area → Approved based on the fact that it is 50 FT apart from 'Long Swamp' area

2. Manhattan, East Harlem is economically booming   

  • Business entities increased by 37% (Double of Manhattan average) for last 10 years to 1750 (2/3 of business have less than 5 employees)
  • # of jobs increase by 30% to 39,980
  • Average salary increased by 51% to $71,700 (Average growth rate 16%)
  • Accordingly population increase sharply 124,300 in 2016: 14% increased from 2010
  • Crime deceased by 33% between 2000~2016 / Felony deceased by 25%
  • But, crime is still biggest issue; highest # of admitted mental patients among 59 communities in NY / 2nd highest drug related patients in NY

3. Garden State Plaza will get new owner  

  • The Australian shopping center company (Frank Lowy and his 2 sons) has run for 31 years
  • Sold 35 malls in US and UK to French development company, Unibail-Rodamco $24.7 Billion by cash-and stock deal (The mall in the World Trade Center is a part of deal)
  • Still premium shopping centers are good investment (18% higher than above its stock price)
  • In recent years, the Westfield remodeled and added luxury and European in an effort of stay a step ahead of American Dream Meadowland
  • Frank Lowy started Westfield in the late 1950’s with one shopping center outside of Sydney, Australia and build it into a worldwide enterprises

4. New Rental Complex: The Harper at Harmon Meadow in Secaucus, NJ 

  • Developed by Harts Mountain Industries
  • 469 units in 3 mid-rise buildings  Initial occupancy in Feb 2018
  • Complimentary shuttle service to the Secaucus junction train station
  • www.TheHarperApts.com

5. Elected governor Phil Murphy put the priority on Gateway tunnel project 

  • He requested federal funding for the project which Christie put the brakes on what would have been most expensive transit project in the country.   
  • Menendez said Christie had forfeited $3 Billion in federal funding à Under Murphy, New Jersey plans to join forces with New York to reapply for the money

6. Trump signed tax reform Become new law  

  • Standard deduction of $12,700 $24,000 for jointly filing (Individual $6,350 $12,000)
  • State and local tax including property tax limit to $10,000
  • Income Tax Brackets and rates
    10% : Up to $19,050 (Single: $9,525), 12%: Up to $77,400 (Single: $38,700), 22%: Up to $165,000 (Single: $82,500), 24%: Up to $315,000 (Single: $157,500), 32%: Up to 400,000 (Single: $200,000), 35%: Up to $600,000 (Single: $500,000), 37%: Higher
  • Charitable contributions: Deductible for itemized return from 50% of income 60%
  • Deduction on Mortgage interests Up to first $750,000 for 1st and 2nd (Existing loan $1 Million) / No deductible for equity loan interests
  • Inheritance Tax Exemption limit $11 Million (Couple: $22 Million) Double the current limit
  • Pass-through businesses (Like S Corp): 20% deduction on the first $315,000 of joint income
  • Corporate Tax: 21% effective on 1/1/2018 permanently
  • Obama care obligation Nullify from 2019 (Fed saving of $300 Billion)
  • ATM (Alternative Minimum Tax) Nullify for corporation / individual exemption increased to $1 Million
  • Medical expenses deduction continued: Expenses exceeding 7.5% of income (10% from 2020)

7. House sales increased by 5.6% in November 

  • In November, yearly rate to 5.81 Million → 5.6% , compared to last year (According to NAR)
  • Highest level since 2006 (6.42 Million) (Forecast was 5.52 Million)
  • Median price: $248,000 Up by 5.8%
  • Properties in the market in November: 1.67 Million Down by 9.7%, compared to a year ago
  • Shortage is a concern, but not necessarily enough to derail the sales momentum
  • Interest rate: 3.93% last week (4.16% a year ago)

8. Cold weather is coming toward end of the year and new year 

  • From 12/27/17 through 1/3/2018
  • Sub-zero temperature : Stay 20’s, at night 10’s
  • Recovered from 1/4/2017 to 30’s
  • Coldest weather for 100 years (Since 1917)