January 24, 2018

1. Poonglim Restaurant, Fort Lee, NJ closed down 

  • Owner Ms. Ha filed bankruptcy Chapter 7 on 18th
  • She owns Poonglim and Catering Business
  • Debtor includes Bank of Hope, Flushing Bank, Noah Bank, New Millennium Bank and a few individuals
  • Creditor meeting will be held on 2/13/2018

2. Leonia, NJ, non-resident vehicle prohibited during rush hours from 1/22/2018  

  • On about 60 local roads, between 6:00am~10:00am and 4:00pm~9:00pm for 7 days
  • $200 fine for violation
  • Broad Ave, Grand Ave, Fort Lee Rd are exceptional (Controlled by County)
  • Visiting residents, business related and delivery vehicles will be exception

3. Driving a car in Manhattan could cost $11.52 ??

  • Possibly from 2020, driving below 60th St in Manhattan (CBD) would cost $11.52 as a fee to lessen traffic (CBD: Central Business District)
  • $25.34 for truck, $2~$5 for taxi
  • Plan: Car Plate reader, Surveillance Camera, EZ Pass reader will be installed everywhere by 2020
  • It was discussed since Mayor Bloomberg era, but local politicians/drivers were objecting
  • Mayor De Blasio mentioned that income from this fee should be used only for subway system improvement

4. New Comprehensive Scholl Score in NJ → Palisades Park High School gets low 

  • New ranking system: comprehensive school score (Total:100, Standard test, Graduation rate, Attendance / Absence record, etc.)
  • Palisades Park High School (30), Fort Lee High School (75), Leonia (64), Ridgefield (52), Tenafly (86), Cresskill (86), NVRH Demarest (86), NVRH OT (79), River Dale (78), Ridgewood (73), Bergen Academy (94), Bergen Tech (96)
  • Pal Park High School: Korean 9%, Hispanic 43% (More than Asian)
  • ALARMS (Education Non-profit Organization) reported Tenafly is 11th Nationwide ranking (West Windsor-Plainsboro Regional: 6th,  Bernard Township: 13th, Milburn township:16th, Ridgewood: 24th, Glenrock:46th

5. Charles Oppler’s (Realtor Party director of NAR) view for 2018 

  • Continuation of very strong 2017
  • Inventory will stay limited as home owners continue to live in their homes longer
  • Interest rate will stay under 5%
  • New York City and Tri-State area still are a global destination for employment and job opportunity, creating new buyers everyday
  • Shadow inventory (Delinquent mortgage) has rendered substantially in 2017, but New Jersey still has one of the highest supplies nationally at about 70,000 going into 2018
  • 92% of consumers go to the Internet for information (For transactions, they will use a trusted advisor-Realtor 70% of the time, RE transaction is one of largest financial transactions in their life)
  • New construction has fallen nationally for condo and single family homes, replaced by high-density rental complex Occupied by Millennium Generation and empty nester for easier living with access to amenities and transportation
  • MID limit to$10,000 will adjust buyer/seller thinking

6. Some clarifications on Tax Reform related to Real Estate 

  • Mortgage Interest Deduction limit up to $750,000 (Only for primary residence). Investment property mortgage interest can be deducted without limit
  • SALT $10,000 limit is applied to only primary residence. Investment properties tax can be deducted without limit
  • One owns a house (Mortgage $1 Million) and rental apartment (No mortgage). If one gets loan of $250,000 out of rental apartment and pay toward house mortgage Good idea because both properties’ mortgage interest can be deducted
  • Inheritance Tax deduction limit increased to $11.2 Million (From $5.49 Million): when property is inherited, heir receives with step-up basis price Deferred tax might be gone and inheritance tax might be exempted because limit is increased      
  • Capital Gain would be about $1 Million when a widower sells the house: He has to pay capital gain tax Widower can change the house to rental property Sell the property through 1031 exchange à Inherit the house to the son (Capital gain tax and Inheritance tax might be exempted.)
  • Capital gain tax exemption ($500,000 for couple & $250,000 for single) if one lived 2 year out 5 year Changed to 5 years out of 8 years?? DID NOT pass 

7. Home construction tumbles 8.2% in Dec, 2017

  • Single family new construction fell by 8.2% to annual adjusted rate of 1.19 Million units in December (Far short of the historical average of 1.5 Million)
  • October / November had robust gains → Has done little to offset the dwindling pool of homes for sale → Caused house price to surge than wage growth
  • UER (UnEmployment Rate) → 4.1% (17-year low) Unemployment filing plunged by 41,000 last week to 220,000 (Lowest level in nearly 45 years)

8. Newark,NJ is one of 20 Candidates for Amazon 2nd HQ 

  • Amazon narrowed 238 down to 20
  • The 2nd HQ relocation promises $5 Billion in construction and 50,000 permanent jobs
  • Newark’s strong points
      Planes, trains, ships, automobiles (Airport, Seaports, subway/train to Manhattan)
      New York without New York prices
      $7 Billion tax credit
  • Final decision would be at the end of 2018