March 14, 2018

1. NJ Affordable Apartment will be increased  

  • Judge Mary Jacobson sentenced to build more affordable apartment in Princeton (753 units) and West Windsor (1500 units) in NJ by 2025
  • Two towns were receiving funds for affordable housing, but not many affordable units built → Two towns must submit their construction proposal by 7/24/2018 to the court
  • FSHC (Fair Share Housing Center) mentioned that it is positive decision for about 100 towns that built very little number of affordable units
  • Princeton’s median income is $167,000 / West Windsor’s median income: $118,000
  • In 1975 affordable housing law initiated, but not followed (190 towns agreed, but 100 towns did not performed)

2. Pilgrim Church building in Paramus sold at $6.5 Million 

  • Sold to The True Light Presbyterian Church (They have to sell their own church: worth of $5.5 Million)
  • MOU signed Buyer starts paying the mortgage($30,000) for balance of $4.5 Million
                           Payment for 3 month till May will be deducted from principle amount
                           From June, 50% of payment go to principle reduction
  • Balance of $2 Million is owner (PCUSA) financing (4%, for 5 years)
  • Deed will be transferred when owner mortgage starts. PCUSA hold lien till owner mortgage ends.

3. Englewood Town will investigate Leonia’s banning non-residence vehicles 

  • The town will request The State, DOT to investigate the legality of Leonia’s rule
  • Two towns were trying to negotiate the solution, but leads to impasse
  • Zudah Zeigler, Leonia’s Mayor keeps his position:
              No complaining from Palisades Park, Fort Lee
              If a car stopped, no scrutinizing and it takes 10~15 sec
              This rule helps residents’ and students’ walking to shop and go to school

4. Manhattan Luxury Apartment sold at $30 Million

  • Owner: Saudi Prince (Heritage at Trump Place at 240 Riverside Blvd, #6A-T)
  • 6 Units combined into 1 unit ( 5th FL~ 7th FL): 10,500 SF 3Br / 4Bath, 3 Terrace
  • Listed at $75 Million in 2012 $48.5 Million in 2015 $40 Million recently Sold at $30 Million
  • Monthly M fee: $27,500

5. Toys R Us will shut down around 800 stores nationwide 

  • If there is no last-minute save to bail out Will cease re-organization plan under Chapter 11
  • 1948 established 1996 Babies R Us established 1600 stores worldwide
  • Amazon took on-line market / low response to mobile shopping trends
  • Toy Manufactures: Mattel, Hasbro Stocks dropped by 7.6%, 3.6%

6. Mortgage Rate 4.46%: Highest during last 4 years 

  • Peak rate since Jan 2014 / Entered into 4% range from Jan 2018
  • Impact to Re-Fi market → 1.4 Million customers lost Re-Fi opportunity
  • For last 40 days, Re-Fi deals reduced by 40%

7. House Flipping is increased under short inventory 

  • According to CNBC, 207,000 flipping nationwide in 2017 Increased by 10% from last year
  • Highest flipping since 2006 (Highest in 2005 347,000)  
  • Profit rate →49.8% / 51.9% in 2016 / 28% in 2006
  • 65% of flippers are cash buyers (Fannie Mei allows up to 10 houses for investor mortgage)
  • Highest Profit: 168.2% Scranton, PA. Pittsburg, PA 5%, Baton Rouge, LA:122.9%, Philadelphia, PA:115.7%

8. 2016~2017 Fiscal Year, F-1 Visa issue: 390,000 Dropped by 16.6% 

  • Universities / Colleges are concerned (Foreign Students spend $2.7 Billion each year)
  • Korean students: 22,856 Decreased by 9.9% ( 2010~2011 Fiscal Year: 45,638)
  • Reasons: Visa process become difficult / Anti-America Go to Canada, England, Australia / Hard to get a job with H-1B after school