Compare Listings

Weekly News (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

img

Stephen Lee

He has been in Real Estate industry in about 20 years and has been Broker of Record for 9 years. His experience includes residential, commercial, and property management. Prior to involving with Real Estate business, he has been involved in the digital communication equipment industry utilizing his engineering background and education, including running own company. He has established C Land Realty in 2011 which has grown to staffing over 100 Real Estate agents and the annual transaction amount of over $110,000,000 today.

Related posts

Weekly News (October 13, 2021)

This week’s News Brief This week’s Interest Rate (42nd Week) (By Fairway Home Loan...

Continue reading
by Stephen Lee

Weekly News (October 6, 2021)

This week’s Interest Rate (41st  Week) (By Fairway Home Loan)    30 yr fx(%)  15...

Continue reading
by Stephen Lee

Weekly News (September 29, 2021)

This week’s Interest Rate (39th Week) (By Fairway Home Loan )    30 yr fx (%)  15...

Continue reading
by Stephen Lee

Join The Discussion