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Weekly News (December 6, 2017)

1. PATH will be extended to Newark Airport ?

  • NY, NJ Port Authority reviews a proposal: PATH extension to Newark Airport
  • Extension from Newark Pen Station to Airport: Total 2.4 miles
  • Port Authority allocated $1.7 Billion to this extension project out of $32 Billion of 10 year capital plan
  • Also Port Authority allocated $15 Million to this project out of 2018 budget →  Will complete in 2026

2. Request schedule increase of ‘156’ NJ Transit 

  • ‘156’ Bus: Between Englewood Cliffs, Fort Lee, Cliffside park, Weehawken ←→ Manhattan → No seats available with express line: Constant problem
  • NJ Transit is negative (‘159’ line is enough seats) → Need to adjust schedule
    159 Bus: Fort Lee, Edgewater, West NY, Union City ←→ Manhattan)
  • ‘156’ line passengers: 1.76 Million last year → 3.7% Up
  • ‘159’ line passengers: 3.14 Million → 1.9% Up

3. US 20 big cities’ house price went up highest point in 3 years 

  • According to S&P Core Logic, 20 big cities House price: 6.2% Up in September 2017 for a year
  • US Average house price index went Up by 6.2%
  • Reasons: 1. Strong labor market, 2. Low interest rate, 3. Low inventory
  • 8 cities among 20 big cities exceeds the peak price before the financial crises
  • S&P forecasts house price will go up continually further except one worry → Not enough inventory
  • Example: Seattle → 12.9% increase / Las Vegas → 9% / Washington → 3.1% / Chicago →3.9%

4. Low inventory pushes Pre-Sale activity

  • Buyers are looking into new construction pre-sale
  • In October, 36% of new construction sales → Pre-Sale (20~30% deposit before ground-breaking)
  • Since end of 2005, lowest inventory for 12 years
  • In fact, construction speed is slow due to lack of skilled construction workers. → 98,500 residential workers for last year / In order to satisfy buyer demands, 150,000~160,000 workers needed

5. Required House income for buying house : NYC is 5th in US 50 big cities

  • Minimum income to buyer average house: San Jose → $216,181 (1st) – House median price → $1.165 Million (16.5% Up, compared to 2016)
  • San Francisco → $171,331 (2nd), San Diego → $116,120 (3rd), Los Angeles → $115,069 (4th), NYC → $99,151 (5th)
  • Pittsburg → $35,205 – House Median Price → $146,000

6. US economy is experiencing highest point in 10 years

  • According to Wall Street Journal, GDP → $17.17 Trillion in 3rd QT (July, August, September) → Economically highest peak in 10 years (More than Forecasted GDP $17.13 Trillion)
  • Nominal GDP exceeds Nominal Potential GDP
  • Potential growth means maximum production capability by all production component without counting price inflation

7. Tax Reform is on the way between House and Senate

  • Individual Income tax
    House: 4 levels / Max: 39.6% (Current)
    Senate: 7 levels / Max:38.5%
  • Obama care
    House: Mandatory – Maintain
    Senate: Delete mandatory participation
  • Mortgage Interest Deduction
    House: Allow up to $500,000 loan amount
    Senate: Maintain current level (up to $1 Million)
  • Inheritance / Gift Tax
    House / Senate: Double the exemption amount
    Inheritance Tax: Individual ($5.49 Million) / Couple ($11 Million) → Double
    Gift Tax: Individual ($28,000) / Couple ($56.000) → Double
  • Corporate Tax
    House / Senate: 35% → 20% (House from 2018, Senate from 2019)

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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.

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