Weekly News (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

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

Possibly from 2020, driving below 60^th 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: 6^th, Bernard Township: 13^th, Milburn township:16^th, Ridgewood: 24^th, Glenrock:46^th

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 2^nd HQ

Amazon narrowed 238 down to 20
The 2^nd 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

Related posts