Weekly News (December 27, 2017)

1. Another New Apartment in Palisades Park, NJ?

Zoning board approved apartment development between Edsall Blvd and 14^th St (Adjacent area for Palisades Park and Fort Lee)
14 stories / 121 units (Original plan: 17 stories, 154 units)
There was a concern about Flood area → Approved based on the fact that it is 50 FT apart from ‘Long Swamp’ area

2. Manhattan, East Harlem is economically booming

Business entities increased by 37% (Double of Manhattan average) for last 10 years to 1750 (2/3 of business have less than 5 employees)
# of jobs increase by 30% to 39,980
Average salary increased by 51% to $71,700 (Average growth rate → 16%)
Accordingly population increase sharply → 124,300 in 2016: 14% increased from 2010
Crime deceased by 33% between 2000~2016 / Felony deceased by 25%
But, crime is still biggest issue; highest # of admitted mental patients among 59 communities in NY / 2nd highest drug related patients in NY

3. Garden State Plaza will get new owner

The Australian shopping center company (Frank Lowy and his 2 sons) has run for 31 years
Sold 35 malls in US and UK to French development company, Unibail-Rodamco $24.7 Billion by cash-and stock deal (The mall in the World Trade Center is a part of deal)
Still premium shopping centers are good investment (18% higher than above its stock price)
In recent years, the Westfield remodeled and added luxury and European in an effort of stay a step ahead of American Dream Meadowland
Frank Lowy started Westfield in the late 1950’s with one shopping center outside of Sydney, Australia and build it into a worldwide enterprises

4. New Rental Complex: The Harper at Harmon Meadow in Secaucus, NJ

5. Elected governor Phil Murphy put the priority on Gateway tunnel project

He requested federal funding for the project which Christie put the brakes on what would have been most expensive transit project in the country.
Menendez said Christie had forfeited $3 Billion in federal funding à Under Murphy, New Jersey plans to join forces with New York to reapply for the money

6. Trump signed tax reform → Become new law

Standard deduction of $12,700 → $24,000 for jointly filing (Individual $6,350 → $12,000)
State and local tax including property tax → limit to $10,000
Income Tax Brackets and rates
10% : Up to $19,050 (Single: $9,525), 12%: Up to $77,400 (Single: $38,700), 22%: Up to $165,000 (Single: $82,500), 24%: Up to $315,000 (Single: $157,500), 32%: Up to 400,000 (Single: $200,000), 35%: Up to $600,000 (Single: $500,000), 37%: Higher
Charitable contributions: Deductible for itemized return from 50% of income → 60%
Deduction on Mortgage interests → Up to first $750,000 for 1^st and 2^nd (Existing loan → $1 Million) / No deductible for equity loan interests
Inheritance Tax → Exemption limit $11 Million (Couple: $22 Million) → Double the current limit
Pass-through businesses (Like S Corp): 20% deduction on the first $315,000 of joint income
Corporate Tax: 21% effective on 1/1/2018 permanently
Obama care obligation → Nullify from 2019 (Fed saving of $300 Billion)
ATM (Alternative Minimum Tax) → Nullify for corporation / individual exemption increased to $1 Million
Medical expenses deduction continued: Expenses exceeding 7.5% of income (10% from 2020)

7. House sales increased by 5.6% in November

In November, yearly rate to 5.81 Million → 5.6% , compared to last year (According to NAR)
Highest level since 2006 (6.42 Million) (Forecast was 5.52 Million)
Median price: $248,000 → Up by 5.8%
Properties in the market in November: 1.67 Million → Down by 9.7%, compared to a year ago
Shortage is a concern, but not necessarily enough to derail the sales momentum
Interest rate: 3.93% last week (4.16% a year ago)

8. Cold weather is coming toward end of the year and new year

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