Weekly News (July 18, 2018)

1. State Government will boost support to local towns

• River Edge will get 157% increase to $1.93M / Ridgewood will get 41.7% increase
• Closter→7% / Tenafly→36.6% / Palisades Park will get only 3.1% increase
• Ridgefield→2% decrease / Leonia→1.2% decrease
• Overall, State will increase 4.3% support to $8.5B for 577 school districts
• Intension is to reduce property tax increase, but opinion is that the support level is not enough
• NJ Avg Property Tax is $8,670→Highest in US ( High education budget was relied on property tax alone)

2. Queens Residential market soars for 9 quarters continuously

• According to Elliman, 2nd Qt, Queens residential price is up 11.6% to the median price of $558,000 from last year 2nd Qt ($500,000)
• In Manhattan, 7.5% Down from last year same Qt/ Brooklyn is Down by 1.9%
• Number of Sales is Down by 6.5% to 3,421 from last year same time ($3,659)- Condo is down by 16.4%, Co-op is down by 13.2%, 1-3 family house is down by 1.3%
• Except NW area (Astoria, LIC, Sunnyside, Woodside) where many new development happen, next highest area is NE (Flushing, Bayside)→5% Up to the median price of $720,000
• Number of sales in NE for 2nd Qt is down by 20.8% from the last year same Qt.(Flushing, College Point, White stone, Bayside, Douglaston, Little Neck, Oakland Garden, Beech Hurst)→Last year, price went up by 30% : Chinese funds and population enter into the area→Hottest area in NYC
• According to Zillow, in May Queens house price hit the peak in history→up by 9.2% from the last year to $633,400

3. Manhattan Korea Town street smells bad

• K Town Chamber of Commerce(100 members) hires 1 cleaning crew to clean the street
• For the lack paying membership due (only 30% pays), it stopped for a month and resumed, but the budget is short to do complete job
• Nine(9) cleaning companies tear garbage bags and squeeze the garbage bags to compress→Waste water coming down to the street→Smells bad→needs steam cleaning/ pressurized water cleaning
• Restaurant owners are also responsible→When they dump the garbage bags, they are already damaged and leaked
• It becomes bad image of K town itself

4. “Austin Nichols House Building” forced tenant to move out illegally

• The building (338 units) in Williamsburg owned by Jared Kushner (Trump’s son in law)
• A lawsuit alleges that Kushner company harassed tenants, deliberately exposing the hazardous building materials (→Carcinogens)
• The company purchased the buliding at $275M in 2015 and it was under rent control
• The company forced out 75% tenant for 3 years illegally in order to renovate and sold at luxury condos→So far, they made $155M profits
• Governor Andrew Cuomo ordered investigation (will not tolerate any kind of tenant harassment)

5. NJ foreclosure rate is still highest in US

• According to Attom Data Solutions, during first half of the year, 5700 houses are being foreclosed→0.8% of the State housing
• 47% of houses under foreclose process are purchased between 2004 – 2008
• Atlantic City (1.48%) and Trenton(0.96%) are most severe area→highest area in US
• Time taken to process :1,161 days→3rd in US
• Delaware (0.57%), Maryland(0.5%), Connecticut (0.4%)→High area in US
• Total 191,914 house are being foreclosed during the first half of the year→Down by 8%, compared to last year→Down by 82%, compared to the peak time (2009, first half)

6. NYC, Rent security deposit is too high

• Some area request 2-3 month rent as security deposit→Highest in US
• Security deposit amount in 2016→$570M
• NYC comptroller, Scott Stringer announced the plan for a law to reduce security deposit
• Security deposit will be limited to 1 month rent
• Option to installment payment
• About $10/month insurance policy instead of security deposit.
• Highest security deposit/rent against income→Bronx, Hunter Point : 15.8% of the median income of $23,131/ Brooklyn, Brownville : 15.2% of the median income of $28,315 /Ocean Hill & Manhattan Harlem : 15.2% of the median income of $31,628

7. More Store for medical Cannabis(Marijuana) in Northern NJ

• 6 store are added→Total 12 stores
• Secaucus store opened last month (Montclair, Egg Harbor, Woodridge, Bellmar, etc)
• About 100 medical use patients are added daily basis (Cancer, AIDS, Glaucoma, Arteriosclerosis→Migraine, General pain killer)
• Governor Phil Murphy is pushing adult use of cannabis for over 21 year old, but facing republican’s objection

8. Trump plans 10% tariff for $200B (6000 items) against China→Triggers criticism

• Food market (tuna, salmon,etc)→Might use different country :China’s fishing ban period will ends in August→10% going up from September/ Mackerel, Octopus, sea weeds price might go up by 10%
• Clothing: It was not included in 1st $50B tariff items, but raw clothing material included in additional $200B tariff / tariff on machinery is more concerned
• Logistics/Distribution: Import will be decreased or importers will change to different countries to import goods
• Consumer will experience price increase→Feel penalty for average household
• Tariff becomes tax on consumers (Family, Farmers, Labor workers)
• Politicians start raising concerns, criticism, warnings