by stephenlee 1. NYC is difficult to be Amazon’s 2nd HQ
- 238 city’s proposals from 54 States
- Tough competition: NYC → Probability 14:1 (Manhattan Mid-town West, Lower Manhattan Financial District, Queens LIC, Brooklyn Triangle)
- Probability #1 → Atlanta, GA (3:1)
- Boston, MA / Austin, TX → 7:1
2. New Luxury Condo on 31st Street in Manhattan, NY
- 30 East 31st Street between Madison and Park Ave: 40 story building
- Developer: Extine Developer (Eric Extine) → To build not just glass tower, but building conformed with neighbor
- 13 of 1 Bedroom unit → $1.65 Million (866 SF), 2 Bedroom unit (1,677 SF) → $3.5 Million
- Top floor: 2 Bedroom Duplex style Penthouse (3,354 SF) → $12 Million
- Will open lunching event on 11/01 → Construction will be completed in Spring 2019
3. New Jersey tallest condo building in Jersey City: ’99 Hudson Residential Tower’
- 79 stories / 900 FT / 781 units (Goldman Sachs Building: 781 FT)
- Currently 16 floors up → Complete in 2019
- Architects: Perkins Eastman / Developer: China Overseas America, Inc.
- Marketing: Marketing Directors
- Price: $1400 / SF → 64 % of Manhattan condo price (1 BR: Starts $889,000, 2 BR: Starts $1.5 Million)
- Developer purchased the lot at $68 Million from Harts Mountain Industries in 2013
- Ask for internal sales ‘Helena Liu’ (C Land Realty New York member)
4. Tax Reform hits Homeowners (by Lawrence Yun, NAR chief economist)
- If Tax reform passed, Home owners will hit
- Homeowners already pay 80~90% of all federal income tax in any given year
- The plan to double the standard deduction ($12,000 to $24,000) → Fewer homeowners will use mortgage interest deduction → Only wealthy people will use interest deduction
- Big family will loose more because deduction of $4050 per person would go away
- Renters → Standard deduction make them better off → More renters (Typical wealth of renters has fallen from $5,900 to $5,100 since 2010 while home owning households have seen their wealth jump from $192,800 to $231,400)
- Congress must not forget sustainable and successful homeownership should be encouraged
- Homebuilder group opposes new tax reform
- NAR reported tax reform would lower home values by 10% overall
5. Amazon will start Pharmacy business? In-home delivery?
- Pharmacy industry → $421 Billion
- Amazon obtained Pharmacy license in 12 different States (New Jersey, Connecticut, Arizona, Michigan, etc.)
- They will start as early as next month
- Expect not that easy due to complicated payment option with insurance, etc.
- In-home delivery will start 11/08 by ‘Secure-lock Service’
- Wanted customers will install Key In-Home Kit ($249) → Delivery man will open the door/deliver the goods in 5 min → One time secure code will be used → After delivery, One time code cannot be used, change to original code
- NYC, LA, etc. in about 40 cities will be available
6. Commercial RE market is slowing down
- Value gap between buyers and sellers are widen
- Office building transactions in NYC are relatively better than other sectors, but the value gap is about 10%
- Commercial RE Market has been good for past 8 years → Thought: will come to end soon
- According to WSJ, REITS sold $46.7 Billion this year ($71 Billion last year)
- According to CBRE, demand for commercial rent stays flat (Building owners think too optimistic)
7. Reasons to lower the house price
- According to Recent CBS report, the following reasons will cause to lower house price
Murder/accidental death/criminal in the house (ex. Sandy Hook incident)
Haunted house/ill spirited house (in NJ, no obligation to disclose) → Often the court favors to buyer who claimed seller did not disclose
Near cemetery (NAR reports about 12% lower)
Near funeral house (NAR reports 6.5% lower)
