Weekly News (October 25, 2017)

1. A Fraud Case in Palisades Park, NJ

Mr. K (YoungSin GunKang) accused of taking about $1 Million out of ‘KYE’ in Korean + $500,000 (Loan from individual) and fleeing
$3000 per account, Total 31 accounts / Each turn, each member will get $90,000
Mr. K’s store was vacated / He moved out form his house in Palisades Park as well
Victims are getting together to determine the possible legal action
They believe Mr. K is in US still → decided to file criminal case
Previously Mr. K was filed for $80,000 check fraud

2. Emerson Golf Club (Korean owned) becomes Bergen Co Public Golf club

Bergen Co passed the purchase unanimously at $8.5 Million
Opened in 1963 / 135 Acre. Korean owner (Emerson Management LLC) purchased at $10 Million in 2008 (Semi-private: Annual membership $4,000, Family $6,000, Company $18,000)
Closing will be within a few weeks → Renovation during winter → Open next Spring
Total 6 Public courses: Overpeck, Darlington, Orchard Hill (Paramus), Valley Brook, Rockleigh
Question for profitable operation → Valley Brook course made $518,000 net profit

3. The Modern in Fort Lee is being accused of violation of fair housing regulation

According to Star Ledger (10/11/2017), FSHC (Fair Share Housing Center) filed suit against The Modern
2 buildings (47^th floor each: 900 Units): 1^st Building was built 2012 ~ 2014. 2^nd building is being built. The tallest building in Bergen County
Agreement with the Town → 20% will be low-income units, but currently NO units
Current Rent → Studio: $2,000 / 3 Br: $7,300
FSHC is handling about 350 violation suits in NJ. In the past about 100 cases resolved

4. NYC claimed Unfair Tax Access for non-white residence area

Flushing, Bayside, Queens claimed for higher property than other area with more white residence
TENNY (Tax Equity Now NY) filed legal suit
Flushing: White → 2% / Real value vs Access Value → 101.24%
Bayside: White →5% / Real Value vs Access Value → 103.5%
Queens: White → 8% / Real Value vs Access Value → 102.25%
Manhattan Battery Park: White → 3% / Real Value vs Access Value → 49.92%
Manhattan Murray Hill, Gramacy: White → 3% / Real Value vs Access Value → 87.19%
TENNY claims that minority area paid $376 Million tax more than actual value

5. NYC proposed ‘Making Rent Count’ program

To help people with bad credit → Good rent payer can get positive credit
So far, no system to collect this type of data
Only Experian has system with landlord’s participation.
Proposal suggests to apply this system only to desired participants.
Participating Landlord’s incentive (options):
1. Collect rent from a bank → bank reports to credit company
2. Get loan for 1 year rent → tenant pays back to the bank
NYC projects 76% of renters credit will be increased

6. Millennium Generation (18~34 year old) is heating up the RE market

According to ‘Realtor.com’, Millennium Generation is moving into RE market, mainly suburban area
Among 32,000 cities, most active 10 cities are selected → Millennium Generation owner: 50%
#1 is Texas, Fort Worth suburban: Median price: $164,441.
#2,#3 are Michigan, Livonia and Kentwood: Median prices $223,780 and $118,833
#4 is MA, Medford(Boston suburban): Median Price $541,158
#5 is Colorado, Littleton
#6 is CA, Castro Valley (Median price $728,267) → Cheaper CMT Silicon Valley
#7 is Colorado, Colorado Springs (Median Price $273,332) → Millennium Generation owner: 86%

7. AMAZON 2^nd HQ competition → Very Steep

8. If Tax Reform passed, Mortgage interest deduction will be decreased sharply

According to ‘Zillow.com’, Mortgage interest deduction tax report will be decreased → by 1/6 level
Current 29.6% → 5.4% (NY State: 76.9% → 19.6% / San Francisco, CA: 98.5% → 58.9% / Boston, MA: 79.2% → 13.8%)
Tax payers will select standard deduction which might be higher than mortgage interest deduction → Trigger more renters than home buyers
In addition, if property tax deduction is deleted → negative effect to future home buyers