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 (47th floor each: 900 Units): 1st Building was built 2012 ~ 2014. 2nd 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 2nd HQ competition → Very Steep

  • 238 proposals from 238 cities (Expected about 100 cities)
  • NYC: 4 places (Midtown West, Financial District, Queens LIC, Brooklyn Triangle)
  • NJ: Newark (Offered $7 Billion tax exemption)
  • Amazon’s Economic Effect for 7 years (2010~2016) in Seattle: $38 Billion
  • Negative side: Housing price / Rent goes hike

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

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