Weekly News (August 9, 2023)

Mortgage Interest Rates Review 

(Fairway Home Loan 8/9/2023)

Federal Fund Rate: 5.25% -5.50%        Prime Rate: 8.25%-8.50%

Chief of Police in Palisades Park re-appointed: 팰팍 경찰서장 결국 재임명

(Korea Times  8/8/2023)

• Anthony Espino who was disproved his appointment by the NJ State court, is re-appointed as chief of police by the town council meeting with 4 favors and 2 invalids.
• Before the previous mayor Christopher Chung’s term ended, 3 council members were presented in the council meeting, but 1 gave up the voting, and therefore, they passed Anthony Espino as Chief of Police by 2 favors only. The State court disapprove its validity due to the fact that it requires a half of favors which is 3.
• The Mayor Paul Kim said the politician must show the effort and will to correct the town matters in right way, but they are failing.

“Stay New Jersey” program is certain to stay: “스테이 뉴저지“ 프로그램 영구화 확실시      

(Korea Daily   8/8/23)

• It is certain that “Stay New Jersey” program will begin in Jan 2026 which will deduct the property tax for senior people that they can stay in New Jersey, not move out of the state.
• The program is to deduct 50% of the property tax for the seniors with below $500,000 income and the maximum benefit is $6,500.
• Till 2025, Anchor program will provide mostly $1,750 to the home owners, and $500 to renters.

Outdoor Dining in NYC goes permanent: 옥외 식당 영구화 –한식당들  유지 어려울듯

(Korea Daily  8/9/23)

• NYC council passed the law to allow outdoor dining permanently, which was allowed temporally during the pandemic period.
• However, many Korean restaurant owners are not that excited because they have to remove the outdoor dining facilities, and require to get licenses and have to pay the fees.
• Currently there are 13,164 outdoor dining facilities registered in NYC. But many of them are already removed because they don’t utilize much after the pandemic.
• It is very troublesome to remove the outdoor dining facilities with heating and A/C systems and store them during the winter season.

Apartment Landlords Face Peril As Their Debt Costs Skyrocket: 아파트 건물주 융자비용 급증하며 위험

(WSJ  8/8/23)

• Apartment buildings, long considered a real-estate haven, are emerging as the next major trouble spot in the beleaguered commercial-property world. Investors bid up the prices of multifamily buildings for years, attracted by steadily rising rents and the prospect of outsize returns. Many took on too much debt, expecting they could raise rents fast enough to pay it down.
• The sudden surge in debt costs last year now threatens to wipe out many multifamily owners across the country. Apartment-building values fell 14% for the year ended in June after rising 25% the previous year, according to data company CoStar. That drop is about the same as the fall in office values.

Outstanding multifamily mortgage, quarterly

WeWork Raises Doubt on Survival: “위웍” 회사 생존 미지수 

(WSJ    8/9/23)

• WeWork, once one of the world’s most valuable startups, valued at $47 billion, said excess supply of commercial real estate, greater competition for flexible space and uncertain economic conditions resulted in losses in the second quarter.
• The company’s stock is down more than 95% since its public listing, with an estimated market capitalization of around $450 million as of Tuesday, and based on its share price, SoftBank has lost billions of dollars on its investment in the company.
• Recession fears and tech-industry job cuts have weighed on demand for coworking desks, part of broader turmoil affecting the commercial- real-estate market because of employees’ reluctance to return to the office.

Home Insurers Charge more, Cover Less: 주택보험료 상승에, 수혜 범위는 줄어

(WSJ   7/31/23)

• Home Insurers are insuring less and charging more as they try to claw their way back to profitability after losing money in five of the past six years, analysts and insurance agents say.
• The higher-cost, lower-coverage trend extends well beyond Florida, California and other states prone to hurricanes, floods or wildfires.
• Insured damage in the U.S. from sever storms, wildfires, floods, and other disaster has topped $90B in each of past three years, which is markedly higher than the inflation-adjusted averages for any of the previous four decades, including $54B for the 2010s and $40B for the 2000s.

Home-insurance rate increases since Jan 2022

A Soft landing in Sight For U.S. Economy: 미 경제, 연착륙이 가시적

(WSJ  7/30/23)

• Parts of the economy are cooling, just the Fed would like to see them to combat inflation. Freight railroads, are shipping volume decline. Construction firms are cutting back on equipment purchases. A vending machine company’s customers are negotiating prices down.
• Yet the key to a measured, inflation-busting slowdown that doesn’t sink economy – Soft Landing – lies in whether companies hold on to workers or lay them off.
• They are making a priority of keeping workers. Companies of all sizes are hiring at a slower pace than last year, but still are adding average of 278,000 jobs a month through June.

“SmartConnect” America Launching: 종합 플랫폼 “스마트 아메리카” 미 상륙  

(WSJ   8/9/23)

• SmartFinTech, Inc. is headquartered in Korea, and visioning a information platform which connects people-to-people, business-to-business targeting 2.5M Korean American in U.S.
• The service includes job/employee searching, real estate listing/buying, including apartment rentals, business buy/sale, and other useful general information in U.S. Also the SmartConnect provides online home shopping center.
• SmartConnectAmerica
  – 234 North Central Ave, #100, Hartsdale, NY 10530
  – 917 747 7553
  – nskokimus@gmail.com