Weekly News (January 13, 2021)

This week’s Interest Rate (2nd  Week)

(By Fairway Home Loan)

Prime Rate:3.0% / Ref IR: 0.00- 0.25% 

 2021 Conventional loan limit: Conforming: $548,250/ Conforming high balance: $882,375

Super Vaccine Center at the Citi Field, NY operates

(Korea Daily 1/13)

–    The mayor announced on 1/12 that Flushing Citi Field vaccine canter starts to operate with 24 hour operation from 1/25
–    The center can provide 7000 doses a day.

Rent can be paid by Credit Card in new Jersey

(Korea Times  1/12)

• NJ landlords could be required to accept rent payment via credit card.  State lawmakers passed a bill they hope will help tenants struggling due to the coronavirus pandemic.
• Any transaction fees when paying rent with a credit card would fall on the tenant, the bill states.
• The exception is less than 4 family house when the landlord lives in the complex.
• This bill will be effective until one year after the state emergency expires.

The ban on NY Commercial eviction/foreclosure might be extended till May 

(Korea Daily 1/12)

• The governor Cuomo announced that he will pursue to extend the ban on commercial eviction/foreclosure till 5/1 from current 1/31.
• The news came out 1 week after the ban on residential eviction/foreclosure is extended till 5/1.
• Mom and pop small landlords are complaining that this will make tenants to think they do not need to pay rent.

Lonely at the Top: Tenant in Frank Gehry’s NY Skyscraper has enough room

(WSJ 1/6)

• Lower Manhattan’s most famous rental apartment building has it all.  Stunning views over the city, a spa and swimming pool, a drawing room with grand piano, golf simulators, outdoor deck and even its own elementary schools, but not enough tenants.
• Tenants renewing leases have negotiating power, residents say. Romain Lacombe, a packaging company executive, said the rent for his corner one-bedroom apartment with prime skyline views went down to $3600 from $4900. ( The penthouse rent is $60,000 a month)
• The tower’s struggle reflect a deepening crisis in the Manhattan real-estate market.  The pandemic has led to an exodus of well-heeled young professionals to the suburbs and warmer, cheaper cities, leaving apartment landlords with rising vacancies.  The building’s vacancy rate in 3rd Qt is 26.25%.  Remote work has also hurt the building’s retailers, which used to cater to tourists and office workers in the neighborhood.

Housing Bias warps Investor Decision

(WSJ  1/6 )

• Overinvestment in real estate is a problem for the economy: It saps future output by sucking capital away from more productive uses.  Homeownership bias, meaning the incentive to invest in property rather than other assets, exist in most advanced economies.
• If home owner rents out their property, that income is taxed.  But when they live in it, renting it themselves, it isn’t: Imputed rents aren’t usually taxed. Combined with other tax incentives, the effective subsidy can be huge.

Banks and CDFI started receiving the 2nd PPP applications from 1/11

(Korea Daily   1/12 )

• The priority goes to small business owners who did not apply the 1st
• Those who applied 1st PPP and want to apply the 2nd PPP needs to 25% income reduction in any quarter in 2020, compared to 2019.
• Those who did not apply 1st PPP do not need to show income reduction in 2020.
• Depending on the qualification, the order of process will be determined and SBA also will review any potential fraud case or not.

European Medicines Agency Application for AstraZenaca Conditional Approval 

(Korea Daily  1/12)

• The European Medicines Agency (EMA) announced on the 12th (local time) that it has received an application for conditional marketing approval for a COVID-19 vaccine jointly developed by a multinational pharmaceutical company AstraZeneca and Oxford University in the UK.  The conclusion is expected to come out later this month.
• To date, there are two types of vaccines approved by the EU, manufactured by Pfizer and Moderna. AstraZeneca will also become the third EU vaccine if approved at the end of this month. All three products have received conditional approval.

Others/Tech News : LG will supply “Power Train” parts Apple’s iCAR

 – LG signed up a joint venture with Canada’s Magna International who is the 3rd auto part manufacture worldwide.
–  Power Train is a major part of driverless electric car.
– Apple is planning to complete iCAR in 2024.