Tax cuts (income or property) not looking likely as NJ revenue misses

From Bloomberg:

Tax-Cut Pledge May Trap Christie as N.J. Revenue Misses

Governor Chris Christie, a Republican who has spent the past four months promising New Jersey income- tax cuts, now confronts the challenge of selling his plan’s feasibility against a backdrop of continuing revenue shortfalls.

April receipts fell 5.3 percent short of budget forecasts, after March collections missed by 2.5 percent, according to statements from Treasurer Andrew Sidamon-Eristoff. So far for the fiscal year that ends in June, the state has brought in $230.3 million, or 1.2 percent, less than projected.

Christie, 49, didn’t remark on the latest figures during two public appearances in Atlantic City and Camden yesterday, when the April data was released. He will continue barnstorming the state with a public forum planned for today in East Hanover. He has regularly pitched the three-year, 10 percent tax cut at such meetings as a key to what he calls the “Jersey Comeback.”

“To back off now would smell of political weakness,” Brigid Harrison, who teaches law and politics at Montclair State University, said yesterday by telephone.

Christie’s $32.1 billion spending plan for fiscal 2013 counts on a 7.3 percent revenue gain, the most since before the recession that began in December 2007. Should revenue miss budgeted amounts for the current year, the state would start the next with less cash than estimated.

New Jersey collected $3.26 billion last month, less than the $3.44 billion forecast. Income taxes trailed estimates by 2.8 percent and corporate levies fell 22 percent under budget, Sidamon-Eristoff said in a statement.

“This is one month’s worth of collections,” said Kevin Roberts, a spokesman for Christie. “We still have two months.”

So far in fiscal 2012, revenue is $500 million, or 2.7 percent, greater than for the first 10 months of the previous year, reflecting economic growth, Roberts said yesterday.

“With revenue projections coming in much lower and the governor’s revenue estimates being ridiculously unreachable,

it would be irresponsible at this time to support any type of tax cut,” Senator Raymond Lesniak, an Elizabeth Democrat, said by telephone yesterday, before the April numbers were released. “I know that other members I’ve spoken to agree.”

Gordon MacInnes, president of New Jersey Public Policy Perspective, a Trenton nonprofit research group that focuses on social and political issues, said this is no time to cut taxes.

“New Jersey already has the third-lowest credit rating in the country, greatly increasing our borrowing costs,” MacInnes, a former Democratic state senator and assemblyman from Morristown, said in a statement. “Our leaders should concentrate first on putting the state’s fiscal house in order, not on politically appealing, but reckless, proposals to cut taxes. This is exactly how we got into this mess.”

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144 Responses to Tax cuts (income or property) not looking likely as NJ revenue misses

  1. grim says:

    From Time:

    Report: Housing Market Recovery Has Officially Begun

    It’s been a rough five and a half years for the American homeowner. Since the housing bubble reached its peak in early 2007, Americans have watched helplessly as $7 trillion in housing wealth evaporated. At many points during this ugly plunge, pundits have erroneously called the “bottom” of the housing market – saying things could finally get no worse. And then they got worse.

    The American public can therefore be forgiven for eyeing the latest round of predictions that the market has turned a corner with skepticism. Of course, the housing market will heal at some point, so perhaps the boy is crying about an actual wolf this time.

    The best reason to shed your hard-won dubiousness is a report issued today by the The Demand Institute, a think tank jointly operated by the well-respected and non-partisan research organizations The Conference Board and Nielsen. The fifty-page study is definitively labeling 2012 the year of the housing bottom. It says:

    “The double-digit increases in U.S. housing prices over the first half of the past decade proved unsustainable. But the freefall is over. The point has been reached where housing prices will start to climb, albeit at single-digit rates in most markets over the next five years.”

    The report argues that the recovery will come in two stages. The first will be driven by rental demand. Over the past several years plummeting home prices have been coupled with rising rents, and this dynamic has made landlording very profitable. This is evidenced by the recent rebound of the apartment-building business. According to the report, “The only segment of the home building sector now showing clear signs of recovery is multifamily housing,” noting that housing starts for multi-family units have increased 54 percent in 2011 over the previous year.

    The Demand Institute also believes the dynamics buoying the multifamily market — rising rents, low interest rates, and cheap real estate — are starting to boost the single-family housing sector as well: “Investors attracted by high yields are buying up single-family properties that can generate rental income.”

    The second stage of the recovery will occur after this investor intervention causes prices to stabilize. Price stabilization is crucial for banks to loosen their stingy lending standards. When home prices are falling, it’s bad business to issue mortgages to all but the most credit-worthy borrowers. But in an environment of even slowly appreciating real estate, banks can afford to offer more generous terms.

    Perhaps most crucial to The Demand Institute’s vision for a recovering housing market is evidence that Americans are still strongly attracted to the idea of homeownership. “The American Dream has not gone away,” says Keely, adding:

    “The majority of Americans think that owning a home is a good investment; the majority of people who plan to move in the next six years plan to buy a house even if they’re not currently homeowners. There are several pieces of evidence that lead us to believe that we’ll see a rise back to home ownership levels that we saw in the mid ’90s and early 2000s.”

  2. grim says:

    From the WSJ:

    Housing’s Future: Renting and Downsizing

    Be it ever so humble, there’s no place like a rented apartment.

    That may be the mantra of U.S. households for the next three years, according to a new study released Tuesday by the Demand Institute division of the U.S. Conference Board. Most Americans still hope to own a home, the study found — but that home will be smaller than the MacMansions of the housing boom.

    Housing and the related mortgage industry helped to tip the U.S. into the Great Recession. Data suggest the sector is bottoming out, but its recovery will be unlike that of past business cycles, according to the Demand Institute’s report, entitled “The Shifting Nature of U.S. Housing Demand.”

    “Many [buyers] will scale back their housing aspirations,” according to the report, which projected that the average size of a newly built home will shrink to 2,150 square feet by 2015 from a housing-boom high of 2,500 square feet. The downsizing will bring home sizes back to mid-1990s levels.

    Less space will change spending patterns. “Almost every consumer-facing industry will feel this effect as consumers adapt” to new housing choices, the report said.

  3. Mike says:

    Good Morning New Jersey

  4. Confused in NJ says:

    CAP Property Taxes at $2,000 per year & problem solved.

  5. Mikeinwaiting says:

    Confused for Governor !

  6. Neanderthal Economist says:

    Confused, what if you own 10 acre mansion? Still $2k?

  7. None of these d!cks says a word about cutting spending. They really do believe our money is their money.

    Nothing will change until we line these bastards up against a wall and start capping them.

  8. The Original NJ ExPat says:

    I find the mansions in Newport, RI fascinating. The biggest takeaway for me is that these mansions were summer homes to the rich until labor became so expensive that it was no longer affordable for even the uber-wealthy to have a staff of 80 just to run your 2nd house. They abandoned these over-sized monstrosities and downsized. Rising Taxes and Oil prices will precipitate a similar square footage contraction in our lifetime. I think I heard the other day that in the US we have 800 cars for every 1000 people. In China it’s 65 cars per 1000 people and in India it’s 35 cars per 1000 people. How do you think that’s going to turn out when those mopeds get traded in for vehicles with higher capacity than one passenger and one chicken?

  9. The Original NJ ExPat says:

    [7] Meat – except for Ron Paul. I can’t wait for the mainstream sheeple to realize we have a spending problem, not a revenue problem.

    None of these d!cks says a word about cutting spending. They really do believe our money is their money.

  10. The Original NJ ExPat says:

    [7] I guess you were talking NJ and the main article.

  11. Brian says:

    Tax cuts (income or property) not looking likely as NJ revenue misses

    Fine. Cut services to the bone then. This is really the last best chance to do it. You can point to Greece as an example of what might happen if we don’t cut spending now. The longer NJ government dodges the issue of spending cuts, the more people who support them will move out. They you’re left with a socialist electorate that expects handouts and will continue to vote themselves a raise until the whole system collapses in on itself.

    Cut spending, take care of the debt obligations and thereby raise our credit rating. That will attract businesses and people back to NJ and the revenue problem will take care of itself. Then you can lower taxes and finally the ball will be rolling in the other direction.

    Is there no politician with the fortitude to take these drastic steps?

  12. No. The entitlement class now dominates NJ electoral politics. Christie has the right idea, but his follow-through is 50% at best.

    “Is there no politician with the fortitude to take these drastic steps?”

  13. freedy says:

    NJ is so over . Just walk the streets . It’s a welfare state and has been for years.
    No pol will do anything, all they do is protect their exit strategy

  14. The Original NJ ExPat says:

    9% Sales Tax plus gasoline more expensive than NY. Coming to blue ribbony town near you.

  15. Brian says:

    JJ you buying any NJ bonds? Since we have such a crappy credit rating, they must be pretty junky.

  16. AG says:

    Nomadic activity like the Lenape Indians is our only hope. I’ll be on the river in my dugout searching for edibles.

  17. gary says:

    “New Jersey already has the third-lowest credit rating in the country, greatly increasing our borrowing costs,” MacInnes, a former Democratic state senator and assemblyman from Morristown, said in a statement. “Our leaders should concentrate first on putting the state’s fiscal house in order, not on politically appealing, but reckless, proposals to cut taxes. This is exactly how we got into this mess.”

    10% of the state public workforce needs to be downsized and the remaining workers need to contiribute a share of the their gross towards their benefits. A hiring freeze needs to be enacted and/or any new hires should be on a contractual basis only. Any questions?

  18. gary says:

    “The double-digit increases in U.S. housing prices over the first half of the past decade proved unsustainable. But the freefall is over. The point has been reached where housing prices will start to climb, albeit at single-digit rates in most markets over the next five years.”

    Tell us about it again next year… just like we heard it last year and the previous year. We’re in the top of the sixth inning, my naive little muppet.

  19. 3B says:

    I remember the days when NJ was AAA/AAA by both. Was not that long ago.

  20. 3B says:

    #1 NJ property taxes.

  21. Mike says:

    Brian 15 I don’t think AA3 is crappy

  22. Brian says:

    It is relative to other borrowers though isn’t it?

    “New Jersey already has the third-lowest credit rating in the country, greatly increasing our borrowing costs,” MacInnes, a former Democratic state senator and assemblyman from Morristown, said in a statement.

    22.Mike says:
    May 16, 2012 at 8:46 am
    Brian 15 I don’t think AA3 is crappy

  23. 3B says:

    #15 Brian: JJ lives in NY, there is no reason he should be buying out of state bonds due to tax considerations, unless they were really”cheap” to offset tax considerations. And even than it does not make sense long term.

  24. Brian says:

    Could be worse I guess. At least we’re not California.

    http://www.huffingtonpost.com/2011/08/16/state-credit-ratings-acro_n_928445.html

  25. I definitely savored every little bit of it and I have you bookmarked to check out new stuff you post.

  26. Juice Box says:

    My buddy over at FB says they are setting up for a monster IPO party at their Menlo Park headquarters.

    California is expecting about 2 Billion in income taxes alone.

    http://www.baltimoresun.com/news/nation-world/sns-rt-us-economy-california-facebookbre84e1b7-20120515,0,1209050.story

  27. seif says:

    anecdotal: properties that I watch are going under contract like wildfire.

    3B – the other day you mentioned listed vs. under contract…where can i find those numbers?

  28. 30 year realtor says:

    It’s a big country. Tough to make national predictions about housing. Bottoms in some areas will come before bottoms in others.

    Our area? No bottom yet. Transactions are up but up is a relative term. Kind of like the difference between drowning in 5 feet of water instead of 10.

  29. gary says:

    seif [29],

    What’s the reason’s in your opinion? Price drop? Pant up demand? Consumer confidence? And what price range is this activity? Didn’t you mention you were looking somewhere in the 700K – 750K range.

  30. JJ says:

    I have mainly NY bonds. When it was December 2009 till Feb 2001 occasionally I bought some Virgin Island, Guam or Puerto Rico Bonds but only in cases where yields were like 6.5=7% tax free. Other risk is not worth it.

    Remember NYS GO bonds are Triple AAA. Higher rated than US Treasuries. At state level Cuomo is a very smart man who runs a tight ship. However at Nassau County, Suffolk County, Shea Stadium, Yankeee Stadium, Non-profit Nursing homes, Colleges, etc. that all can be NY Muni bonds Cuomo does not give a poop about. They can default. Not saying they will . But at state level NYS is way better than NJ. If I did live in NJ back in late 2010 or early 2011 when tax free yields hit 7% from Whitney panic I would have at bought a few hundred grand worth. That risk has lots of reward with taxes sure to rise in 2013 tax free 7% will be like 12% taxable. Locking that in and if you believe Chrisite can fix budget issues could leave you in catbird seat.

    Munis, Junk, MBS, Treasuries Investment Grade bonds and CDs are all at all time lows. Not a place for new money. Bits and pieces of special situations maybe but honestly I had 10K to invest in a bond recently and it was extremely difficult to even place 10K. Back in January 2011 I could have bought millions of dollars of A rated bonds in excess of 5.5% yield. Today I am lucky to find any yielding over 4%. Crazy.

    3B says:
    May 16, 2012 at 8:50 am

    #15 Brian: JJ lives in NY, there is no reason he should be buying out of state bonds due to tax considerations, unless they were really”cheap” to offset tax considerations. And even than it does not make sense long term.

  31. xmonger says:

    #18. Gary, you are wrong. My ex-realtor just sent out a mass email stating that as the temperature climbs this season, so will NJ real estate prices.

    It’s Finally Getting Hot

    As the temperature rises, so does the real estate market. For the first time in a very long time, positive headlines dominate real estate news sites. Those of us at Coldwell Banker Residential Brokerage are excited for our clients and customers who are making their home buying and selling goals a reality.

    With consumer confidence rising, low interest rates, rising rents, and still modest inventory levels, the general consensus with real estate professionals and industry watchers is that this level of activity should continue.

    More good news was announced last month when the Federal Housing Finance Agency issued new guidance requiring servicers of Fannie Mae and Freddie Mac loans to speed responses to short sale requests. The guidelines will help expedite the short sale process and essentially give an extra boost to the housing market.

    Regionally, prices remain somewhat steady. However it is important to note that in some communities, prices are starting to rise along with the temperature. Look to the graph to see what trends are taking place in the communities that most interest you. Real estate is very local and what is reported regionally can vary town-by-town. To know exactly what is happening in your marketplace, contact a Coldwell Banker Residential Brokerage sales professional who will walk you through the graph and share additional insights about your market.

    Overall, this activity indicates that buyers are prevalent and are acting on those opportunities where they perceive value. Additionally, the homes that are in good condition are making the most impression. The message to home sellers is very clear; price your home competitively, follow your Coldwell Banker Residential Brokerage professional’s marketing plan, and make those improvements to help your home shine.

    For those looking to purchase a home, it is important to come prepared with solid financing, be ready to make a purchase decision and most importantly, be honest about the price. For those markets that are moving quickly, a low, unrealistic offer could result in a missed opportunity. Again, contact a Coldwell Banker Residential Brokerage sales professional who can help you find a property, and assist you throughout the negotiation process.

    We at Coldwell Banker Residential Brokerage are very excited by the spring activity we’ve seen so far, and our expectation is that it will continue to heat up.

  32. gary says:

    30 year realtor,

    Once again, calling the balls and strikes without hesitation!! :)

  33. Libtard in Union says:

    Facebook IPO:

    If I had the cajones (which I admittedly do not), I would buy a ton at the open and would hold it until right before their first earnings release. Then I would start shorting it about a week before the IPO holding period ends.

    This is pure speculation, but I guarantee Facebooks P/E will reach well into the 100s in the first week of trading.

    Due your own research dolts and never jump in blind.

  34. gary says:

    Brian,

    Last night, I successfully completed both a Linux and Windows server frontend to backend application installation and sent screen shots to the company interviewing me. The Senior Engineer gave me a thumbs up. Now, the waiting begins to see if I landed the gig. Either way, the stretch felt good but I’m pushing the recruiter to sell me!!

  35. seif says:

    i agree with 30 yr. I think it is a head fake, some people don’t bathe in all the gloom and data like we do and they still feel like houses are an equity that can run away from them.

    – these are ALL in the 650K-850K range.
    – they are all set to close btwn yesterday and end of July.
    – all in Tenafly, Norwood, Closter, Old Tappan

    I will post them when I see prices they close at. A $599K listing closed at $525K beginning of the month.

  36. gary says:

    xmonger [33],

    As the temperature rises, so does the real estate market.

    I guess I need to wait until the winter and pray for an Arctic front to plunge down. ;)

  37. gary says:

    seif [37],

    Thanks for the info. I’m going to focus on the Pascack region for now and see how it goes. It’s the most convenient area for the family.

  38. xmonger says:

    #38. I love how these clowns can continue to say anything and get away with it.

  39. Juice Box says:

    Tard – FB not a buy and hold stock, over the next 3 years they will have a very tough time keeping a P/E above 100. At the open FB will be up 25-35% and they will declare victory. Good for those that got an allotment bad for anyone else.

  40. seif says:

    something is in the air…I actually got cold called by a RE broker yesterday! She said she had my name down as ‘interested in purchasing a home’ and I explained to her that she must have had that from 3 years ago. People are buying, properties are closing and brokers are busting out all the old leads!

  41. Brian says:

    Cool. Where do they have you installing the servers? Are they virtual servers in a cloud environment?

    36.gary says:
    May 16, 2012 at 9:37 am
    Brian,

    Last night, I successfully completed both a Linux and Windows server frontend to backend application installation and sent screen shots to the company interviewing me. The Senior Engineer gave me a thumbs up. Now, the waiting begins to see if I landed the gig. Either way, the stretch felt good but I’m pushing the recruiter to sell me!!

  42. Libtard in Union says:

    Interesting chart pron on government spending from Jamil’s favorite source:

    http://www.npr.org/blogs/money/2012/05/14/152671813/50-years-of-government-spending-in-1-graph

  43. JJ says:

    Brian if you want to trade you have to be greedy when others are fearful. Morning after Lehman collapse I bought this bonds at PAR. I was buying like crazy that day in munis as Margin calls ment people were selling everything with no regard to value.

    So I bought this Bond late 2008 AA2 rated high investment grade. Do the math. 7.75 interest tax free from 1998 until 2023 with only cost $7.95 commission to buy and no commission if held to maturity to sell. Odd moments, Russian bond Crisis, Rapid Rise in Rates in 1994, 9/11, Lehman Collaspe, Bond insurer collaspe, Whiteney on 60 minutes. You have to go in balls to wall, margin if you have to, highest coupon possible, long term and try to get close to par. Think about you would have blown the doors off housing f

    NEW YORK N Y G.O. SERIAL BDS SER. 1990 07.75000% 08/15/2023 I

  44. Libtard in Union says:

    JB…I agree. Though the sheep will probably make it a momentum stock like they did with Zynga and Netflix.

  45. gary says:

    Brian [43],

    They set up the servers on a rack server hosting site and gave me the root ID and passwords. That was it. The rest was up to me. I had to install and configure the backend database and frontend app on both servers and then open the ports to hit the links depending on the install method. I learned a lot but muscled through it. Like I was saying yesterday, it’s a far cry from being a house tour guide, isn’t it? Troubleshooting a 32/64 bit stack overflow issue vs. “this is the kitchen.” ;) lol!!

  46. seif says:

    Lib – what advice/metrics would you give me on buying a SFH to rent out? What pitfalls or mistakes to look for? Thx.

  47. 3B says:

    #42 and brokers are busting out all the old leads!

    Could be because they don’t have any new leads. If there were tons of activity, seems to me no need to be dusting off old leads, just saying.

    Disclaimer: I am buying and I still think prices are going down.

  48. 30 year realtor says:

    #48 self – I know you didn’t ask me, but…Why would you buy a single to rent out instead of a multi? If you have 2 units and one doesn’t pay, only 50% of your tenants are in default. More units spreads the risk on rent collection and vacancy. I would advise you to buy something with multiple units in towns like Lodi, Garfield, Ridgefield Park, etc.

  49. gary says:

    3B [49],

    Go figure, right? Who would’ve known that one actually needs to have ajob, assets and an actual credit score to buy a house.

  50. Comrade Nom Deplume says:

    Just anecdotal from driving around: Seems like homes are closing in the Brig. Lot fewer signs out, and more of them with UC signs on them.

    All except for the dutch colonial behind me. Still languishing near as I can tell.

  51. 3B says:

    #39 gary: I will be in the same region, we could run into each other!!! Throwing my bid in at the end of the month, we will see what happens. Oh and I still think prices are going down.

  52. Confused in NJ says:

    6. Yes, Property Taxes which allow the Government to seize your home are inherently evil and of questionable constitutionality. Income taxes are fairer.

  53. Comrade Nom Deplume says:

    Hmmmmm. . . .

    GM reports that it is pulling its Facebook ads. A 10MM hit to FB.

    If I put on my tinfoil hat, I could infer that GM, a government controlled entity, did that to punish FB for Saverin.

    Tinfoil hat off–I think that the best money in FB is made just after the IPO run up. I remember the dot-com bubble.

  54. 3B says:

    #51 gary Amazing concept that one would need those things to buy a house. And I just don’t buy the mini-hype that the real estate market is closing. i still see lots of inventory, and houses still coming on the market. And we are probably three quarters through the Spring selling season. Old Tappan for instance has around 80 single family homes for sale that is a lot of inventory for a small town.

    Oh and I still think prices are going down, even though I am buying.

  55. gary says:

    3B,

    I said it before, you and I need to attack a specific new listing with successive lowballs!! :)

  56. Comrade Nom Deplume says:

    [44] libtard

    Meh. If the chart could show annual changes that would get me stiff.

  57. Anon E. Moose says:

    Gary [38];

    I guess I need to wait until the winter and pray for an Arctic front to plunge down. ;)

    Gary, you laugh, but I gave a seller my last/best/final with a 48-hour fuse before Christmas; he countered $20k higher, and I told him to go scratch. Between Christmas and New Year’s the listing agent came crawling back looking for my price. I should have squeezed him for more, but said yes. The deal fell through anyway when he got cold feet after the inspection and I wasn’t willing to take the dump with its numerous flaws.

    So yes, like resolutions to start exercising, the end of the year is when many a seller find religion (or sense); and like new years’ resolutions they fade before February.

  58. seif says:

    50 – i saw a local “cheap” SFH unit that appears in good shape and rent would likely cover all costs and then some. no decent 2-family in my range, where I am looking.

  59. 3B says:

    #57 gary: I think the house I am looking at may be more modest than what you might be interested in. I thought we might take turns pulling the pony tails through the baseball caps, after we go get a latte at Starbucks.

  60. Anon E. Moose says:

    3B [39];

    I am buying and I still think prices are going down.

    Best we can do is pay for the softest, velvety-est noose on the market. It’s not like we’ll be able to buy anything with the money later.

  61. gary says:

    Moose [59],

    As the saying goes, be courteous of those on the way up, because you’re gonna meet them on the way down. The whole industry acted like a bunch of s.luts last decade, so now we’ll be obliged to treat them as such.

  62. Brian says:

    Just curious, do you know if they were using Dell, HP, Cisco or IBM hardware? And were the servers in house or did they use a 3rd party hosting site?

    Sorry to pepper you with questions about it. I’m just always trying to spot trends in the industry. I think many companies, when they start spending money on infrastructure again, will be looking to the cloud. Physical servers will be rare and most will be virtualized on a cloud if they aren’t mostly already. Either using external vendors or in-house vcloud.

    Anyway yeah it can be cool. When you do something successfully there is a bit of a high associated with understanding it and completing the project successfully. Probably on a lesser scale it’s like completing a sale or trading a stock or something. Maybe RE agents are always chasing the high of closing the deal eh :P

    47.gary says:
    May 16, 2012 at 10:04 am
    Brian [43],

    They set up the servers on a rack server hosting site and gave me the root ID and passwords. That was it. The rest was up to me. I had to install and configure the backend database and frontend app on both servers and then open the ports to hit the links depending on the install method. I learned a lot but muscled through it. Like I was saying yesterday, it’s a far cry from being a house tour guide, isn’t it? Troubleshooting a 32/64 bit stack overflow issue vs. “this is the kitchen.” ;) lol!!

  63. gary says:

    3B [61],

    You need the following requisites: hair with some highlights, a Red Sox cap, a puggle and a summer rental at LBI.

  64. gary says:

    Brian [64],

    It was a 3rd party hosting site and I’ll have to check on the hardware. I was too busy under the hood to notice the framework. lol!! I’ll let you know, though.

  65. 3B says:

    #62 Anon: Agreed.

  66. 3B says:

    #65 gary: maybe we can hide behind trees and soak them with super soakers!!!

  67. gary says:

    3B [68],

    Super Soakers?? I grew up in Jersey City; we had hollowed out sode cans duct taped together with rocks stuffed in one end and lighter fluid in the other. You sure that’ll let me move there? ;) lol!

  68. seif says:

    click on it to make it bigger

  69. gary says:

    click on it to make it bigger

    Enter JJ in 3… 2… 1…

  70. Libtard in Union says:

    Nom…too funny.

    Seif…30 year is correct. Multi is the only route to go. When the housing market improves (and if, to please the doomers), you don’t want to be renting out a SFH. Seriously. Ten years ago, I didn’t know of a single person renting an SFH outside of a townhome/condo situation and even in those cases, the owner probably had multiple units.

    Don’t become a landlord under the expectation that it will make you money. Become a landlord because it will save you money. If your families AGI is over 200K, you will need every legal tax break you can find. Especially with AMT knocking on your door. Once you buy that new home, you will realize how little is deductible, hence setting up your own rental LLC is the pro move.

    Buying advice and I’m assuming you are not talking about section 8 housing. Buy near a train station in a town that has good schools if the multi you plan to purchase has 3 or more bedrooms. Location is everything in rental real estate. Invest in washer/dryer hookups or some other amenity that makes your place better than every other POS slum house. We have a large screened-in gazebo in our backyard with ceiling fan and electricity as well as a nice wooden swing set. All of our tenants have had young kids who I’m sure went gaga for the swing-set convincing parents to overpay for the rental. The moms would go gaga over the fenced in backyard and the 36 inch stove and stainless appliances. Make sure there is adequate parking (two spots per unit that don’t require). Every time something breaks, spend the money learning how to fix it yourself rather than bringing in a handy man. You’ll pay much less for obtaining the tools to do the repairs yourself, rather than paying for the labor of some old European or Mexican dude. Learn how to replace screens! Get good at painting and never ever think about putting down carpeting. When purchasing things, get the cheapest model of the best quality brand. This is as true for toilets as it is for refrigerators. Be picky about your tenants, even if it means lowering your rents by $100 a month. What you lose over a year is about half of one months rent, which is way less than you’ll lose with a one month vacancy that often occurs every time a unit turns over. Give another $100 break if the tenant is willing to sign a multi-year lease. If they break the lease, you keep the difference in their security deposit. Form an LLC yourself (no need for a lawyer). Use a realtor to rent the place out. It’s a no-brainer as it costs you nothing but a lot less aggravation as the renter pays their commission.

    More than anything, live near the rental since you will need to go over there frequently for lame repairs. Try to find handy tenants. I bartered lower rent for my tenant of eight years in exchange for him taking care of the small stuff himself. Don’t be cheap either. Treat your tenants well and they will stay for a long time and will pay on time. Nickel and dime them and what you think you’re saving will be lost many times over to cleaning and painting bills every six months. You take care of them and they take care of you. Remember, the goal is to have them pay for the mortgage, taxes, hazard insurance and just enough extra to cover the occasional need for a major repair item such as the roof, boiler or driveway resurfacing. My place currently spins off $900 a month in savings which I fully expect half will continue to be reinvested into the multi. In 18 years, the mortgage will be fully paid off (hopefully 15 years if I can do this final refi) and I’ll sell the place for whatever it’s worth. Not bad for a place I’ve sunk about 125K into upgrades/repairs, lost another 80K in appraised value and that I got to live in rent free for 8 years with the upstairs tenant paying for two thirds of the mortgage and taxes combined. If the place is worth anything near what I paid for it, it will have been a pretty good investment when you factor in the tax breaks which are immeasurable.

    I hope this helps. Really, if you are not handy, don’t do it! Best bet is to do what we did and buy a multi for your first home. This will help you when you ultimately buy your REAL home. Starter homes are money suckers as you learn on the job. Might as well have tenants pay for much of your mistakes.

  71. NJCoast says:

    Nom,
    If you like gelato check out Capogiro’s at Bovella’s bakery in the Brig. Blue ribbon for sure. One of the few places you can get it outside of Philly.

  72. seif says:

    thanks. appreciate it. i will adjust my search, outlook and expectations accordingly.

  73. Libtard in Union says:

    Seif,

    That chart you linked to is the worst example I’ve ever seen of someone trying to use graphic design skills to draw a picture of what the data is trying to tell.

    What a mess.

  74. Libtard in Union says:

    Seif,

    The exact details of my diatribe on owning investment real estate aren’t nearly as important as getting the gist of it all. If you can relate to the things I pointed out, then it makes sense. If you think you can pay someone who does get the gist of it, then you are better off not landlording. Just saying.

  75. seif says:

    i follow you. makes sense.

  76. Libtard in Union says:

    Cool!

  77. Comrade Nom Deplume says:

    My sister and bil are buying the house across the street from theirs. Near as I can figure, they are going to use it to house foreign exchange students. The stipend for each is $700 per month. Depending on bathrooms, they can easily house four.

    Not sure it is the smartest move. You lose 2-3 months of rental and you have to monitor constantly.

    OTOH, its $2800 a month that likely won’t show up anywwhere. And because it is near them, I suspect they will “move” into it, remodel, and flip it in a couple of years.

  78. seif (48)-

    Sheep, the fact that you are asking this question means that you shouldn’t touch investment properties.

    Why don’t you go read War and Peace and summarize it here for us?

    “what advice/metrics would you give me on buying a SFH to rent out? What pitfalls or mistakes to look for? Thx.”

  79. I believe I can fly. What pitfalls would there be in my taking a trip to New Paltz and hopping off one of the ‘Gunks using a bedsheet as my wings?

  80. seif says:

    81 – I love you too.

  81. Libtard in Union says:

    Nom,

    My step brother (a coach at OSU) owns four rental properties in Columbus. He converted his garage into a repair shop that would make Norm (Yankee Workshop) jealous. He is doing very well. As I said before, it’s all about location.

  82. Comrade Nom Deplume says:

    [84] libtard,

    Nice. Norm is a fellow UMass alum. And that is an area I have been thinking about for housing. My problem is distance. Its too far away for me to maintain.

  83. Brian says:

    Two Shareholders Sue J.P. Morgan Over Trading Losses .

    http://online.wsj.com/article/SB10001424052702303360504577407970358475652.html

  84. Comrade Nom Deplume says:

    [80] redux,

    Apparently, there was a bidding war over this well kept but really outdated 2 bed 1 bath 6 room rambler in Arlington, Ma. If my info is correct, they paid well over the asking. Sure hope they know what they are doing.

  85. Juice Box says:

    More Dump for the Pump

    Strong demand has allowed several early investors in Facebook to add more shares to the company’s pending initial public offering, bringing the total value of the IPO to about $16 billion.
    In a filing with the Securities and Exchange Commission on Wednesday morning, Facebook FB 0.00% added about 83.8 million shares to its initial public offering, which is expected to price later in the week. The shares will be sold by selling shareholders; the company maintained its plan to sell 180 million shares for its own coffers.

    The increased share count comes at a time when some questions have emerged about the strength of the company’s advertising business, which accounts for more than 80% of its revenue base. Many of Facebook’s users are shifting to apps on mobile devices, where the company has so far failed to generate any revenue.

    http://www.marketwatch.com/story/facebook-insiders-add-shares-to-boost-ipo-2012-05-16

  86. O MC says:

    Xmonger (33),

    That email you got is boiler plate for those who recently signed in at an open house.

    I got mine at 1024 AM yesterday. What time was yours sent/rcvd?

    OMC

  87. Brian says:

    Starting to feel like blogging doomers actually have a positive role in this world. They amplify the fear that creates unique buying opportunities.

    45.JJ says:
    May 16, 2012 at 9:58 am
    Brian if you want to trade you have to be greedy when others are fearful. Morning after Lehman collapse I bought this bonds at PAR. I was buying like crazy that day in munis as Margin calls ment people were selling everything with no regard to value.

    So I bought this Bond late 2008 AA2 rated high investment grade. Do the math. 7.75 interest tax free from 1998 until 2023 with only cost $7.95 commission to buy and no commission if held to maturity to sell. Odd moments, Russian bond Crisis, Rapid Rise in Rates in 1994, 9/11, Lehman Collaspe, Bond insurer collaspe, Whiteney on 60 minutes. You have to go in balls to wall, margin if you have to, highest coupon possible, long term and try to get close to par. Think about you would have blown the doors off housing f

    NEW YORK N Y G.O. SERIAL BDS SER. 1990 07.75000% 08/15/2023 I

  88. O MC says:

    Comrade Nom Deplume (52),

    Not true in re Bridgewater. I see plenty of signs, no removals and those I know w/ homes there are getting the local mailers showing price reductions and extended days on market numbers. Also noticed re-listings of properties de-listed through the last winter.

    OMC

  89. Sheep, I don’t love you. I think you suck.

  90. JJ says:

    But is he a spitter?

    New Improved Meat says:
    May 16, 2012 at 12:54 pm

    Sheep, I don’t love you. I think you suck.

  91. chicagofinance says:

    I have no opinion on FB…really there are many cons and pros……

    Just stating a fact……forget about P/E; price talk is based around P/S (i.e. S = sales)…..on a P/S basis, Google is 5x and on a P/S basis FB is 27x….at it is going to IPO as a mega-cap at $100B+

    Note, FB is unshortable….

    Reiterating, that I have no opinion and you must perform your own research and cannot rely on any of the above information to make an investment decision.

    Juice Box says:
    May 16, 2012 at 9:51 am
    Tard – FB not a buy and hold stock, over the next 3 years they will have a very tough time keeping a P/E above 100. At the open FB will be up 25-35% and they will declare victory. Good for those that got an allotment bad for anyone else.

  92. daddyo says:

    I can confirm Nom’s Brig update, houses are definitely moving if priced right. The dogs that are overpriced are still sitting though.

    Best gelato in town is The Chocolate Bar, love that place.

    And to the Frank looking for town suggestions, I would mention that New Providence definitely lacks diversity unless you are an Italian Catholic. Great town, I wanted to move there, but my jewish wife said no way.

    I would look at Madison, Westfield, Berkeley Heights (slightly more diverse than NP), and Cranford.

  93. seif says:

    92 – Awwww…you don’t think I suck. I mean, I might…but you don’t know me well enough to make that claim. You likely think you suck…and that could be why you are so angry with everything/everyone.

    I send you my love:
    http://www.youtube.com/watch?v=Jap3QS9Z8aY&feature=related

    JJ – do to a low-sodium lifestyle I would have to be a spitter.

  94. Jill says:

    Gary #39: As 3b can tell you, I’m sort of the resident expert on Westwood, Hillsdale, and WT. Ask me anything. Maybe I’ll have a deck on my house*** by the time you all close and we can have a GTG. We like Sam Adams Summer Ale.

    *** Looking for a good contractor to design/build one and also do some stuff inside the house — replace interior doors, patch some plaster, take out old toilet and vanity and install new vanity and reinstall toilet, retile bathroom floor, etc. Anyone know one who’s reliable and looking for work?

  95. gary says:

    Jill [97],

    Thank you! I am familiar with the area as I had relatives in Westwood and River Vale for years but I’ll always ask questions. :)

  96. reinvestor101 says:

    Damn liberal/leftist pantywaists in Greece are mucking up my damn stock portfolio. Someone needs to shutdown this damn bank run and force them to redeposit the damn money they took out—by gunpoint if they have to. Yeah, that’s right —walk into the damn bank with a gun and force anyone withdrawing to put the damn money back in. If this shlt keeps up, the whole damn system will collapse because stinking liberals want to borrow, spend and not pay their damn bills.

  97. Comrade Nom Deplume says:

    [95] daddyo

    Second on the chocolate bar. My wife and girls live there.

  98. Brian says:

    “We like Sam Adams Summer Ale”

    Try the Sam Adams Alpine Spring. Not a bad warm weather drinking beer.

  99. seif says:

    96

    do = due

  100. Painhrtz - I ain't dead yet says:

    Jill i know a jack of all trades but he is semi retired and is usually pretty booked with all the work he can handle. Plus he is a perfectionist and a bit of a pain in the a$$ he will argue with you on your decisions. Father of a friend he was going to do our doors and molding but we got sticker shock luckily as we mulled it over wife lost her job and money went to other things. So I did myself instead. He does great work though. he is in bloomingdale so not too far away, get my email from grim if you want me to ask for you.

  101. Juice Box says:

    Chi – not having an opinion, are you telling your clients that?

    I say you are chicken shart.

  102. JJ says:

    Jill has an unemployed husband sitting at home wonder what his rate is for home improvements? People pay good money to do simple tasks around house.

    Painhrtz – I ain’t dead yet says:
    May 16, 2012 at 1:39 pm

    Jill i know a jack of all trades but he is semi retired and is usually pretty booked with all the work he can handle. Plus he is a perfectionist and a bit of a pain in the a$$ he will argue with you on your decisions. Father of a friend he was going to do our doors and molding but we got sticker shock luckily as we mulled it over wife lost her job and money went to other things. So I did myself instead. He does great work though. he is in bloomingdale so not too far away, get my email from grim if you want me to ask for you.

  103. JJ says:

    Chifi, not trueNote, FB is unshortable….Website in England that lets you bet on all types of events is taking bets on FB stock during lock up period. There is just no options or stock out there to make your affermintaive determination.

  104. JJ says:

    Brian we need QE3, ten year needs to be at 1.4%. Lets start refinancing all over again and get the last few widows and orphans with money in savings accounts and CD to start junk bond trading. I need someone to unload my crap too.

  105. xolepa says:

    Libtard,
    Go one step further and learn how to install boilers. I learned from my father and just plain old common sense. And read up alot. My father wasn’t a plumber and I’m not, either. Just have an MBA. I have installed now 3 new boiler systems. 2 rental. 1 vacation. Also, for heating installs, you don’t have to be certified unless drinking water comes into play.

    I am also starting to get itchy and am thinking of buying multi in the Hunterdon, Warren county areas. 2 families don’t provide enough cash flow. 4 families are good because they finance under Freddie/Fannie, but in NJ the property has to be inspected by DCA every five years. A minor hassle if you keep up the place and know how to talk to these people.
    The 4 family, after PITI provides clear cash flow > 2k monthly

  106. Comrade Nom Deplume says:

    [101] brian

    Not a big fan of either of those Sams. In fact, I am almost solely a Sam light drinker now. Damn good light beer.

  107. Anon E. Moose says:

    RE101 [99];

    Say it with me: AR-GEN-TINA! AR-GEN-TINA! AR-GEN-TINA!…

  108. Anon E. Moose says:

    JJ [108];

    Brian we need QE3, ten year needs to be at 1.4%.

    Ladies and Gentlemen of the jury, with that the Housing Bears rest their case for buying now.

  109. Anon E. Moose says:

    Redux [112; no, not 111, but 112];

    AR-GEN-TINA! AR-GEN-TINA! AR-GEN-TINA!…

  110. JJ says:

    I used to work as a plumbers assistant sometimes when I was 17. Mostly the guy who held flashlight, carried other side of hot water heater, get tools from truck for gas burners. Sometimes sit in truck if double parked. Worst job ever was a hot water heater on middle neck road in Great Neck at the Baskin Robbins. Apparantly garbage pick up was expensive for commerical properties and was mob controlled. You had to use local wise guy as no one else would bid. Well the old guy who owned place had an unfinished basement with just a boiler and a slop sink OMG for last three years rather than pay for garbage pick up he threw it down steps into basement. The rats and roaches were skyhigh and you had to wad through tons of nasty empty icecream cartons are rotten. Disgusting nasty work. Pays well. Plus all that absestos stuff. I say in the top three of bad jobs. Although emptying tampon dispensers in public bathrooms and killing lab animials and redbagging them were also pretty bad. Maybe I can come over and help you, I just need a picture of your basement first. The rats should be smaller than cats as that is where I draw the line.
    xolepa says:
    May 16, 2012 at 2:28 pm

    Libtard,
    Go one step further and learn how to install boilers. I learned from my father and just plain old common sense. And read up alot. My father wasn’t a plumber and I’m not, either. Just have an MBA. I have installed now 3 new boiler systems. 2 rental. 1 vacation. Also, for heating installs, you don’t have to be certified unless drinking water comes into play.

    I am also starting to get itchy and am thinking of buying multi in the Hunterdon, Warren county areas. 2 families don’t provide enough cash flow. 4 families are good because they finance under Freddie/Fannie, but in NJ the property has to be inspected by DCA every five years. A minor hassle if you keep up the place and know how to talk to these people.
    The 4 family, after PITI provides clear cash flow > 2k monthly

  111. Brian says:

    Unfortunately, due to household budget cutbacks (as a result of overtaxation), I have been forced to fire up the keg machine and buy cheap light beer in bulk. So, no Sammy for me for a while.

    I haven’t bought the Sam Lite in a while….don’t think I liked it at the time but good for a light beer I suppose. Plus Boston Lager has been on sale at Shoprite liquors….

    110.Comrade Nom Deplume says:
    May 16, 2012 at 2:33 pm
    [101] brian

    Not a big fan of either of those Sams. In fact, I am almost solely a Sam light drinker now. Damn good light beer.

  112. JJ says:

    XOLEPA what do you do with the 2k a month? Just curious? I gave a rental proposition on a bank property to my wife crunched numbers and it was like 1k a month. Wife went and what do I do with the 1k a month, just more money to deal with. I was like we get more houses. She was like and then what. Sounds like a big cash cow in 30 years after mortgage is paid off but I will be almost dead by then. She was not too positive. But had a point. Then she made me back out the cost of buying and mainting home and lost interest income. Then I was only making like a few hundred a month. She was like you make a few hundred almost every day trading while eating a sandwhich at lunch, I go yes but that is not a sure thing. She said is house a sure thing. I say no. By then I just gave up. Bottom line is I am in Manhattan 12 hours a day, unless I had great tenants and a good house I will be in trouble.

    xolepa says:
    May 16, 2012 at 2:28 pm

    Libtard,
    Go one step further and learn how to install boilers. I learned from my father and just plain old common sense. And read up alot. My father wasn’t a plumber and I’m not, either. Just have an MBA. I have installed now 3 new boiler systems. 2 rental. 1 vacation. Also, for heating installs, you don’t have to be certified unless drinking water comes into play.

    I am also starting to get itchy and am thinking of buying multi in the Hunterdon, Warren county areas. 2 families don’t provide enough cash flow. 4 families are good because they finance under Freddie/Fannie, but in NJ the property has to be inspected by DCA every five years. A minor hassle if you keep up the place and know how to talk to these people.
    The 4 family, after PITI provides clear cash flow > 2k monthly

  113. JJ says:

    Genworth Financial Inc. Cl A

    Why is Genworth down another 6% today and basically down every month is housing is recovering. Genworth mortgage insurance group is dragging them down. If home prices indeed was rising and defaults were indeed falling Genworth stock would be rising. NAR is saying funny stuff.

  114. gary says:

    JJ [117],

    Members of the NAR are approaching the 3rd stage of the Kubler-Ross model. As much as it pains us to see them this way, we know they’ll eventually heal.

  115. xolepa says:

    (116) #1 – Pay my kids college bills, 2 # pay for retirement property, 3 – pay for car purchases

  116. 3B says:

    #97 Jill: I am the expert on the land of the Unicorn, and yet somehow I cannot get gary to put it on his list of towns. I wonder why?? Oh yeah never mind. Speaking of WT saw a little cape that came on recently on Howard, any thoughts on that street?

  117. seif says:

    here are some examples of those quickly snatched up listings I have been seeing:

    Est Cls Dt: 5/25/2012 UCD: 5/14/2012 DOM: 14
    Est Cls Dt: 6/30/2012 UCD: 5/15/2012 DOM: 48
    Est Cls Dt: 6/30/2012 UCD: 5/14/2012 DOM: 15
    Est Cls Dt: 6/15/2012 UCD: 4/30/2012 DOM: 14
    Est Cls Dt: 7/1/2012 UCD: 5/1/2012 DOM: 16
    Est Cls Dt: 5/15/2012 UCD: 3/19/2012 DOM: 14
    Est Cls Dt: 5/21/2012 UCD: 3/8/2012 DOM: 27
    Est Cls Dt: 6/21/2012 UCD: 3/16/2012 DOM: 16
    Est Cls Dt: 7/26/2012 UCD: 4/20/2012 DOM: 33

    will report on prices when available

  118. JJ says:

    I already saved for all that type of stuff.

    But anyhow BAC has a short sale near my house for 299K, check this out. Guy who is a handyman immigrant bought it at peak for 550K!!!! and put in a new kitchen and one new bathroom!!! Taxes shot up when he bought it to 10K from 7K in in 2005 and they placed house in a flood zone after purchase and he has a $4,000 flood prem. OUCH. House is nothing special, but guy most have thought he would live there forever so in good shape. Part of issue not selling is no basement, people dont like houses with no basement and next to elementary school, like 50 feet away. However, may make good rental as right next to school and a short walk to train. Best part is corner house house with detached garage. I need the garage for my mercedes. Hopefull tenant wont mind. Not like he will have a mercedes. And walking distance from my house. I will try to hit bank for 250K cash offer. Do 100K equity on my house, pay rest cash. No mortgage. Gets me out of flood insurance issue. House cant flood anyhow no basement. Then grieve taxes, which I am an expert on to get taxes back to 8k. Current owner is screwed multiple ways. Flood zone with no basement he has no risk of flood yet he needs to carry flood insurance based on mortgage amount, not even value of house. He cant grieve taxes as he paid 550K and house is assessed at 399K. I can buy cheap and use sales price as basis for tax grievance. Plus now BAC is willing to pay him to move. Can rent a house like that for 2k a month. Non short sale houses like it are selling for 399K.

    xolepa says:
    May 16, 2012 at 3:24 pm
    (116) #1 – Pay my kids college bills, 2 # pay for retirement property, 3 – pay for car purchases

  119. chicagofinance says:

    Juice: Given what I do, I cannot state my opinion in an open forum…..I have no control and, at least theoretically, liability….sounds like a recipe for certain doom…..

    Juice Box says:
    May 16, 2012 at 1:40 pm
    Chi – not having an opinion, are you telling your clients that?
    I say you are chicken shart.

  120. JJ says:

    FB is a meaningless investment. MS has limited retail investors to only 500 shares. Fidelity even less. I qualify to be in it but I only put in for 100 shares. Even if it goes up 100% big deal. One can only buy 500 shares. what is that like 20K, chump change in the sense only millionaire can participate.

    chicagofinance says:
    May 16, 2012 at 4:18 pm

    Juice: Given what I do, I cannot state my opinion in an open forum…..I have no control and, at least theoretically, liability….sounds like a recipe for certain doom…..

    Juice Box says:
    May 16, 2012 at 1:40 pm
    Chi – not having an opinion, are you telling your clients that?
    I say you are chicken shart.

  121. Jill says:

    JJ said: “Jill has an unemployed husband sitting at home wonder what his rate is for home improvements? People pay good money to do simple tasks around house. ”

    DH just got a contract gig for 1 year, so he is not available for home improvements, not that he is anyway; he hates doing this stuff. I am the handyman around the house. I could probably yank out the vanity and toilet myself, and even do the tile. But good plaster repair is best left to professionals, and since my elderly Jewish father and his former Luftwaffe pilot buddy (yes, really) put up the old medicine cabinet with the light bar in 1996, G-d only knows what kind of surprises they had to rig up to do it. I know it took them all day. Dad is now 87, is just over chemotherapy, and lives in Florida so he is no longer available.

    I think it’s important to know one’s own limitations, lest one end up starring in “Removation Realities.”

    3b #120: I know the house you’re talking about; that’s my neighborhood. :-) Those streets are the “low-rent district” of WT, but it’s nice…mostly families but some old folks like us. Howard is a quiet street. The only real issue is that if you have to leave for work any time between, say, 7:20 and 8:00 AM, Ridgewood Road backs up with people taking their Little Darlings™ to the high school. It can take 20 minutes to get from Howard St. to Pascack Road. What I usually do if I have to leave around that time is take the back roads and go out to Pascack Rd. by the strip mall. The area is very walkable and bikeable. Looks like the house is in decent shape; based on what I’ve seen lately in the neighborhood I think this one will go under contract pretty quickly. Stuff is actually selling in WT if it’s priced right.

    I think you could appeal those taxes next year, though…

  122. Thanks for my new handle, jj.

    “The rats should be smaller than cats as that is where I draw the line.”

  123. JJ says:

    Jill, you can bring home the bacon, fry it up in a pan and never every let your hubbie forget he is a man.

    1996 would be brand new to me. I three bathroom, one with a 1955 cabinet one with a a 1971 cabinet and the new bathroom with a 1991 cabinet. 1996 is only something I can dream of

    Jill says:
    May 16, 2012 at 4:43 pm

    JJ said: “Jill has an unemployed husband sitting at home wonder what his rate is for home improvements? People pay good money to do simple tasks around house. ”

    DH just got a contract gig for 1 year, so he is not available for home improvements, not that he is anyway; he hates doing this stuff. I am the handyman around the house. I could probably yank out the vanity and toilet myself, and even do the tile. But good plaster repair is best left to professionals, and since my elderly Jewish father and his former Luftwaffe pilot buddy (yes, really) put up the old medicine cabinet with the light bar in 1996, G-d only knows what kind of surprises they had to rig up to do it. I know it took them all day. Dad is now 87, is just over chemotherapy, and lives in Florida so he is no longer available.

  124. jj, you ever own an AMC Gremlin?

  125. xolepa says:

    (122) I already saved for all that type of stuff.

    Except for the right (bigger) house for you and your family, which you deemed unaffordable. And city college educations don’t count. Your kids won’t make the lifetime connections they will need to get ahead. I took my risks in the early 90s when housing plummeted drastically in comparison to today’s slow choke death. My income went from 6 figures to mid 5 digits that one year when I decided to build the house my kids would grow up in and for I and my wife to pass to the retirement years. I was about 35 at that time. It is much too big to retire in. You, on the other hand, passed on that opportunity and live, well, quite modestly. So, it is all relative.

    Now on that property, It is a very good idea, IMHO. It will work. One suggestion: can you buy a cash business and have your wife run it?

  126. JJ says:

    n case you were wondering, yes, today’s decline in JC Penney (JCP) shares of $6.57, or 19.7%, to $26.75 was the largest percentage drop in the stock’s history, according to Dow Jones data mavens.

    I though JC Penny was through with mark-downs.

  127. JJ says:

    I am a multi millionaire. My interest income is around 120K a year alone. I not really worried. Plus I already know everyone. Big suprise is upper mgt is ivy league, senior mgt is not. Most CEOs and Board members I deal with are CUNY, SJU, Pace, Fordham, Rutgers graduates, the staff midlevel SVP types go to IVY league. I have never worked for an IVY league person in my life. I am a street fighter like Jaime Dimon. A good friend of mine made 100 million back in 2006 and currently makes 10 million a year and lives in a 60×100 split. It is all relative.

    xolepa says:
    May 16, 2012 at 5:15 pm

    (122) I already saved for all that type of stuff.

    Except for the right (bigger) house for you and your family, which you deemed unaffordable. And city college educations don’t count. Your kids won’t make the lifetime connections they will need to get ahead. I took my risks in the early 90s when housing plummeted drastically in comparison to today’s slow choke death. My income went from 6 figures to mid 5 digits that one year when I decided to build the house my kids would grow up in and for I and my wife to pass to the retirement years. I was about 35 at that time. It is much too big to retire in. You, on the other hand, passed on that opportunity and live, well, quite modestly. So, it is all relative.

    Now on that property, It is a very good idea, IMHO. It will work. One suggestion: can you buy a cash business and have your wife run it?

  128. chicagofinance says:

    The End Is Nigh (JJ Baseball Edition):

    Stephen Strasburg gets roughed up in four-inning stint Tuesday as he can’t get comfortable on mound.

    Stephen Strasburg was feeling the heat Tuesday, but it had nothing to do with the velocity of his fastball.

    The Nationals’ ace pitcher struggled through four innings in Washington’s 6-1 loss to the Padres Tuesday, and his day was over not a moment too soon.

    Apparently Strasburg used some Hot Stuff balm — a Ben Gay, Icy Hot-type product — on his shoulder before taking the mound and somehow the analgesic cream found it’s way into a spot on Strasburg’s body that made for an unpleasant afternoon on the mound.

    “I can’t really tell you what the problem was, but some Hot Stuff got misplaced,” Nationals manager Davey Johnson told reporters after the game. “It was on his shoulder and evidently – I don’t know how it got to where it got, but it was uncomfortable, to say the least.”

    According to the Washington Post, Strasburg’s teammates believed the skipper’s story that the cream somehow ended up in a sensitive area; all were in agreement that no one would have pranked the pitcher on a day he’s scheduled to start.

    Strasburg, who gave up seven hits and four earned runs — both season-highs — didn’t sound pleased with his manger’s post-game candor.

    “Yeah, you know, I’m going to keep that in the clubhouse,” Strasburg (3-1, 2.25 ERA) said after his shortest outing since Sept. 23, 2011.

    “Yeah, it was just tough conditions all around,” the pitcher continued, alluding to a short rain delay in the first inning that perhaps threw him off his rhythm. “But I’m not one to make excuses. It’s just one of those games where you go out there and do your best to overcome the obstacles.”

    While Strasburg didn’t enjoy getting Hot Stuff where the sun doesn’t normally shine, some pitchers use that as motiviation. Former Yankees pitcher Roger Clemens reportedly used copious amounts of Icy Hot while pitching. In Joe Torre’s book with Sports Illustrated’s Tom Verducci, The Yankee Years , there’s an anecdote about Clemens using a Hot Stuff-like balm on his testicles.

    “He’d start snorting like a bull,” Yankees trainer Steve Donohue said, “That’s when he was ready to pitch.”

    Strasburg’s next scheduled start is Sunday against the Baltimore Orioles. The Hot Stuff will probably be kept at a safe distance that day.

  129. seif says:

    Sorry to burst the bubble Nom but it seems taxes had nothing to do with Eduardo’s decision! (read the last paragraph):

    http://livewire.talkingpointsmemo.com/entries/report-facebook-co-founder-to-save-67-million

  130. Young Buck says:

    I am a local. Born (literally, in St. Elizabeth’s hospital) and raised. I grew up in a 2 family house and saw my father deal with many tenants over the years. So I’m really comfortable here. I do agree most owners don’t live in town and renters really run the elections.

    I haven’t experienced the stricter tenancy & eviction laws you mentioned yet and hopefully I won’t have to. I did find all the city ordinances online so thanks for mentioning it.

    http://library.municode.com/index.aspx?clientID=16168&stateID=30&statename=New%20Jersey

    103. xolepa says:
    May 14, 2012 at 4:30 pm

    Mr. Buck,
    You’ll have to read between the lines. Those ordinances aren’t written. They are disseminated as part of a culture of redistribution. My next door neighbor sold out many years ago there because: landlords don’t live in town and thus don’t vote. Renters and friends can and do vote when there is a need. Unless you hire the ‘inside’ attorney ($$$) it will be grief. Leave Elizabeth to the locals.

  131. Neanderthal Economist says:

    Update on house purchase: sellers finally allowed us to test for mold near the roof leak but the radon test came back with some godawful 10+ reading. We told sellers to knock significant amount off the price or we walk. Got letter 5 hours later saying deal is done. Thankfully.

  132. Young Buck says:

    Grew up in Roselle Park, which borders Roselle and Elizabeth, and had never encountered a person of diversity?

    85. xolepa says:
    May 15, 2012 at 2:30 pm

    (81)
    racist story: My wife and I were engaged in early 80′s. I wanted to buy a 4 family in Morristown, law office block. Easy rental money. Put minimum down. Move out in a year, have $$$ rolling in afterwards. Realtor showed a neighboring multi 3 houses away. Realtor knocked door. It was morning. A little while later, person of diversity appeared and opened the door. My wife ran, literally ran, back into the car and said I’m not looking here no more. Realtor and I just shook our heads. I felt sorry for the realtor. My wife was 22 years old at the time. Grew up in Roselle Park. I grew up in a truly diverse environment – race riots every May and more.

  133. Neanderthal Economist says:

    Diversity is really important for us. We want our children to be exposed to different cultures so they understand that its a global world.

  134. Join the Army, meet interesting people, then kill them.

  135. The Original NJ ExPat says:

    I think you left out the “travel to exotic countries” part, or is this a domestic people-pruning op?

  136. The Original NJ ExPat says:

    #136 – Young Buck – It’s funny how as a kid you think the country’s demographics are the same as your neighborhood/town. Where I grew up it was about 40% Catholic, 40% Jewish, 15% Protestant, 5% other. As little kids when we’d circle up and discuss what made our families different. Catholic/Jewish – that was easy to understand. Indians/Asian – OK, we get that too. What we didn’t get was the Protestants. It just seemed to most of us like there were so many different flavors and nobody could explain why you would be in such a tiny minority that didn’t seem any different than Catholic. Years later I was flabbergasted to find out that Protestants weren’t the minority, but the majority. I even became one 20+ years ago. Where my Mom grew up, a coal mining town in Central PA, they had REAL diversity. They had Irish Catholics, Italian Catholics, Polish Catholics, and Greek Orthodox. Like Detroit, lots of Muslims their now. Cheap houses and they bring their own community.

  137. Comrade Nom Deplume says:

    [133] seif,

    Glad you cleared that up. And I thought it was publicist BS.

  138. Mikeinwaiting says:

    Is there a strike, where is everyone? Must have missed the memo.

  139. good information here. thanks.

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