Fed: Modest improvement in housing markets

From the Fed:

Beige Book – August 29, 2012 – Second District–New York

Construction and Real Estate

Housing markets across the District have shown further signs of modest improvement since the last report. The housing market in the Buffalo area continued to show strength through mid-July, though activity has dropped off in recent weeks–to a greater extent than the seasonal norm. Northern New Jersey’s housing market has bottomed and is showing scattered signs of improvement, according to an industry expert. This contact also maintains that internal market fundamentals are favorable: low and declining inventories, pent up demand, high affordability and a steady reduction in the foreclosure pipeline Manhattan’s co-op and condo market has been fairly active since mid-year, relative to the normal seasonal pattern of slowing. In particular, there has been strong activity at the very high end (for “trophy properties”) and also for entry-level apartments, driven in part by low mortgage rates. There has been more significant improvement reported in Brooklyn and especially in Queens, where an inventory glut has evaporated surprisingly quickly, according to one contact. New York City apartment rents have continued to rise across all segments, and Albany’s rental market has strengthened noticeably, with rents running 7 percent higher than a year ago.

Financial Developments

Small- to medium-sized banks in the District report a noticeable pickup in overall loan demand. Particularly widespread increases in demand were reported for both residential and commercial mortgage loans, while demand for consumer loans was little changed. As was the case in the last report, demand for commercial & industrial loans decreased. Bankers also indicate steady demand for refinancing. Virtually all contacts report no change in credit standards across all loan categories. Respondents indicate continued decreases in spreads of loan rates over costs of funds for all loan categories–particularly commercial & industrial loans and commercial mortgages. Respondents also note continued declines in the average deposit rate. Finally, bankers report declining delinquency rates, particularly on commercial & industrial loans and residential mortgages.

This entry was posted in Economics, Housing Recovery. Bookmark the permalink.

119 Responses to Fed: Modest improvement in housing markets

  1. Comrade Nom Deplume says:

    frist

  2. Comrade Nom Deplume says:

    Okay, what I came here to post: Seems that expatriation isn’t just for wealthy traitors anymore.

    http://finance.yahoo.com/news/u-firms-move-abroad-024200566.html

    Congress passed a couple of rounds of anti-inversion legislation to keep the slaves on the farm. Turns out that some smart alecky tax lawyers figured out how to slip the shackles.

  3. Libtard at home says:

    Frist…finally!

  4. The Original NJ ExPat says:

    [2] Need more printing. Job one is keeping the rich on an upward arc towards richer so they don’t leave. Job two is giving the poor enough money not to riot. The problem is that the demographic in between who are financing the operation are dwindling.

  5. Libtard at home says:

    Damn you Nom. Get a job already!

  6. Ernest Money says:

    expat (4)-

    Wake me up when it’s time to start shooting.

  7. Painhrtz - I am a meat popsicle says:

    Clot watch ten minutes of the team red convention and you will realize its time

  8. Ernest Money says:

    pain (7)-

    I watched ten minutes of it last night & wanted to turn a gun on myself.

    Or Santorum.

  9. Painhrtz - I am a meat popsicle says:

    Yeah when I see senator frothy mixture I have the same feeling. Nom from previous yeah I know it can’t be fixed but until they get more deer in Oregon and biotech I’m stuck here. I hate cali north Carolina too warm. Mass well may as well stay here. Though I hear the Mass folks are starting to take their intellectual property over to new Hampshire that intrigues me

  10. t c m says:

    I’m thinking of starting to look in Westfield. Are there any areas I should stay away from. Any inside information/advice?

    I’d like to pay less than $625M.

  11. grim says:

    From HousingWire:

    Fewer Americans are late on mortgage payments: Fed Bank of New York

    Fewer Americans fell behind on their mortgages, credit cards and auto loans in the second quarter of 2012, the Federal Reserve Bank of New York said in its Quarterly Report on Household Debt and Credit.

    Total household indebtedness also experienced a $53 billion drop from the first quarter, leaving Americans with $11.38 trillion in total household indebtedness. That figure is about $1.3 trillion below household debt totals from the third-quarter of 2008.

    The New York Fed Bank says mortgage debt is on the decline as more Americans refinance into favorable low-interest mortgages created by today’s low interest rate environment.

    “The continuing decrease in delinquency rates suggests that consumers are managing their debts better,” said Wilbert van Der Klaauw, vice president and economist at the New York Fed. “As they continue to pay down debt and take advantage of low interest rates, Americans are moving forward with rebalancing their household finances.”

  12. Comrade Nom Deplume says:

    I don’t much care for political speeches. I tune them out. But I had Condi Rice on in the background and she rocked it. Maybe because she isn’t running for anything, who knows, but I had to stop and listen.

  13. Comrade Nom Deplume says:

    tcm,

    In the brig, best is close to downtown but not too close. Also, you can score decent hoods at that number but only for a smaller house. Email me at nomdeplumenj@gmail.com

  14. Ernest Money says:

    Funny how the person at the RNC with no agenda and no desire to run for office delivers a decent speech.

    I think Tim Pawlenty is a certifiable retard.

  15. Comrade Nom Deplume says:

    Just saw a story about Alaska. The state put out bids to build two warehouses for emergency food storage. Idea is that would be for natural disasters

    Alaskans are natural preppers and they get their fair share of disasters. Also government disaster food storage isn’t new as anyone old enough to remember fallout shelters can attest.

    I thought that the timing was curious. But when one considers that food prices are set to skyrocket, and they are only building two warehouses, it does seem more like disaster prep.

    Still, there is a faint odor of conspiracy here. Very faint but there nonetheless.

  16. relo says:

    40: Prior post – Essex,

    Name the last candidate who justifiably felt otherwise.

    “like a little boy full of wonder and awe at how he, a relatively obscure politician could be on the National stage.”

    74: Prior post – JJ,

    Swab the walls for meth residue.

    “two exterior doors looks like she was robbed or something as they are broken.”

  17. Mike says:

    Good Morning New Jersey

  18. grim says:

    From Bloomberg:

    Distressed Home Prices Jump With Inventory Shrinking

    Demand for distressed properties is driving up prices for the first time in two years as investors from Blackstone Group LP (BX) to Colony Capital LLC chase shrinking inventory.

    The average sales price on homes in the process of foreclosure or already owned by banks rose 7 percent in the second quarter from a year earlier, the biggest annual increase since 2006, RealtyTrac Inc. reported today. The number of those deals dropped 22 percent, the most since 2010, the Irvine, California-based data provider said in a statement.

    “There’s virtually no supply in a lot of markets right now,” Michael Krein, president of the National REO Brokers Association said in a telephone interview. “What we’re finding nationally is that 50 percent of all purchasers are investors because they can outbid the owner occupant buyers. Investors are bidding up anywhere from 5 to 25 percent over the list prices.”

  19. JJ says:

    AAA 30-Year muni bond average yield hit for 3.001% I will be amazed if it breaks 3. Imagine it was at almost 6% just 19 months ago when the bleach blonde went on 60 minutes crying the sky is falling.

    People selling 30 year muni bonds at 6% = People buying 30 year Muni Bonds at 3% in terms of craziness.

    Went with contractor to short sale last night. House needs two new bathrooms, a new back door and frame right away and rest is cosmetic. House was maintained up till 2003 but lady who got went under pretty quick, she was very nice, but it was too much. So bascially house has 10 years of no maint.

    Biggest beach bungalow I ever saw in my life. Was orginally a 800 square foot bungalow. Back in 1970s owner put a 200 square foot extension on ground floor and then in the 1980s dormered it on top, dormer is even over extension. So it is a 2,000 square foot bungalow, meanwhile it kinda looks like the 800 square foot bungalows. My wife claims you cant call a 2,000 square foot house a bungalow. But I see in southampton people claim they hae 3,500 square feet bungalow, is their a rule of thumb how many sq feet is too much to keep your bungalow status.

  20. Essex says:

    I recently received a Spring Lake real estate tutorial from a couple of locals. Facinating really. Modular homes seem to be one way of dealing with tear downs. Prices still stratopheric.

  21. Brian says:

    That’s an idea JJ. Is there a dump you can buy, bulldoze and put up one of those modular homes in its place?

  22. Anon E. Moose says:

    Pain [9];

    Yeah when I see senator frothy mixture …

    Its a perverse combination of immaturity and self-loathing to name an offensive bodily discharge that a person themselves intentionally induces after someone they irrationally hate, and think its funny.

  23. 3b says:

    Grim: from yesterday. Thanks for the information. We may just have you put a bid in for us and see how it goes. Someone should get the commission and after all your work with the blog. It should be you.

  24. 3b says:

    #20: lots of houses for sale in spring lake. Block after bloc. Some blocs 3 or more houses for sale.

  25. Ernest Money says:

    moose (22)

    The real perversi0n is pimping your disabled kid in speeches to score political points.

  26. Ernest Money says:

    Sanitarium has gotten more mileage out of that kid than a set of Michelins.

  27. Ernest Money says:

    I think Paul Ryan and Tony Horton are secret butt-buddies.

  28. Brian says:

    BTW, JJ saw this post the other day and never got a chance to reply. Your wife’s friend should really be a marriage counselor or a therapist. I don’t know why women think nagging will get a guy to do anyting. It has the exact opposite effect.

    79.JJ says:
    August 27, 2012 at 5:15 pm
    Funny wife is out with ladies a few weeks ago and one lady goes my husband does whatever I want, so ladies go what is secret, she says I give her an amazing BJ, swallow and then ask him to do it while he is still in that happy, docile fog. Who needs handymen, lawnservice or arborists.

  29. The Original NJ ExPat says:

    No FDIC bank failures since August 3rd? They never seem to shutter any on a holiday weekend so I wouldn’t expect any for tomorrow either. Methinks something strange is afoot.

  30. Fast Eddie says:

    No inventory, for sure. We’re going to houses already knowing it’s an overpriced hunk of sh1t just for the sake of being consistent. These are not open house, they’re scheduled appointments. Anything that’s move-in condition priced with normal market mentality is gone in a flash. The people who bought my house are saints and have the flexibility to stay with inlaws indefinitely but how long is too long? I’m aching to bid but refuse to get into a bidding war with 20 other buyers for the one house that’s available.

  31. 1987 Condo buyer says:

    Analgous to housing bubble?

    http://online.wsj.com/article/SB10000872396390444230504577615861593287688.html?mod=WSJ_hp_EditorsPicks

    “Boomer entrepreneurs grew up believing in the American dream that you could start a business and eventually sell it for a good return or pass it onto your kids,” adds Aaron Chatterji, associate professor at Duke University’s Fuqua School of Business in Durham, N.C. “Because of the financial crisis and subsequent recession, that is more difficult today.”

  32. Comrade Nom Deplume says:

    [29]. Expat,

    This is an administration that will suppress and manipulate even the minutest data point to preserve the facade of stability. We’ve seen that. The degree of politicization of the bureaucracy also seems unprecedented in our lifetimes. So you may well be onto something.
    The proof will come in the form of a dozen or so bank closures in mid-November.

  33. Painhrtz - I am a meat popsicle says:

    25 Earnest Money better than I could say it. moose your team red neocon is showing. If you find Santorum’s nickname offensive go look up two girls one cup. that is offensive.

    Nom caught bits of Condi’s speach last night it was pretty good. the problem is without the soviets she and her ilk have been looking for dragons to slay and Al Queda gave them one. While I think she is very intelligent and was quite a capable secretary of state. Being in the Bush adminstration and a neocon has tainted her beyond repair and she is wise to stay out of the fray.

  34. Jill says:

    #31: But wait! Willard said that kids should “take a shot…start a business!!!” — by borrowing from their parents.

  35. Mikewaited says:

    Initial Jobless Claims: 374K vs. 370K consensus, 374K prior revised (prior week 372K). Continuing claims +9K at 3.32M

  36. 3B Buying says:

    ALl eyes on Bernanke at jackson Hole tomorrow, and most of the consensus is QE3. If he does not, markets will not be happy.

  37. joyce says:

    (34)

    Jill,

    But wait! Barack said he would close Gitmo? (among other things that he had no intention of doing)

    They are ALL criminals.

  38. Fast Eddie says:

    The guy currently occupying the White House is an illustration of the emergence of a muffin top, tat society. The question is whether we continue down the path of a mud mixer mentality or have the guts to wipe the slate clean and build from the ground up.

  39. Juice Box says:

    Re: #20, #24 prices are high to keep out the riff raff, small very old homes are $600k, 2 blocks away on the other side of the train tracks in the Heights you can find the same thing for half the price, but you won’t get sponsored for the tennis club.

  40. 3B Buying says:

    #41 Juice: Still a lot for sale though. I have senn a couple that looks like construction has stopped. Still a beautiful area though, but the taxes are crushing.

  41. Juice Box says:

    3b – yeah seems some of the spec builders ran out of credit and have slowed work to a crawl and few even stopped work all toghether, reminds me of the early 90s same thing happened then too. It is still different there just like JJ’s Hamptons.

  42. grim says:

    43 – moreso I think learned their lessons, a lot of the spec build in the last year up here has been on property with very low cost basis, either acquired years back, foreclosure/short teardowns, and subdivisions of large lots purchased at good prices.

    I know a builder who dipped into their land to build out some spec earlier this year, simply because his crew didn’t have much work.

  43. grim says:

    Speaking of spec, my father is doing some electronics work on a spec house up in Alpine that’ll be priced at 20 or 30 million. He was retired for all of a week or two before he went back into business, out of boredom. It’s pretty crazy. Metalwork alone on that place is costing more than a nice Bergen County 3br/2.1ba.

  44. The Original NJ ExPat says:

    [11] grim (housing wire article) – Refinancing doesn’t reduce mortgage debt unless it is cash-in refinancing, right? I believe mortgage debt is on the decline because the prudent can’t find much better options for their cash than paying off their house. In addition the other driver is that cash purchases at a sheriffs sale also lowers total mortgage debt as the debt of the foreclosed upon previous “owner” has either disappeared or transitioned into non-mortgage debt (deficiency judgement).

    The New York Fed Bank says mortgage debt is on the decline as more Americans refinance into favorable low-interest mortgages created by today’s low interest rate environment.

  45. grim says:

    Refinancing doesn’t reduce mortgage debt unless it is cash-in refinancing, right?

    I don’t have the link handy, but Cash-In refis were running approximately 20-25% in the first half of 2012. I believe this number was running higher before HARP kicked in (owners were kicking in extra cash to meet equity minimums). I think this is a very strong number given the housing market and the economy.

    But for equity-neutral refinancing, remember that it does reduce the monthly cost of housing, and this can be big. When I refinanced I saved around $250 a month. I know it’s no big deal, but it essentially means I no longer need to make 12 payments a year, but only 11. Or, maybe it means I can buy a car, or an appliance, or do some minor remodel or upkeep, take a vacation (I think you get the point).

    I believe mortgage debt is on the decline because the prudent can’t find much better options for their cash than paying off their house.

    I believe there is some truth to this. Anecdotally, I know at least 3 different people that put cash in, in order to refinance from a 30 year into 15 year term. They all put cash in to keep the new monthly payments manageable enough in order to take advantage of extremely good rates. These guys will all stand to save tens (hundreds?) of thousands of dollars over the next few years.

    Every day this behavior continues to take place, overall debt burden is reduced and and additional cash is made available for further debt reduction, discretionary purchases, etc.

  46. grim says:

    In my case, if I take the savings from going from 4.5 to 3.9 (which is relatively minor net difference, I know of a couple recent refis that took 5.25 down to near 3.5), and take that savings and plow it right back into the mortgage, I’m essentially saving about $100,000 over the term of the mortgage, and I didn’t cash in.

  47. Libtard in Union says:

    We keep shortening the term of the loan. Last refi was no-cost. Our first refi we paid an additional $200 per month to take 5 years off the loan. Don’t worry, we did the math.

  48. JJ says:

    Spending less is not savings unless you save the money

    grim says:
    August 30, 2012 at 11:57 am

    In my case, if I take the savings from going from 4.5 to 3.9 (which is relatively minor net difference, I know of a couple recent refis that took 5.25 down to near 3.5), and take that savings and plow it right back into the mortgage, I’m essentially saving about $100,000 over the term of the mortgage, and I didn’t cash in.

  49. joyce says:

    by definition spending less you are spending less… no one said spending less (on the mortgage and wasting it elsewhere)

  50. prtraders says:

    Was at a client the other day talking about the insane cost of college. She has adult kids out of school and I have three (3-12). I said I had no idea how I would ever pay. She said, “I guess you’ll do what everyone else did. Home equity line of credit.” First, I don’t own a house. Second, I don’t think that option will be available to pay for school like it was in the past.

  51. Fabius Maximus says:

    Fast Eddie, at 10K taxes this is nice deal. There is quality out there, you just need to look harder.

    http://www.realtor.com/realestateandhomes-detail/60-Lake-Ave_Midland-Park_NJ_07432_M67942-43033

  52. Libtard in Union says:

    prtraders,

    Whatever our multi is worth in 2023 will go to pay for our children’s tuition since we’ve got about one year’s room and board saved in the 529 so far. Figure I sunk $165,000 into it when you add the downpayment plus the upgrades. It should easily pay for itself the rest of the way. Currently it’s worth about 400K. It should be worth about 500K when we sell it based on long-term home appreciation average. Maintenance is easily covered in the rent and then some. It’s kind of like a prepaid tuition plan. Plus, it’s great for my taxes. I just hope 250K will cover junior’s college education. If it doesn’t, he’s off to vocational school. My parents didn’t support me and lord knows we won’t be supporting him. He’s already looking forward to working in Burger King in 7 years time. We had that discussion yesterday after he was pissed that I was taking his water bottle replacement cost out of his $1 per week allowance since he left it at hockey camp. Fortunately, it was in the lost and found this morning.

  53. Libtard in Union says:

    Fab…a very cool place in a very crappy location.

  54. Jill says:

    Libtard #49, grim, et al: My dilemma is that I have just under 7 years and $87K left on a 15-year @ 4.75%. Valley National will do a 10-year refi @ 3.25 with no prepayment penalties for $899 in closing costs, but I would have to take $13K out to make it a $100K mortgage. I’m wondering if I could do this and give them the $13K right back, then pay what I’m paying now and pay it off in the same time or less, and pay less interest. I am so far into this mortgage now that I am only paying about $300/month in interest.

  55. Libtard in Union says:

    Jill,

    Make sure there is no prepayment penalty, but ultimately you are looking at saving 1.5% on what will average out to be about $150 per month of interest on the remainder of your current loan. That’s like $2.25 per month for 7 years or $89. Doesn’t seem worth your time now does it?

    I can’t think of a single case where it makes sense to refi (unless you need an additional loan) once your loan is below 15 years. Especially if the total borrowed amount of the loan isn’t large.

    Sorry, but I can’t see how this is worth it. Even Captain Cheapo wouldn’t waste his time on this.

  56. Libtard in Union says:

    Wow. 15-year is still at 2.75. If 10-year UST gets back down to the 1.40s, I just may still get my 3rd refinance in 2 years. Will Ben really take 13 years off of my loan for next to nothing?

  57. Fabius Maximus says:

    #55 Lib

    Its acutally a very good location. Its a 2 min walk to an express bus to Port Authority. It is a 15min FLAT walk to Ridgewood train station. Behind the house is a medical buiding that they never see the traffic and is only 9-5, M-F. In front is a very expensive part of Ridgewood with a lot of old money houses.

  58. 1987 Condo buyer says:

    #54, I was disappointed to learn of depreciation recapture when I sold my condo after renting for 7 years and my investment townhome after 15 years

  59. Comrade Nom Deplume says:

    [53] fabmax,

    If not for family needs, I kinda like that house. Not at 10k taxes though. I just like the style.

  60. Comrade Nom Deplume says:

    [60] condo,

    Section 1250 of the code. Yep, its a bytch.

  61. grim says:

    53 – Can you actually stand on the second floor? For years we hunted for a historic place in the Mendham area, and every time we found something that looked promising, the 7 foot ceilings (or shorter) on the second floor were a deal killer.

    I remember stepping into the shower in one, with my head cocked sideways (it was hitting the ceiling in the shower), and the shower head came out of the wall about level with my chest. Fantastic! I guess that’s what the Realtors call “Charm”.

  62. Libtard in Union says:

    In other news, Gator and I are in the market for a used 7-seater truck. Our Xterra is probably worth about $5k on trade. It looks like the sweet spot on the Pilot (if you could even call it that) is a 2007 with about 60,000 mileage for around 20K. Any other suggestions for something smarter? It must be reliable. Gator refuses to drive stick so if the trucks in the shop, Gator’s on the bus.

  63. JJ says:

    After looking at tax rules on second homes I now know why rich folk who rent out their Hampton houses a few months each year never declare income. First the salary limitation prevents you from depreciating each year. If it is ordinary income your tax rate is high and the mortgage and RE tax deduction you get anyhow. Plus you have to break everything out and then when you sell you get a huge tax hit. If you only own one second home and only rent it our 1-2 months a year the IRS has made it an insane burden to declare the income. Heck you can rent 14 days tax free year year. I would rent Memorial Day Week, 4th of July and Labor Day each year 3 days, 7 days and 3 days.

    Also do realtors issue 1099s. Just wondering, some of these houses in summer rent for up to 80K. Big bucks, wonder if IRS is tracking realtors. The rich folk in Hampons leave everything in their name and no kids in school so I wonder how they track it. Must be from realtors or something.

    1987 Condo buyer says:
    August 30, 2012 at 1:53 pm

    #54, I was disappointed to learn of depreciation recapture when I sold my condo after renting for 7 years and my investment townhome after 15 years

  64. JJ says:

    Sell it yourself, you lose like 2-3 grand on a trade-in.

    Libtard in Union says:
    August 30, 2012 at 2:00 pm

    In other news, Gator and I are in the market for a used 7-seater truck. Our Xterra is probably worth about $5k on trade. It looks like the sweet spot on the Pilot (if you could even call it that) is a 2007 with about 60,000 mileage for around 20K. Any other suggestions for something smarter? It must be reliable. Gator refuses to drive stick so if the trucks in the shop, Gator’s on the bus.

  65. grim says:

    Also do realtors issue 1099s. Just wondering, some of these houses in summer rent for up to 80K. Big bucks, wonder if IRS is tracking realtors.

    Issue 1099s to who? Owners? Or are you talking about commissions? Commission checks aren’t payable to agents, they are payable to the brokerage company out of the disbursement at closing or acceptance of the lease, and the brokerage in turn cuts a commission check to the agent (after they take their cut). So, 1099 all the way. I suppose if you were a small independent shop, and were both broker and salesperson, you could fail to report the income and might get away with it. Now owners? Probably pretty easy to cash a couple of weekly rental checks without saying a word. Why not a cash discount? Even easier. Hell, go crazy, take payments in Ducats.

  66. Libtard in Union says:

    Fax,

    Medical building or not, it’s surrounded by parking lots. I suppose if your kid’s like street hockey, it would be ideal.

    Nom,

    I guess I should not take accelerated depreciation on anything that long-term would have an end of usable life date of 2023 eh?

  67. yo says:

    #52 PRTrader

    I have two kids that I sent to College.When they were young,I was worried to on how to send them to college.I saved for their college.What it turned out,my family income was able to send them without touching the savings..My daughter is in her last year,one more semester to go.Don’t get me wrong,I live the same as many middleclass family.Pay check to pay check, savings was in for college and 401k.

    I live 5 minutes from Rutgers campus.I paid their tuition with the 13th month pay.See,there is 52 weeks in a year that is 13 months.My monthly bills are only 48 weeks equal to 12 months.That extra one month pay was able to pay their tuition.Ok I added a little bit every semester but not as much as I worried.

  68. Libtard in Union says:

    JJ,

    Problem with selling it myself is that it’s a mess. Hole in bumper, permanent chocolate soymilk stains on ceiling when Gator Jr., discovered that a juice box can work like a water gun, etc. Lot’s of scratches. Would probably cost me a grand just to make it presentable and time is money. It has nice new tires though. We really beat on it. I use a truck like a truck should be used. At one point, the entire back was filled with wood chips. The truck has carted more sheetrock and ply than the rental truck at the local Home Depot. I’ll do better with a trade. Honestly, might only get 4K for it. I, of course, will shoot it up on Craigslist just to see if someone will bite. Probably to no avail though.

  69. JJ says:

    Once was selling a car that leaked a lot of oil. Went to Hamptons for weekend and guy wanted to come see it, go to friend look do me a favor show guy the car for me and if he offers at least 800 and pays cash take it. Just dont lie so much.

    Come back friend has ten $100 dollar bills for me. I go how did you do it without lying. Well Guy checks oil and sees it is like new. He asks how come oil is so new. I say my friend always changes the oil every five weeks and guy was impressed. I go how do you figure. Friend goes you told me car leaks a quart a week and holds five quarts therefore every five weeks you have changed the oil. Btw guy was a life insurance agent. Earned him a free night of drinks for 15 minutes work.

    Libtard in Union says:
    August 30, 2012 at 2:23 pm

    JJ,

    Problem with selling it myself is that it’s a mess. Hole in bumper, permanent chocolate soymilk stains on ceiling when Gator Jr., discovered that a juice box can work like a water gun, etc. Lot’s of scratches. Would probably cost me a grand just to make it presentable and time is money. It has nice new tires though. We really beat on it. I use a truck like a truck should be used. At one point, the entire back was filled with wood chips. The truck has carted more sheetrock and ply than the rental truck at the local Home Depot. I’ll do better with a trade. Honestly, might only get 4K for it. I, of course, will shoot it up on Craigslist just to see if someone will bite. Probably to no avail though.

  70. grim says:

    That MP house is nice, but it’s only got 1 full bath and 1 half. I doubt it has space for another.

  71. Painhrtz - I am a meat popsicle says:

    Lib the pilot is way underpowered and gets worse gas mileage than the X. consider that for a moment. You can also pick up a new hyundai Santa fe for the price of a used pilot. similar quality, great warranty and nicely appointed. We were looking at one before we settled on the element. Wife just felt the Santa Fe felt to upscale to throw yard stuff, the dog, etc. Plus we got the element dirt cheap. now witht he twins wish we had gotten the Santa fe instead.

    here is an example

    http://newjersey.craigslist.org/ctd/3239639488.html

  72. JJ says:

    Just wondering, several single people I know who have been laid off or moved back home subletted their condos or coops or took in roomates. None of them were even aware that is reportable. No 1099 for rent but they get a mortgage interest number from bank. Whole thing is silly though, should not be income in my opinion. For instance I subletted my apt in Queens once for $800 a month and moved to NYC in a rent controlled apt that rent was $800 a month. I took tennant rent and paid my landlord rent in an in and out move each month. That is bs that is income.

    grim says:
    August 30, 2012 at 2:09 pm

    Also do realtors issue 1099s. Just wondering, some of these houses in summer rent for up to 80K. Big bucks, wonder if IRS is tracking realtors.

    Issue 1099s to who? Owners? Or are you talking about commissions? Commission checks aren’t payable to agents, they are payable to the brokerage company out of the disbursement at closing or acceptance of the lease, and the brokerage in turn cuts a commission check to the agent (after they take their cut). So, 1099 all the way. I suppose if you were a small independent shop, and were both broker and salesperson, you could fail to report the income and might get away with it. Now owners? Probably pretty easy to cash a couple of weekly rental checks without saying a word. Why not a cash discount? Even easier. Hell, go crazy, take payments in Ducats.

  73. JJ says:

    What a stupid name for a Japanese vehicle. Japanese Pilots in WWII the kamakizes crashed their planes into things and died.

    Painhrtz – I am a meat popsicle says:
    August 30, 2012 at 2:32 pm

    Lib the pilot is way underpowered

  74. yo says:

    What boils me mad is,Rutgers charge you equal to 18 credits for a full time student and yet some kids will take less than 15 credits and take summer classes to catch up.Imagine if you are paying $50K a year for tuition and still pay for summer classes that you paid already.

  75. Painhrtz - I am a meat popsicle says:

    Sorry lib meant the Veracruz. sleep depravation

    http://newjersey.craigslist.org/ctd/3236639823.html

  76. Libtard in Union says:

    Thanks for the advice Pain. Will definitely take it into consideration. A Sherman Tank would get better mileage than our Xterra. We average between 13 and 14 MPH due to the sport tires. As for power, never really a concern of mine. My other car (the legendary Civic) has less horses than a Big M harness meet.

  77. JJ says:

    30-Year muni just hit 2.999%!!!!

  78. JJ says:

    That is why kids no longer work. I worked almost full time during college and had nearly all 15 credit semesters, I did 19 credits one year and between my 20 hour a week job and school hard to manage, even more so as sometimes I need to work OT. Today school is so expensive kid can earn enough even to pay for a 3 credit course so what is the point.

    yo says:
    August 30, 2012 at 2:35 pm

    What boils me mad is,Rutgers charge you equal to 18 credits for a full time student and yet some kids will take less than 15 credits and take summer classes to catch up.Imagine if you are paying $50K a year for tuition and still pay for summer classes that you paid already.

  79. 3B Buying says:

    #58 Lib: We will have a better idea tomorrow. Even if he disappoints initially (and the markets sell off on that), ultimately there will be QE3.

  80. Libtard in Union says:

    Yup. That’s how I read it.

  81. grim says:

    Yeah as an undergrad that worked full time, that pissed me off. I had to take both summer sessions to keep up. I especially hated the lazy slackers without jobs that pulled 21+ credit semesters back to back to back.

    I could handle the 18 credit semesters from a workload perspective, but it became impossible to put together a schedule since advanced courses were sometimes only provided in a single section.

  82. Libtard in Union says:

    I took a good number of my lib arts requirements at Middlesex Community College and drove forklifts at Wakefern/Shoprite (Raritan Center) to pay for college. I eventually got in with Residence Life which made housing free and worked various other jobs on campus (computer lab supervisor/managed the radio station) which eventually made college free. Not a bad deal. Parents, encourage your kids to become RAs in their sophomore year.

  83. yo says:

    My kids both work for spending money and books. Universities should charge per credit instead of a one fee for full time student. If you go 12 credits youre classified part time. You get charge by the credit and dont have to pay all the extra fees

  84. yo says:

    But if you enroll 13 credits you are classified full time you have to pay all the extra charges pus a full time tuition equal to 18 credits

  85. cobbler says:

    FWIW – they don’t advertise this, but Rutgers will give an almost full ride to anyone with SAT over 2300 (Trustees scholarship).

  86. JJ says:

    Actually biggest loophole is if your child is married he or she counts as independent automatically, free ride for college. Just have your son marry some smokin hot bimbo get the free ride and get that starter marriage out of his system right away. Harder to do if it is your daughter, but think about it. Men only get older, balder and fatter, think how smoking hot the girl would be at 18. Even better have 2-3 kids with her and divorce after grad school. Low low child support and alimony son graduates debt free and has his whole life to party without having to get married and have kids, I should be a guidance counselor. Maybe get one of the foreign chicks with a dowery, maybe ask for a sports car.

  87. JJ says:

    An the kid in great neck only charges $1.000 for that score

    cobbler says:
    August 30, 2012 at 3:55 pm

    FWIW – they don’t advertise this, but Rutgers will give an almost full ride to anyone with SAT over 2300 (Trustees scholarship).

  88. The Original NJ ExPat says:

    [53] FabMax – I *still* think there will come a day when we’ll say WTF were we thinking saying $10K taxes was a good deal.

    …at 10K taxes this is nice deal

  89. morpheus says:

    the AK has arrived at my FFL. I am enjoying this vacation. Been doing a lot of yard work. After 4 months of hard work and all this week, the entire property has been reclaimed. All brush and debris piles have been removed. Except the one filled with hornets who continue to mock me. All it took was a couple of stings to put me in my place. I will wait till winter to evict those little bastards!!!

  90. Ragnar says:

    Libtard,
    I’m shocked that you’d be looking for an Xterra. Unless you can explain exactly why you need a body on frame vehicle, it’s an un-libtard waste.
    The Honda Odyssey is where it’s at. Holds 7, plus groceries/stuff, and gives you car-like ride and fuel efficiency. And doesn’t break.
    You are secure enough with your own self-worth to own a minivan. If you think you need the traction of an SUV, put on snow tires in the winter.

  91. grim says:

    92 – Wife says Odyssey, I say Flex (it’s as close to a minivan as my insecurity will allow).

  92. Painhrtz - I am a meat popsicle says:

    grim wife would rather be dead than own a mini van. Ragnar Lib/Gator already have an X.

    With the exception of the Grand Cherokee those unibody lifted minivans are pretty much useless for anything other than bad weather on roads. the again I use my trucks like trucks so I guess I am the exception.

  93. JJ says:

    Honda minivan is for jersey reststop still in the closet fruits. Plus men dont drive kids around, get a Porsche 911 or a wrangler, some car that says your balls still work and you are straight

  94. grim says:

    Finding a truck the great dane will fit in isn’t easy, most SUVs today have pitiful behind-the-last-row space, and even worse headroom. Whatever happened to the good ol’ bronco. Tahoe, Suburban, Yukon, but those all cost 50 grand.

  95. Jill says:

    #57: The only reason to refi for me would be flexbility in the monthly payment if something should happen to our income…probably not worth it.

  96. Comrade Nom Deplume says:

    Really Strange Tax Fact of the Day:

    I was doing research on tax havens and trying to determine if there were advantageous countries that had tax treaties with the US. In the course of this research, I noticed something astounding.

    We have nearly no treaties with South American countries, not even countries we are trying to get trade deals with. But there is one South American country that has a tax treaty with the US since 1999.

    Venezuela.

    http://www.irs.gov/pub/irs-trty/venezu.pdf

  97. Comrade Nom Deplume says:

    [64, 68] lib

    I am pricing the pilot and the acadia, and it is looking like the pilot. Basically a clone of my Highlander. Will look to see what the lease buyout is on the highlander but the wife doesn’t want to keep it (afraid it will start blowing parts now that it is off warranty). Only question now is own or lease.

    As for depreciation, I thought you couldn’t take accelerated depreciation on real property (i.e., house–can’t depreciate land usually). But I should check that before commenting.

  98. Anon E. Moose says:

    Nom [61];

    If not for family needs, I kinda like that house. Not at 10k taxes though. I just like the style.

    It’s a got a real “New Englandy” curb appeal; that’s probably what’s pushing your buttons.

  99. yo says:

    2012 Non-New Jersey resident at Rutgers cost $37,805 with room and board

    $13,073 for a commuter $24485 with room and board

    $333 per credit for part time student

    http://admissions.rutgers.edu/Costs/TuitionAndFees.aspx#1

  100. Comrade Nom Deplume says:

    [100] moose

    Actually, it has more of a cottage feel to it. I could see myself retired in a house like that.

    Of course, these days, you have to keep the kids’ rooms open so that they can live there until they are 35. Oy.

  101. Comrade Nom Deplume says:

    Apparently, there is a rare Blue Moon upcoming. So hoist a beer for it.

    http://www.cnbc.com/id/48826999

    Personally, I thought they should put Neil Armstrong on the label. Will be laid to rest on the Blue Moon. Very fitting.

    Spent a good part of Tuesday explaining to my daughter why Neil Armstrong was Daddy’s hero when he was her age, and that he had models of the Saturn V and LEM, posters of the Apollo 11 astronauts in his room, and a space helmet that he and her uncle wore when playing. I am not sure she got it.

    Will be enjoying a blue moon in memory of Armstrong. Neil, not Lance.

  102. The Original NJ ExPat says:

    [93] grim – I’m with you. If I needed mini-Van seating I’d do a Flex with the EcoBoost engine. Direct injection combined with twin turbos is a match made in heaven. No turbo lag, the power and torque of a big V8 with the fuel economy of a V6.

    92 – Wife says Odyssey, I say Flex (it’s as close to a minivan as my insecurity will allow).

  103. The Original NJ ExPat says:

    [102] Q. What’s the difference between Neil Armstrong and Michael Jackson?
    Answer: Neil Armstrong walked on the moon,
    Michael Jackson had $ex with children.

  104. Just McDullard says:

    No more Prof. McDullard [been so for a couple of months].

    Q: How long does it take a 40 year old Ph.D. to get a temporary IT contractor position?
    A: One year!

    I will most like be in the bottom 10 percentile of qualifications, accomplishments, intelligence, etc., in this place, but … YES! YES! YES! I did it! I am going to be a very small fish in a very big pond, swimming along with the dolphins, the sharks, and the whales — and here, the big fish often don’t eat the small fish.

    Stu, I’ll give you the details at the MLIC meeting. Nom already knows part of the stuff. This means that the Goog interview, if it happens, will just be a trip to NYC for free lunch and a nice chat (today’s phone thing went well from my perspective, so I think there is some chance that they will call for an in-person interview; the guys here know it and are fine with me going for a day — *IF*, and a big IF, I get invited). It can be a nice plan B if the stuff here doesn’t work for some reason.

    It has been very painful, quitting a State job, with a kid coming due end of Sep, no benefits, no traction, no light at the end of the tunnel, just a crazy hope that something will work, and a belief that even if nothing works, I will be able to work really long hours at a gas station.

    I’m simply so grateful… This is a way bigger deal for me than the purchase of my home…

    The best perk of the job: I can stare at “Shannon’s bust” every day for however long I want!

  105. Juice Box says:

    Grim, Great Dane! Yikes I hope you bring a shovel on dog walks. I once owned a pure breed red nose pitbull, that weighed more than ny GF at the time, some dogs really need potty training.

  106. grim says:

    … and my boxer (he is the little 65 pounder in this picture):

    Spooky & Lex

  107. Ernest Money says:

    Tell your kids to load up on debt, then go off grid when they graduate.

    Most kolledge grads pretty much do this right now.

    Every gubmint on the planet prints worthless scrip, while consciously borrowing as much of that same worthless scrip as they can secure. Only problem is…none of these gubmints has any intention of paying off their debts.

    BC Bob had it right four years ago: print and repudiate.

    This whole mess ends in shooting and tears.

  108. relo says:

    105: McD,

    Congrats & good luck. Nice to hear. Remember though, you didn’t do that.

    Grim, nice pooch.

    We had a minivan when we were first married. Down the shore on vacation some kid (teen) dubbed it the “super duper loser cruiser”. I got a chuckle out of that, then told him to give me a call when he gets his first whiff.

  109. Thanks for the sensible critique. Me & my neighbor were just preparing to do some research about this. We got a grab a book from our area library but I think I learned more from this post. I’m very glad to see such great info being shared freely out there.

  110. bag artcile says:

    Pretty decent post. I just stumbled upon your site and wanted to say that I have in reality enjoyed reading your web site posts. Any way I’ll be subscribing to your feed and I hope you post again soon.

  111. AG says:

    Re: College tuition,

    That which can’t be sustained won’t be. It’s unfortunate that every demographic gets caught up in one bubble or another through no fault of their own. Those with young kids shouldn’t lose sleep over college costs. By the time the youngsters are 18 we will be operating under a new system.

    Spending 250k to send your kid to school is laughable. When I went to school (late 90’s) it cost 10k a year for tuition and room and board.

    I suspect in 5 years or so we will laugh at those that paid bubble tuition prices just like we laughed (or in my case cried) about paying bubble prices for a plot of over taxed land with a wooden shelter on it.

  112. AG says:

    That being said,

    It is important to educate you kids that these student loans are not dischargeable through bankruptcy. With capital controls looming it is not unrealistic to anticipate things such as passport confiscation for unpaid student loans.

    This reminds me of something. George Washington’s best soldiers were indentured servants. These were the guys that stuck with him through Valley Forge. Most of the colonists that fought on principal disbanded and returned to their farms after the defeat in Brooklyn in 1776. The indentured servants, however, persevered for the promise of 20 oz of gold and 1 acre of land. They had a vested interest in the outcome of the conflict.

  113. Just McDullard says:

    AG, there are quality free online classes (coursera, udacity, khan academy, etc.) that beat most of the corresponding courses at universities handily. I think tuition costs should start falling in 5 to 10 years time frame.

  114. Just McDullard says:

    relo, thanks… it’s been a pretty tough slog.

    Now, I can get to Obama 2012 campaign, though the dilemma is, do we choose a guy that says, “let the uninsured die”, but passes a good health care law in Mass, or a guy that says “fight the fat cats” and retains the same guys to run the show on wall street. Choices, choices.

  115. Howdy very cool website!! Guy .. Beautiful .. Superb .. I will bookmark your site and take the feeds additionally?I am happy to search out a lot of useful info right here within the publish, we’d like develop more techniques on this regard, thank you for sharing. . . . . .

  116. I relish, result in I found exactly what I used to be taking a look for. You have ended my four day lengthy hunt! God Bless you man. Have a nice day. Bye

  117. Hello can I exemplify some of the facts from this mail if I victual a link back to your site?

Comments are closed.