An opinion piece from the Hammonton News:
2006 property tax relief was only a mirage
The state is between a rock and a hard place.
On one hand, tax revenues are way down, and the state faces a $6 billion deficit next year because of the recession. On the other, there’s a gigantic state government and hundreds of local governments, school districts and other public entities in this state that take tens of billions of dollars to operate.
Facing dire economic times, it should surprise no one Gov. Jon S. Corzine is looking at doing away with property tax rebates most New Jersey homeowners receive. The rebates cost about $1.7 billion, and the state faces a $6 billion budget deficit for 2010.
But just because the recession is so profound, lawmakers shouldn’t be let off the hook for their failure.
If they had done tax reform the right way — by reforming government spending — the deficit might not be as large. Lawmakers might not have to increase property taxes, which is what taking away the rebates effectively would mean.
When they approved rebates in 2006, state lawmakers said they had a permanent solution to our highest-in-the-nation property taxes, which now average $6,800 annually for every homeowner.
The lawmakers instituted rebates — 20 percent back for households that earn less than $100,000; 15 percent back for households earning between $100,000 and $150,000, and 10 percent back for those earning between $150,000 and $250,000.
From the moment lawmakers approved rebates, we had doubts. How could rebates that could be taken away at any time, such as during an economic downturn, constitute permanent property tax relief? Only lowering property tax rates, so people actually pay less, would constitute permanent relief.
The rebates already are pared down for those in the $100,000 to $150,000 range, and they’re gone completely for households that earn more than $150,000. That happened after they were just a year old. Now, the rebates could be gone for everyone by next year.
If that happens, it will be as if our lawmakers did nothing after all their big talk in 2005 and 2006 about lasting tax relief. They didn’t fundamentally change our government and make it smaller and less costly, and they didn’t give us permanent property tax relief. They will have failed us.
From Bloomberg:
Toll Reports Sixth Straight Loss as Recession Deepens
Toll Brothers Inc., the largest U.S. builder of luxury homes, reported its sixth consecutive quarterly loss as the deepening economic recession deterred wealthy buyers.
The fiscal first-quarter net loss narrowed to $88.9 million, or 55 cents a share, from $96 million, or 61 cents, a year earlier, the Horsham, Pennsylvania-based company said in a statement today. The loss was bigger than analysts had forecast. Revenue slumped 51 percent to $409 million.
“New Jersey Gov. Jon S. Corzine vowed Tuesday to preserve property tax relief programs that help keep senior citizens in their homes in the doomsday budget he’s preparing for the Legislature. The governor, who is running for re-election in November, promised not to gut property tax rebates for seniors, and he said Senior Freeze, a program that caps property taxes for those on fixed incomes, would be spared.”
http://www.courierpostonline.com/article/20090304/NEWS01/903040348
250-400,000 a year might not be “nothing” but it does not make one “rich.”
At this level, one can buy nicer shirts and suits and cars and houses and whatnot but for the self-employed amongst us we het hammered with taxes. At this income level we also need to pay the full freight for colleges or private schools, as there is no “need.” Would I prefer Mrs Shore and I to be back where we were years ago? No way. We are head and shoulders above where we were and I am glad of it. That said, we are not wealthy; every spare dollar goes towards retirement savings (no pensions here), towards college for the little Shores, and the like.
i think there’s way too many factors at play here to make a blanket statement like 250k can make a family rich or poor.
do you have kids?
are they in college or infants or high schoolers?
what’s your mortgage like? why is it that high?
what cars are you driving?
it’s really a case-by-case basis. athletes make millions … are ALL of them rich? MC Hammer made millions … went broke quickly.
i’d recommend ‘the millionaire next door’ on how to ‘wealthy’ quicker. i’m sure you already know the tips – don’t drive new cars, live within your means, no CC debt, save, save, save.
if you can’t afford it, don’t buy it.
4th!
“Applications for loans to buy U.S. homes and to refinance existing mortgages fell for the second straight week, the Mortgage Bankers Association said on Wednesday, as consumers awaited for specific details on President Barack Obama’s housing stimulus plan.
An unwillingness to buy a fast-depreciating asset, a supply glut and swiftly evaporating jobs continue to contribute to the housing market swoon, analysts agree.”
http://www.cnbc.com/id/29505473
“Want lower property taxes? Leave.”
I like that one.
No other way around it.
SAS
I missed my 5 o’clock bean.
that coffee in shelter sure does suck, but I really appreciated it after waiting 30 minutes for it.
SAS
“Illinois’ precarious financial picture worsening, report warns”
http://www.chicagotribune.com/business/chi-mon-illinois-finances-0302-mar02,0,3727667.story
-Unfunded debts total more than $116 billion, or $10,000 per resident, and the sum could increase by as much as $10 billion annually.
SAS
“NY pension fund losses continue”
http://www.newsday.com/news/local/wire/newyork/ny-bc-ny–retirementfund0302mar02,0,3601238.story
“Long Winter Proving Costly for New Jersey”
http://www.1010wins.com/Long-Winter-Proving-Costly-for-New-Jersey/3953665
http://www.ritholtz.com/blog/
AIG – Why are we paying to bail out this giant hedge fund?
OT: I’m very excited that the WSJ now has a sports section!
“More Than 8.3 Million U.S. Mortgages Underwater as Values Sink”
http://tinyurl.com/b8cxkf
“We have way too much supply and not enough demand,” Sam Khater, senior economist for First American, said in an interview. “People aren’t going to purchase a home as long as prices keep falling, and someone who is worried about their job isn’t going to purchase a home either.”
Toll Brothers … today reported a FY 2009 first quarter net loss of $88.9 million … which included pre-tax write-downs totaling $156.6 million.
…
Joel H. Rassman, chief financial officer, stated: “Given the numerous uncertainties related to sales paces, sales prices, mortgage markets, cancellations, market direction and the potential for and size of future impairments, it is particularly difficult in the current climate to provide guidance for the rest of FY 2009. As a result, we will not provide earnings guidance at this time.”
…
FY 2009’s first-quarter cancellation rate (current-quarter cancellations divided by current-quarter signed contracts) was 37.1% …
Toll’s normal cancellation rate is about 7%.
Why does everyone in America want to say they are a part of the middle class and reject the label of ‘rich’? If you are at the top 10% tier of income then you are no longer in the middle. It doesn’t make you a Rockefeller but you are not an average person in America, let alone the rest of the world.
Well before leaving the Stu-Gators are appealing, appealing, appealing. Started working on our filing in earnest last night. I did speak with an attorney last night who specializes in residential appeals, hoping it would make sense to hire him since he works on contingency. Then I learned the fine print – you have to pay for an appraisal by one of his recommended appraisers (can we say kick back?) – total cost $750, pay the county filing fee – $100 and then he gets 1/2 of your first year savings as his fee if you win. We’re guessing our total savings will be between $1500 and $2000 this year, so that’s a big chunk of change to hand over.
I think in this down market an expensive pinch hitter is unnecessary. I’m gonna take a swing myself at that nice, fat pitch right over home plate.
Fed chief hits out at AIG ‘hedge fund’
AMERICAN Insurance Group behaved like a hedge fund, rather than an insurance company, costing its shareholders, then taxpayers, billions, an uncharacteristically emotional Federal Reserve chairman Ben Bernanke has told the US Congress.
Under fire from politicians over the latest $US30 billion ($A47 billion) infusion into the ailing insurance giant, Dr Bernanke said nothing had made him more angry during the financial crisis than the episode with AIG.
“AIG exploited a huge gap in the regulatory system,” he said. “There was no oversight of the financial products division. This was a hedge fund, basically, that was attached to a large and stable insurance company.”
http://seekingalpha.com/article/123941-let-aig-go-bankrupt-not-america?source=email
(17) SG – I’m looking for folks talking about AIG this AM – Here’s another…
Jim Rogers
By Paul Krugman,
Zombie financial ideas
And the insistence on offering the same plan over and over again, with only cosmetic changes, is itself deeply disturbing. Does Treasury not realize that all these proposals amount to the same thing? Or does it realize that, but hope that the rest of us won’t notice? That is, are they stupid, or do they think we’re stupid?
I don’t know which possibility is worse.
Bernanke Angry AIG Operated Like A Hedge Fund
In a case of the pot calling the kettle black, Bernanke Says Insurer AIG Operated Like a Hedge Fund.
http://globaleconomicanalysis.blogspot.com/2009/03/bernanke-angry-aig-operated-like-hedge.html
from last night,
I am with shore and barbara. As someone who is self employed, you get double dipped by the feds at tax time.
if the average joe had to write a check for the full amount of taxes every year there would be a tax revolt.
Civil Unrest begins…..
http://news.yahoo.com/s/ap/20090303/ap_on_fe_st/odd_mcgruff_roughed_up
http://www.portfolio.com/views/blogs/market-movers/2009/03/04/how-big-is-aigs-life-insurance-arm
Felix Simon in AIG –
“How Big is AIG’s Life Insurance Arm?”
Some erroneous reporting the day before to make the case for systemic risk?
Now I need to search out that article…
How Did Goldman Hedge Its Exposure To AIG? (GS, AIG)
Cindy HEHEHE
Bernanke and friends knew exactly what was going on at AIG and had no problem with it as long as everyone was making money. now that it blew up and things are getting a little hot under the collar, they are looking for a scape goat.
http://www.nytimes.com/2009/03/03/business/economy/03sorkin.html?_r=1&ref=business
The Sorkin article Felix refers to where he wrote..
“In the United State, A.I.G. has more than 375 million policies with a face value of 19 trillion.”
Not so – see #23
Oil exec once said his company doesn’t pay taxes, it just collects them on behalf of the government.
The MBAs of the Meltdown – Where Did Those Bankers Go to Business School?
Harvard Business School, NYU Stern, Cornell … What are they teaching at these places?
Harvard – 9 Stars
New York University – 3 Stars
Cornell University – 2 Stars
When it Comes to Naming Wall Street’s Worst Invention Ever, Credit Default Swaps Continue to Fill the Bill
Mike Morgan is right. China is in riot situation. People are grabbing whatever left after fire (sale).
http://www.bloomberg.com/apps/news?pid=20601087&sid=a4y1c5VldFZs&refer=home
(29) SG – excellent – Thank you for posting.
Gator,
I successfully appealed our assessment a few years back. My approach, hammer them with stats, charts, photographs, etc. I put together a powerpoint presentation that attacked the town’s characterization of comperables to show how we were in fact had a less valuable property. I had sprewad sheets, film clips, the works. Why? I din dot expect the analysis to win them over. What I did accomplish was communicating to them that I would not be a pushover and that were they not to grant my appeal they would have a catfight on their hands all the way through the ultimate appeal process. Although I knew the process, I asked about each step of the appeal process beyond the appeal conference, al the way through the courts.
Being sensible people and knowing that few other residents were likely to make the process so difficult for them, the town relented and we still have the lowest assessment in our area. Rightly so, I still assert.
The powers thsat be in most towns will follow the path of least resistance. Offer some resistence and demonstrate that you are likely to take them to the mat and you are likely to gain if only to persuade you to leave them alone.
About taxes:
We were just looking at some homes in the southern OBX, the so-called “Crystal Coast.” These are homes in an area kinda like the area from Bay Head to Mantoloking Shores. We were not looking for a giant place, big for the sake of big does not appeal to us; they were 1,300-2,200 beach houses with views of both the ocean and the sound, on some of the highest ground (high being a reelative term on a barrier island), one was a duplex with 3 BR in one unit and 2 in the other, currently used for rental. The property taxes did not reach $3,000 on any of them.
Nom, Grim, Clot, etc:
What are your thoughts about the upside and downside of setting up an LLC for the purpose of buying a property, like the ones i described above in the OBX, for the purpose of income-generation. Of course, I would like to retain the ability to use the place a few weeks a year, if only during the period of performing maint and upgrades.
Jim Chanos says we’ll be seeing orange jumpsuits. Yay!
“In the United State, A.I.G. has more than 375 million policies with a face value of 19 trillion.””
What is the downside of cancelling policies? It happens all the time, no?
Gator- good luck w/the appeal. Sounds like you have been working systematically to gather the evidence. Aim & shoot! ;)
interesting…
“China’s defense budget to grow 14.9% in 2009”
http://www.chinadaily.com.cn/china/2009-03/04/content_7535244.htm
“If you are at the top 10% tier of income then you are no longer in the middle.”
It depends on how one draws the curve. The problem really lies in tha fact that we are not willing to acknowledge that we have a sizable “lower class” (poor population). There are many people who should be classified as poor who hang onto the belief they are middle class; in the final analysis this hurts them because they get lumped in with folks who are far better off and, thus, dilute their political power. The real sin is how many people live on so little and get treated as if everything is okay because they are “in the middle class.”
It really is okay to be poor, and to have been poor. I know, I was. It is hard to climb out of the hole into the middle class until one first admits tht one is not there yet.
SAS,
Invading Central Asia is not cheap.
I am back on line at the shelter,
realized I wanted a second cup of coffee.
I know… I know.. I am selfish & greedy for wanting another cup.
I walked by the sbux on the way, long line in there. Those damn wealthy people paying 2-5 bones for a cup of jo. I sure hope they appreciate that coffee paying so much damn money.
Brr…sure is cold out here.
glad this guy next to me has a big shopping cart full of beer & soda bottles. It blocks the wind real good.
well, I better go, my fingers are getting numb.
SAS
Maybe Dick Cheney better head to an undisclosed location:
Maybe Dick Cheney better head to an undisclosed location:
http://news.yahoo.com/s/nm/20090304/wl_nm/us_warcrimes_sudan
(36) Shore – You need to go back and read the Felix Simon post at 23. He is saying the Sorkin numbers were wrong. The 19 trillion quoted as AIG face value for life insurance policies is actually the face value of ALL the life insurance written in the U.S.
Sorkin is trying to make a case for systemic risk and Simon is saying AIG’s life insurance and retirement services policies combined are about one trillion.
Gator,
I think you have to decide what the $$ would get you. In my case my lawyer was a personal friend of the town tax assessor and believe me, it helped. We are way below our neighbors now. Without that advantage I am sure I could have done OK but for me my $1000 yearly savings cost me $500 and the time and expertise to make my case would have eaten up too much of my time to make a productive argument to the town board on my own. The $500 ended up being well worth it. You will hopefully have a larger yearly savings and thus more to think about.
now off to the recycle center with my new friend.
this guy I just met in line is real cool.
think we might go over to the park take a nap for awhile.
see you later,
SAS
From last night on the extra taxation of the self-employed:
This is over 7% additional tax. For those of us who are self employed, we live with taxes in a way most people do not; taxation is in our faces and then, speaking for all of us, when we see government mismanaging its finances and then looking to us to fill the gaps (yes us and not the truely rich, whao are able to hide their wealth) it tends to stick in our craws.
(25) Kettle
You say Bernanke knew exactly what was going on at AIG. The reason this is so troubling to me is that the hedge fund side basically preyed on people using the AAA rating of the insurance business. So the rating agencies didn’t care? They knew what was going on too and went along with it?
Cindy,
It seems there was money to be made handing out AAA ratings. Just like the Chinese and tainted milk. As long as money is flowing in, people seem to lack ethics. It is a sad state.
Bank of America Charges May Surge as Mortgages Marked to Market
March 4 (Bloomberg) — Patricia Greenberg’s townhouse in Irvine, California, was losing about $10,000 a month in value when she received a letter in February 2008 that looked too good to be true: An investor was offering to cut her $472,000 mortgage by 26 percent and her monthly payment by a third.
“I didn’t want to get involved in a scam,” says Greenberg, a cosmetics saleswoman for Orlane Inc., who had bought the house with no money down eight months earlier.
It was no ruse. New York hedge fund manager Ralph DellaCamera Jr. says he’d purchased the mortgage for 60 cents on the dollar and forced the originator, MLSG Home Loans of Reno, Nevada, to eat the loss. Protecting his investment, DellaCamera lowered Greenberg’s debt to keep her in the home. She now pays $2,400 a month instead of $3,800 and plows some of her savings into upgrading the Cape Cod-style residence.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aoXvQxGD5ChU&refer=home
http://www.wowowow.com/photo-essay/homes-of-bankers-bernie-madoff-154277
An Aerial Tour of the Homes of Bernie Madoff and the Bailed-Out Bankers
So where did all that money go? Here, via VirtualGlobeTrotting.com, citizen journalists provide a peek behind the purported gates of greed
They should have spun off the hedge fund – insolvent – and tried to save the insurance component right off the get go. I feel sort of like this is a view of what is happening to our country as a whole.
By refusing to cut off the gangrenous part – the patient must die.
BofA, JPM, Wells and many other institutions are probably not as bad off as C – but because we HAVE to save C, because we have to save AIG – everyone else must come down.
This is insanity.
Can i get an address for
2626987
thank you
Cindy, 49
Yes, that is exactly what the deal was
I am very busy today, but not too busy to see the latest ADP Employment Report.
Brace yourselves…
Released on 3/4/2009 8:15:00 AM For February, 2009:
Previous -522,000
Actual -697,000
Highlights
Most indications point to what may be a monumentally poor employment report on Friday. ADP is calling for a drop of 697,000 in private payrolls, a call that will pull expectations even a bit lower going into Friday. There was no reaction to the news in the financial markets.
Jobless claims have been rising to severe levels and Monday’s ISM manufacturing employment index fell to a record low. But Challenger’s job-cut count, released earlier this morning, actually showed improvement in February. The ISM’s non-manufacturing report, which will include an employment index, will be posted at 10:00 ET and will firm up final expectations for Friday.
Should Short ETFs be Banned?
Tuesday March 3, 9:34 am ET
By Ron DeLegge, Editor
SAN DIEGO (ETFguide.com)
“Before you believe the propaganda of agenda pushers who argue that short ETFs are harmful to the stock market, look at the facts. Fund providers like ProShares, DirexionShares, and Rydex Investments each offer ETFs that play both bull and bear markets, not just bear.
Critics who complain that the UltraShort Financial ProShares (NYSEArca: SKF – News) is exerting downward pressure on financial stocks fail to mention the Ultra Financials Fund (NYSEArca: UYG – News), a long leveraged financial ETF, has an asset base more than double SKF! Currently, this pair of ProShares financial ETFs is overwhelming net long financial stocks.
O’Neill observes a similar trend at his Boston-based firm, whose ETFs were launched late last year. ‘Each of the Direxion Shares long and short ETF pairs is, and has been, for the majority of their brief existence, net long.’ He adds, ‘Although we believe it would be perfectly fine and consistent with healthy markets if the pairs were net short, the fact is that they are net long, meaning they’re adding to market demand.’
Are you using Short ETFs the Right Way?
Depending on your unique investment goals, leveraged and short ETFs may or may not be right for you. If you decide to use these specialized ETFs within your investment portfolio it’s important that you use them correctly. Using a hammer to do the job of a chainsaw isn’t very effective. Likewise, if you’ve determined that short ETFs are not a good fit, realize that you still have strategical choices. In our March ETF Profit Strategy Newsletter, we just highlighted several alternative ETF strategies for profiting and hedging during a bear market.
It’s sufficiently clear that more education about leveraged and short ETFs is needed not just among the investing public, but among financial experts. The people that should understand leveraged and short ETFs don’t.
To that end, it would be a huge misstep for the SEC to act against short ETFs. The already SEC faces many immediate and larger issues that need priority – and banning heavily regulated financial products like leveraged and short ETFs is not among them.”
http://biz.yahoo.com/etfguide/090303/192_id.html?.v=1
Clot: What’s up with China today? Was there a tax event in FXP? Down 18% this morning!!!
Cindy 53,
It isnt that easy (well not for TPTB). if TPTB let the hedge fund portion of AIG go down then you have systemic counter party risk due to the huge amount of money they have that is tangled with banks around the world.
Remember that the entire market is essentially a confidence game at this point. If the US government lets the hedge fund portion go down without the US government (i.e taxpayer) backstopping investor losses, then you could see a substantial and sudden pull out of investor money from a number of very large and very insolvent companies such as Citi, BAC, and numerous other such as other insurers that are likely in trouble (MET?). The current situation is so fragile that as soon as investor believe that the US government will allow institutions to fail, a lot of money will leave then system and it will probably be impossible to prop up banks, AIG, GE and others at that point.
While this does need to happen before things can get better, TPTB are not willing to do that and hence will not allow the hedge fund portion of AIG to die. At least not without backing the investors using taxpayer money.
US housing crisis ‘exaggerated’, focused on only four states
While foreclosures have booted millions of Americans from their homes, the study from the University of Virginia shows the trouble is mostly focused on four states — California, Florida, Arizona and Nevada — where home prices were the most overheated in the US housing boom.
In the University of Virginia study of 50 states, 35 metropolitan areas and 236 counties, the analysis indicated that “66 per cent of potential housing value losses in 2008 and subsequent years may be in California”.
Then there was another 21 per cent in Florida, Nevada and Arizona — meaning those four states made up about 87 per cent of national declines.
“Damage to the balance sheets of large banks and (insurer) AIG occurred not mainly from losses on foreclosed residential mortgages, but because of borrowing short-range to buy long-range derivatives and from selling credit default swaps insuring derivatives backed by mortgage payments,” they write. “These financial manipulations had high-speed forward gears, but when the housing bubble burst, the banks and AIG discovered they had neglected to create a reverse gear with which they could separate foreclosed properties from some forms of mortgage-backed securities.”
Stu 58
smoke and mirrors my friend. China wont get wacked for real until later this year. Look at this as a new buy in opportunity. (All disclaimers per US janitorial regulations, USJR 23476)
March 4 (Bloomberg) — Stocks rose around the world, commodity prices rallied and Treasuries fell on speculation China will broaden efforts to boost growth in the world’s third-largest economy. The Shanghai Composite Index jumped the most in four months.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a4y1c5VldFZs&refer=home
(59)Kettle – Bernanke sure doesn’t want to let us know who those counterparties are. I thought I heard Ron Wyden from Oregon ask him directly yesterday.
I enjoy learning more and I hate learning more. Gotta run.
stu,
if we are lucky, we might go under 30 again.
[34] shore
Whether to use an entity or not usually was determined by non-tax factors. But the tax rules on 2nd homes have changed recently, and that is affecting the analysis. I have not recently looked into that, and would not mind developing it deeper, but I also have to be mindful of doing what appears to be practice of law on this board.
“if we are lucky, we might go under 30 again.”
Been praying for 29 for a while!
Discussion about being rich above 100K… or top 10% population.
Last year I was above 100K, this year no bonus for me or anyone else for that matter…
So let me tell you:
I have a friend who lives mid-west. His salary 5K below mine.
Also one kid, wife does not work as well..
He bought 2300 SQFT ranch, 4 bedrooms/3bath, on 2 acres.
He paid 145K for it. beautiful house. beautiful area. Good schools.
His PITI before (deductions) is at 900$. yes, 900$/month. (with about 25K down payment).
Now lets look at my situation – salary 5K higher.
so I am richer, right?
1500$ month/rent for old 2/1 ranch in central NJ. double cost of car insurance. higher state taxes. also wife does not work, and a baby.
By my calculation he has about 5K/year more money left after rent/mortgage and all taxes. IN NJ as I said before cost of EVERYTHING is higher as well.
Bit he was under 100K and I was above 100K last year!!! So he is not rich and I am rich???
Leaving NJ looks better and better…
Getting a similarly paying (lets say -10% of what I am paid here) job might be hard in this economy, but I have started looking.
Good luck to all.
P.S. I do nto mind high cost of housing or cost of living. It is taxes which kills me as I believe all homeowners will be fleeced by this state until they squeal in pain.
Gator (16)-
That lawyer is running a scam.
” squeal in pain.”
Or squeel like a pig. Is that a banjo I see King Jon playing?
Cindy,
i dont know if this has been unraveled yet, but i believe that Goldman Sachs was a huge counter party to AIG when they were initially bailed out. AIG going down could have wiped them out.
So the AIG bailout was in effect a mutual AIG/Goldman bailout. GS may have unwound their AIG exposure since then, i do not know, maybe clot does?
Kettle1 – 2626987 305 S Maple Ave
Shoreguy – I am poor. Is that the first step in a 10 step program?
KL
I do nto mind high cost of housing or cost of living. It is taxes which kills me …
You don’t consider the tax burden to be a component of the high cost of housing and the high cost of living? Whether you pay money to a lender or a government, it’s still money out of your pocket. Either way it’s the reason you’re spending more than you think you should.
http://www.virginia.edu/uvatoday/newsRelease.php?id=7838
Shore (34)-
I’ve always liked the idea of doing stuff like this through a self-directed IRA or Keough. I think the LLC isn’t really necessary. In an LLC, you’re personally the guarantor of all debts and liabilities, anyway.
KL,
Indeed.
Stu,
my personal opinion is that we could see some good fireworks out of china in late 3Q or early 4Q when the crash in chinese GDP and exports cant be easily hidden. at least thats what my mop tells me.
Disclaimer: my mop has been wrong a few times
PS- I am not an attorney. You should consult an attorney on all legal matters.
KL
THANKS!
Clot, Nom:
May one purcase Re as part of a Solo 401(k), IRA, etc?
purchase even
Page 21 contains data for NY, NJ counties,
New York MSA Housing Value, Family Income, and Foreclosures
Ratio of Housing Value to Median Family Income
Bergen, NJ 5.0
Essex, NJ 6.4
Hudson, NJ 7.4
Hunterdon, NJ 4.0
Middlesex, NJ 4.2
Monmouth, NJ 4.7
Morris, NJ 4.7
New York 11.7
Passaic, NJ 5.9
Somerset, NJ 4.2
Sussex, NJ 3.8
Union, NJ 5.5
Shore (44)-
Will it take them as long to pinch this Sudanese guy as it did to get the Serbian last year?
Wake me up when The Hague has its own hit squad.
I’d like to see Cheney on the run from that…
I’d like to see Cheney and Jack Bauer get locked in a room together.
A room with an extension cord and a wall socket.
Drat. Moderated for J@ck B@uer reference.
Shore/Mike/Clot –
Last year the town’s attorney told me that I was the most well prepared Pro Se appellant he ever dealt with. Not sure if I was super prepared or if the rest of our neighbors thought they could win simply by filing and then yelling and screaming that they were overtaxed.
I will have to work on a power point this year. My strategy last year was to focus on comps that the town valued higher than my home but sold for less than the assessment. It was pretty easy because the valuation company did a pretty crappy job. I pull all the MLS listing detail as well as the pictures and then also pull the detail page from Monmouth County’s db so that I can get SF/Lot Size and Assessment Data. I also search the Monmouth County DB for sales that I may have missed from the MLS. We then bombard them with PDFs and spreadsheets.
This year the market has completed collapsed for non-updated multis. Unfortunately some of our best comps have gone UC in Jan/Feb of this year, with close dates expected just before the county tax board hearings. I am still going to try to use them in settlement discussions. Even if we don’t get the full benefit of them this year, they will certainly be part of next year’s filing.
I think this year, my pet project will also include showcasing the large number of high end properties in town that continue to sell for well above assessment and hammering home the point that the town is giving these homeowners tax breaks subsidized by senior citizens who live in dilapidated multi-family properties. Our senior neighbors are overpaying taxes by about $3k on average while my cousin who works for GS is paying about $9k less than he should be in the estate section.
Cindy (53)-
It is the essence of zombie banking. Semi-dead parasites, feeding on society and the US economy. The best the zombie can hope for is to maintain himself in a zombie-like state, but eventually, the parasite/zombie runs out of hosts.
ge down 16%. nuts.
Check GE out. Hey Kudlow, make sure that you have some mustard seeds left for your boss.
Stu (58)-
All I see is FXP = 3 handle = buy more.
S&P Calls for Greater Regulation on Credit Ratings
(Bloomberg) — Standard & Poor’s called for more regulation of credit-rating companies, recommending a global framework that would eliminate potential conflicts of interest, increase transparency and create an industry code of ethics.
New rules should ensure ratings are independently derived and unbiased, the methodologies used are disclosed, and regulators are given the authority to sanction companies if they fail to comply with “appropriate policies,” the unit of New York-based McGraw-Hill Cos. said today in a white paper outlining 10 goals for policymakers.
More at: http://bloomberg.com/apps/news?pid=20601087&sid=a6vbtRVWxOjc&refer=home
Shore (78)-
Yes. As long as you have properly set it up for self-direction with a custodian who specializes in these entities.
Well, we are not alone.
Housing slump hits Shanghai owners
Cool. That could change the calculus a bit.
If GE can hit the zombie zome, BRK-A can go belly-up.
#39
People cling to the idea of being in the middle class even though they are really struggling. I wanted to believe that we were OK when we moved here from the Midwest when we weren’t. I saw everyone around us seem to have so many luxuries and couldn’t understand how when I was not able to buy grapes for our kids unless they were on sale.
I have finally accepted that we will never be able to buy in NJ. I have run the numbers a thousand times and renting keeps making more sense for us. I just have a thin skin and have trouble with other peoples comments about our renting status.
gATOR,
In additionto that, I would look at the comps to your house and then make it clear that your home is NOTHING like theirs. THEY are so much better. Yadda, yadda.
Clot, the rats have responded:
http://njexperts.com/2009/02/26/but-how-do-i-know-if-the-nj-real-estate-market-has-hit-bottom/
If BRK-A goes belly up, then I’m definitely interested in a share of the Nompound.
[78] shore
You can put RE into an IRA. But if you are using that RE yourself, it may be recast as an early withdrawal. Rental property should be fine, however. And you get added protection from creditors.
As for 401(k), that depends on the plan document. Since you are a solo, you can amend the doc. to permit it. I am not aware offhand of any guidance saying you can’t do it.
If you are serious in going that route, get my info from Grim. I don’t want to be advertising on his site, so I won’t go into any more of a pitch.
Renter: I moved from Midwest to NJ and can understand your comment.
NJ is biggest NIMBY state. Most folks here are pretty mush show off. There is nothing real underneath. I have yet to figure out any benefit to society from much talked about NYC FSI industry.
“I just have a thin skin and have trouble with other peoples comments about our renting status.”
If people criticize someone else because that other person is either frugal or manages their income effectively, sc-rew them. Achieving a certain level of income does not grant one character, virtue, etc., as is well demonstrated by the behavior of so many people who have achieved vast wealth. Many of the most admirable people who ever lived never drove a Hummer, had a 9,000 sq. ft house, a private jet, and the like.
If one lives within their means, good for them. I would not worry about what people say.
Timmay and Barry’s “Making Home Affordable” refi guidelines:
http://www.ustreas.gov/press/releases/tg48.htm
Links to a summary, detail and fact sheet are at the bottom of the above-referenced page.
Nom,
Thanks. I just never gave thought to doing this before. I went to cash some time ago and as opposed to just adding more cash to low-paying safe accounts, this strikes me as an interesting alternative. Even if one of the plans does not allow it, I take it I could open up a different account, transfer some money from one account into the other and then use those monies for the investment RE purchase.
I recall there are rules about how much time one can use a “rental” property before one changes the status of the property. I will need to find out whether those rules change if the RE is purchased under a coprorate structure. My thought is, create a LLC or such, purchase an income property within a tax advantaged account, and use it for income generation. Even if it just broke even, the appreciation of value would seem to make it worth the effort — even mors so if I were able to legally use it a few weeks a year.
Phew! Asteroid’s passing was a cosmic near-miss
Wed Mar 4, 7:35 am ET
PASADENA, Calif. – An asteroid about the size of one that blasted Siberia a century ago just buzzed by Earth. NASA’s Jet Propulsion Laboratory reported that the asteroid zoomed past Monday morning.
http://www.youtube.com/watch?v=psaM7kK5Toc
Chifi,
It had to zoom past. It couldnt get a mortgage.
NY Upstate wants fast trains to NYC.
Fast train: It’s about time
I was able to find a great job working from home last year and we are much better off now! I have learned a lot from this whole experience that I never learned growing up because my parents made life pretty easy for me.
I will work on the “sc-rew them” mentality:)
SG,
Now Amsterdam and Utica will become bedroom communities for NY. Watch out housing prices. Better buy now or forever be priced out of Upstate NY.
This is nice new service.
Cablevision starts free WiFi service
Shore Guy:
“I would not worry about what people say.”
This is the best advice my father has ever given me. Nice to see it repeated here. So in our struggle to define the word ‘wealthy’. The answer really lies in Shore Guy’s profound statement above.
Does anyone on this board know what Warren Buffett meant when he said the next bubble is in U.S. Treasuries? I have some cash in a u.s. treasury money market fund. it’s totally liquid, i could the pull the money out at any time, but could I lose the amount i’ve put in? I’m wondering whether I should just hold cash in a bank savings or money market account?
“I will work on the “sc-rew them” mentality:)”
It is part of the NJ citizenship test. And required for driving on the Parkway.
renter (94)-
Forget money, status and housing. Somebody should’ve told you not to move here if you have a thin skin.
Fortuantely, there are many things you can do to thicken your skin, now that you are here. Try bathing in pickle juice.
I know this has been discussed here quite a bit.
Pew Study Finds States Face $2.73 Trillion Bill for Retiree Benefits – Link to NJ related info
new jersey has done an abysmal job of keeping up with annual funding requirements for its pension system.
And when it comes to retiree health benefits, the state faces bills coming due of nearly $22 billion just for state
employees, and another $36.5 billion for teachers. (Only some states have calculated the latter; in many, the liability
for teachers will appear at the local school district level.) Although New Jersey’s pensions, in the aggregate, are
only slightly less well funded than the 50-state mean, the system has suffered from a number of problems. The state
recently passed several reforms designed to improve its performance and provide better and clearer public disclosure
of the inner workings of the pension systems. On the non-pension side, retiree health benefit costs are substantial and
growing far faster than the rest of the state budget.
Qwerty (96)-
It appears she removed my post from last night.
“The answer really lies in Shore Guy’s profound statement above.”
Well, that a gold watch, a $70,000 car, and a mortgage 7x income.
, the missing punctuation lol
Hey, Sue Adler-
Debate me, bitch. Anywhere, anytime. Print or live. Pick your forum, pick your format.
This offer remains open to you forever.
Clot, Sue “the opportunity is now” Adler has deleted your posting from yesterday.
http://njexperts.com/2009/02/26/but-how-do-i-know-if-the-nj-real-estate-market-has-hit-bottom/comment-page-1/
Fingers in the ears — la, la, la, la, la.
NOW! Clot is clerly prepared for living in NJ.
chifi (103)-
I hope the next asteroid that passes lands on Sue Adler.
Oops, late post.
[110] shore,
True dat.
I tell people that I was exiled from Mass. because I was just too much of an a-hole.
So they sent me to New Jersey, where I seem to be fitting right in.
Another gem from Sue Adler:
http://njexperts.com/2009/02/23/millburnshort-hills-january-home-sales-stats-and-market-report/
She lists 26 Harvey Drive as having sold for 6% below asking, after only 50 days on market.
The house actually sold for 29% below asking, after 135 days on market.
How does she get away with such blatant consumer fraud?
The first time I drove on the Parkway I turned to my husband who was driving and said “You are kidding me!”
http://www.huffingtonpost.com/2009/03/04/igor-panarin-us-will-coll_n_171725.html
I’m sure there is some political motivation behind this, but look at the hole we’ve dug ourselves into.
Nom,
I went to school out of state and when I used to see other NJites on campus it woulf be “Hey, I’m f***en talking to you.” etc. People thought we were about to come to blows when it was all just “Hey, Man. Good to see you.” Albeit in a different language fromthe rest of the country.
Qwerty (123)-
Call her on it.
Hard,
Since we have dug ourselves halfway to China, we might as well keep digging. A tunnel will come in handy for trucking our assets over there to pay our debts.
[101] shore,
My pleasure.
I do know a bit about this. And I am not trying to be coy, but I try to keep my posts out of the legal advice realm, first because I have an obligation to do that, and second, out of deference to grim.
Suffice it to say that you have identified many relevant primary issues. Your situation dictates how you treat it, and in a tax-deferred account, you must take certain measures and there are some important trade-offs and future considerations. So just because you can do it doesn’t mean you should.
Shore (126)-
I always thought the term “fcukin’ a” should be put on the state flag.
[125] shore
I went to a state univ. where we had a lot of out of state NY/NJ students.
They were generally despised. Famously so, in fact.
RE: Call her on it.
The harpy shyster would just delete it.
#126 clot: I just did.
3b (133)-
I just posted 26 Harvey at her blog, too.
Let’s see how long it takes to get deleted.
Shore Guy says:
March 4, 2009 at 11:22 am
Hard,
Since we have dug ourselves halfway to China, we might as well keep digging. A tunnel will come in handy for trucking our assets over there to pay our debts.
Nobody going to pay US debt, nobody.
We eitehr devalue it, through inflation, or default. as simple as that.
if my husband or I lose our job, can we have help with rent payment?
http://www.cnbc.com/id/29508073
Hunter (136)-
Just call make money. Perhaps he’ll give you some Knicks tickets.
Kettle1 says:
March 4, 2009 at 8:38 am
from last night,
I am with shore and barbara. As someone who is self employed, you get double dipped by the feds at tax time.
***************************************
Oh, so many things to say!
1. You don’t get “double dipped”. You just get the pleasure of writing BOTH checks that are always written for a paycheck.
For the “opportunity” of being your own boss, you are also responsible for those items normal paid for by “a boss”. (Just like workman’s comp, liability insurance, etc)
So, yes, you now get to write a check for the boss’ 1/2 of SS and Medicare.
And yes, just like your boss, you can (possibly) make a bigger profit now on your own efforts. Instead of working for $X per year, rain or shine, you can now gamble and try for $Y and reap the bigger rewards.
Like Hobekenite pointed out last night, you are NOT paying double. You *WERE* only paying 1/2 as an employee and your employer was paying the other half.
You didn’t KNOW that your boss WAS PAYING those taxes; you go out on your own and then get slapped with those taxes plus all the other fees, licenses, dues and taxes the boss was paying…
You were unprepared. That’s what is “unfair”.
(If it is so unfair, go back to work for someone else.)
And by the way, “unfair” is health insurance premium deductions. Now there you have a real gripe.
Clot, I like the nets and the bulls, can i pick any team I want, I deserve that
What is going on with this “forced” sovereign wealth fund sales? Anyone hear?
“I always thought the term “fcukin’ a” should be put on the state flag”
In NJ it is like blue jeans: it goes with everything.
Shore 127.
Cool! then we can build the gravity train!
http://en.wikipedia.org/wiki/Gravity_train
(yes i know you cant actually do that due to a liquid core.)
Spam,
I disagree with you. Also, perhaps, in the interest of “fairness,” we should tax all land in NJ onthe same basis and not according to its use. In a world where most of our food is coming in from elsewhere anyway, why allow people to get reduced property tax rates because their land is considered a farm? Or are those breaks okay because you get them?
Well, off to reap the rewards of self employment.
hard place 124,
I dont know that russia and china would let the US break up, the risk due to the US arsenal being under ambiguous control is not in anyone’s favor. i could see them helping prop up which ever party they felt was in their best interest.
RE: 26 Harvey Drive
Note, the bogus data published for this sale is not a one-time event. There’s an ongoing pattern of deception from this harpy.
Each month, 2-3 sales in these “market reports” will have similar bogus data reported, in an attempt to hide true market conditions from consumers.
All of these lies are published on her site in PDFs. Even with the disclaimer “information deemed reliable but not guaranteed,” this ongoing pattern is clearly a willful and malicious attempt to defraud the consumer.
Any bored lawyers out there? The evidence of fraud is right on her website…
from kettle’s post last night to sas
“we have to meet at a GTG sometime, i have a chat i would love to have, in reference to your comment the other day about the system behind the curtain”
would like to sit in on that convo if possible
It is time for another gtg.
Just a bit of advice to those who are inclined to make scathing remarks about non-public figures in an open forum, it is one thing to have an opinion about someone, their honest, their ethicds, their personal morality or behavior, it is another thing to assert ones opinion as fact. I will leave it to Nom to expound further onthe subject.
Sue Adler…hmm definition of delusional. Right we are somewhere close to bottom, normal homes in nice towns with super high taxes(~20k) and 800k price tags, I’d say a good number of her listings have the potential to lose hundreds of thousands of dollars, if purchased at list price.
Re home sales in JC
A friend of mine just closed on his place in JC. he sold it to an older couple who were looking to upgrade “since we are at the bottom”. They lived down the street in another apartment.
The friend knew he was holding a stinking time bomb and is tickled pick he found someone who has clearly drank copious amounts of coolaide. I wonder how the buyers 401K is doing?
Oh he manged to break even, including transaction costs
Qwerty, I just posted another one on her site. I’ll post here as well as it will inevitably be deleted…
“I found another erroneous posting in her Summit sales, Mr. Clotpoll. 90 N. England was originally listed at $759,000 and was on the market for 173 days before being withdrawn (final tally: 31% off OLP).
Oh yea, by the way, 65 Blackburn sold last for $1,595,000 (100K more than most recent sale price)…..almost 6 years ago to this day.”
in mod?
JC the land of property still listed sky high and not selling at anywhere near normal volume. JC has been a manipulated market for a while, speculators, and Realtors who basically are price fixing, doesn’t hurt that most realtors in jersey city own a lot of property purchased at dirt prices. Hudson county realtors are the worst.
Just a bit of advice to those who are inclined to make scat-hing remarks about non-public figures in an open forum, it is one thing to have an opinion about someone, their honesty, their eth-ics, their personal mor-al-ity or behavior, it is another thing to assert one’s opinion as fact.
A thought for those who are inclined to make sc-ath-ing remarks about non-public figures in an open forum, it is one thing to have an opinion about someone, their honesty, their eth-ics, their personal mor-al-ity or behavior, it is another thing to assert one’s opinion as fact. I will leave it to Nom to expound further on the subject.
whatever the offending word was, it is gone now
Qwerty (96)-
It appears she removed my post from last night.
Clot – clearly a “it’s my (party) blog and I can (cry) delete if I want to” moment for Ms. Adler.
Renter,
I feel your pain. I am from Upstate NY and ended up in the People’s Republic of Jersey. I hear it everyday from co-workers “When are you going to buy a house and stop renting.” I just block it out and retort with “How is that adjustable rate negative am loan treating you?” “Did your Obama bail-out check come in the mail yet?” The conversation usually ends there.
#149 kettle:“since we are at the bottom”.
Just amaqzing to me how nayone could think we are at the bottom in this area. This housing decline is finally just getting started in our area.
This Spring selling season should convince the last of the delusional sellers out there who need to sell, and finally accept the new reality.
Others will simply have the hosues taken from them
[149] ket,
your bud is now well-placed to escape from NJ.
My primary fear is that, being a property slave, I cannot extricate myself that easily from the absolute morass that NJ will become once the pension and muni debt bombs start going off. My only hope is that the powers that be continue to kick the can down the road for another 20 years.
I fear we don’t have that long though.
Well, back to work. Someone has to pay for all the bailouts.
[153] shore
Appreciate the vote of confidence. I don’t practice libel law, and the risk to us for our anonymous opinions is minimal, but I will remind everyone that Grim gets to bear the brunt of any legal onslaught from an aggrieved nonpublic person.
So when we do things that open him up to being on the wrong side of the “v.”, it is like going to a party at his house and p1ssing on the rug.
#156 Escape: When are you going to buy a house and stop renting.”
I cannot belive there are still some morons out there spouting that nonsense.Deep, deep denial,
“I cannot extricate myself that easily from the absolute morass that NJ will become once the pension and muni debt bombs start going off”
This is tha main reason our additional property purchases will be in other states.
[147] 3b
I believe that Spam called for a Hunterdon GTG this weekend.
Don’t recall whose in. I am doubtful (would not go but would like Spam’s opinions on farmland, so considering it).
If Jon’s looking for a nice theme for his upcoming campaign …http://www.youtube.com/watch?v=7SsFK3JJ_-E
Why do I feel that no matter what I in savings and investments will get wiped out?
“Fukcin a!”
http://tinyurl.com/FishStory
#163 “I have”
USB cuts dividend 88%
http://biz.yahoo.com/rb/090304/business_us_usbancorp.html?.v=1
House (139)-
If you are a renter, you deserve to be forced to watch the Grizzlies and Hawks for the rest of your life. :)
Stu,
I am impressed.
Dink (151)-
Torturing Sue Adler is giving me too much pleasure. I think something is way more wrong with me than with her.
On second thought, naaah.
“Torturing Sue Adler” would be a good name for a blogspot blog.
The End of Supply Side Economics
http://understandingtax.typepad.com/understanding_tax/
TRENTON, N.J. – Someone gets to sleep in Wednesday.
New Jersey Lottery spokesman Dominick DeMarco says the one winning ticket in Tuesday’s Mega Millions $212 million drawing was sold in Tom’s River, Ocean County, New Jersey.
DeMarco can’t yet say where it was purchased.
The person who holds it stands to earn about $8.1 million a year, before taxes, for the next 26 years as an annuity.
Pent up demand for NNJ as this poor Tom’s river guy is shore to move up to a train town.
Stu (165)-
Best post ever.
WFC, USB headed to never, never land.
#163 “I have”
Your typo correction seems like a philosophical revelation. Instead of focusing on having something to “ensure” everything will be fine, it may be fine to look at it as “I’ll be fine in a majority of worst case scenarios”.
So, my nugget of wisdom will be: look at “I am” [educated, skilled, flexible, nimble, strong, a hard worker, etc.] instead of “I have” [real estate investments, portfolio of stocks, cash balance, etc.]
Though with things like friendships and relationships, the “I have” [great friends, a secure family, etc.] is much more valuable than “I am” [friendly, charming, etc.]
S
USB was a Guy Adami favorite (fast money). He should be shot.
http://www.npr.org/templates/story/story.php?storyId=101386052
Banks refusing to take back foreclosed properties.
I thought I’d never see this.
Sue Adler has company in her publication of false data to consumers:
http://www.migginsrealestate.com/4_5_prices.php#millburn
The January “sales report” from Maggie Miggins also contains the same false sales information on 26 Harvey Drive (and countless other houses). It’s the same pattern: hide the 2-3 leading decliner properties each month to prop up the false claims of “Properties sold for 98% of asking price after only 20 days on market.”
Lies. Lies. Lies.
Note: these are the “top” realtors in the region, and the country. Liars.
http://www.bloomberg.com/apps/news?pid=20601009&sid=a3.f3LVobLmk&refer=bond
Bass Says ‘Cluster’ of Sovereign Defaults Is Possible
A whole bunch of central banks defaulting will make shiny bubble make the housing bubble look like peanuts.
Since defaulting is not politically feasible then will prefer quantitative easing.
Same sheeeet different package!
Escape for New Jersey says:
I hear it everyday from co-workers “When are you going to buy a house and stop renting.”
—
truth be told, a majority of my friends have bought houses in the late 90s and have been living there. Most are close to paying off. They made minor updates, but the general feeling is to have “no debt” [incl mortgage].
Disclaimer: I live like a cheapo, and my friends have just a little bit better lifestyle. But, from where I grew up, what I have is luxury :)
Qwerty (179)-
I wonder how much waterboarding Ms. Miggins could withstand?
Poser says:
March 4, 2009 at 11:04 am
Does anyone on this board know what Warren Buffett meant when he said the next bubble is in U.S. Treasuries?
Pose: In my opinion, he meant that there is a bubble in U.S. Treasuries.
FYI – If you hold individual Treasury bonds, your principal risk is lower, because you will eventually get face back for the bonds (which could be more or less than you paid). If you hold a mutual fund, I would strongly give some thought to lightening up a little bit CAVEAT: you must review taxation issues, your overall portfolio, and your personal situation, which should drive your decision making…..
Star Ledger page 1 article talks about Taliban gaining control in Pakistan, and potentially winning control of the Nukes. Surprised this hasn’t been discussed before in other media sources. Hadn’t realized they were controlling various Pakistan provinces.
Is there a GTG at Tiff’s this Saturday?
make money,
There was a story about a woman who the bank refused to take the property back from, so she wrote out a deed to the bank and gave it to the town, as the town held the deed holder responsible for upkeep and taxes. Dont know if that is legally above the bar, but if it is, things could get even uglier for banks if it catches on.
be cautious of the real estate agents who tell you they have the most sales the past year. All that tells me is that they were the best at convincing their clients to overpay for properties on the market.
confused,
our special forces have been training in the region to go in and neutralize Pakistani nukes if an unfavorable government takes control. The US has been making strikes into eastern pakistan as that region is the “tribal” region and is heavily controlled by the Taliban and various warlords
Just spoke to a client who is not going to use us for his tax prep this year and is opting for Turbo Tax. He doesn’t want us to get in trouble when he pulls a “Geithner”. Wonder how many other tax payers will be tempted to “Geithner” their returns with Turbo Tax?
A friend of mine took a job at Sun Trust Bank and moved to Atlanta. Yikes!
http://www.google.com/finance?q=NYSE:STI
People have been pulling “Geithner” on their taxes for years. Hell, Obama had a hard time selecting a single person that didn’t. The tax code is a complete joke. The federal government isn’t smart enough to catch a good tax evader. The problem is, they don’t adhere to that whole “innocent until proven guilty” thing.
Sastry,
I also have friends who bought in the mid to late 90’s who are doing ok. At that time it was difficult to get in over your head because the banks would not allow it. I tried to buy around 97-98 and was told I needed 20% down, proof of income, 6 months in the bank to cover future payments and proof of continual employment. I was just out of law school so it was back to Hoboken to live in apt with 3 other people.
#191 Escape: And those days are on the way back including those prices.
Beige Book Ny RE:
Construction and Real Estate
Housing markets in the District have been mixed but generally weak since the last report. Manhattan’s residential rental market continued to soften in January, with asking rents reported to be down 3 to 9 percent from a year earlier; in addition, a growing number of landlords are offering one or more months of free rent and are paying any rental fees. Perhaps as a result, rental vacancy rates, which had been rising steadily in the second half of 2008, edged down in January. A major appraisal firm reports that Manhattan co-op and condo prices have continued to decline since the beginning of the year and are down by an estimated 20 to 25 percent from last summer; the number of transactions thus far in 2009 has been running 60 to 65 percent lower than a year ago. A contact reports seeing very few transactions at the high end of the market in Manhattan, and that most of them seem to be all-cash deals. Inventories are rising seasonally from an already-high level and that backlog is said to be accompanied by a large and growing amount of “shadow” inventory in new developments.
The market for single-family homes in and around New York City has also weakened, though market conditions were reported to be more stable in upstate New York. Contacts in northern New Jersey report little or no discretionary activity in the resale market–almost all transactions are either foreclosed properties or distress sales by owners that need to move. In this environment, market prices are difficult to gauge, but an industry expert estimates that they are down 15 to 20 percent from the 2007 peak, with steeper declines at the high end. Separately, a real estate industry contact notes a rising number of “short sales,” for which the mortgage holder agrees to accept less than the full principal balance upon the sale.
Commercial real estate markets in the District weakened noticeably in January. An industry contact notes that New Jersey’s office and retail markets have deteriorated substantially in recent months. Manhattan’s office market has also slackened markedly: the vacancy rate jumped nearly a full point in January, to 11.3 percent–up from 7.6 percent a year ago. Most of the increase was concentrated in Midtown, particularly in the financial sector. Asking rents for Class A space fell 2 percent in January and are down more than 13 percent from a year ago, though an industry contact notes that this understates the weakness because rents are increasingly negotiable and landlords are offering more concessions. There has been virtually no activity in Manhattan’s office sales market. New York City’s retail rental market has also softened, except at the low end (groceries, drug stores, etc.). Demand for retail space has contracted substantially, particularly in the banking sector–until recently, banks had been substantial users of space. Also, the bankruptcy of a major electronics retail chain, as well as of other retailers, has added a good deal of available space, and landlords are concerned about the outlook for other retail chains.
http://www.federalreserve.gov/fomc/beigebook/2009/20090304/2.htm
Sastry:
I had trouble getting a car loan for my 1995 Civic. I had $5000 to put down on a $13,900 car and no dice. Not enough of a credit history for them. I had to borrow $2000 from the bank of grandma and paid it back at $350/month for 6 months. Grandma knows how to loan money.
[179] make
Here’s my takeaway from that story:
“Hayman has started a municipal-bond fund to provide a tax- free return and a residential real estate private-equity fund focused on distressed assets and bankruptcy loans. To date, the fund has bid on more than $1 billion of distressed transactions, he wrote.
“Given the direction in which the global economy is headed and looming worldwide fiat currency debasement, we are confident that at some point, real estate will prove to be a very valuable asset class,” he said.
Where’s the Rally Protection Team?
the marker is rocking, they love the beige book
“the market is rocking, they love the beige book”
You think that’s it?
“The bottom line is that the recession is worsening but there were no unexpected bombs from the latest Beige Book. We are still on track for a longer and deeper than average recession. Markets showed little reaction on the release.”
“Given the direction in which the global economy is headed and looming worldwide fiat currency debasement, we are confident that at some point, real estate will prove to be a very valuable asset class,” he said.
Com(195),
RE and Shiny is all I have in this world.
missed out on the very exciting “is $250k rich?” discussion yesterday.
It is not a simple question despite what some people seem to think. Many people who are in high income positions have to forgoe income for many years and go into substantial debt to get those jobs. If you are a doctor or lawyer making in the low $200s but you have $200k of eduction debt, are you rich? More than likely (at least for the first few years) you are not living much differently than you did when you were in school.
Or consider someone who makes a similar amount but was old enough to buy a house before they started appreciating 20% per year. This person makes $250k but they are living a lifestyle which, if they had to fund it today, would require $500k+ to do so.
Or consider someone who has an income of $250k per year from a trust, has no debt, can choose to work or not, etc. Is this person the equivalent of the other two?
The point is that income is only one consideration as to whether one is rich and is clearly not the most important consideration.
Skep-tic won’t you please help my pony. I think it’s his lung.
Could you believe it – the volume on FAZ has now outstripped SKF. Clot – you gotta step it up a notch here.
Off topic but, anyone know any good travel agents?
#100
Timmay and Barry’s Bailout Bonanza goes until the end of 2012! Also applies up to $729k for single family homes. Gonna be a long time before the market hits bottom at this rate
here is another gem from the plan:
“Redefaulting Loans should be considered for other loss mitigation programs prior to being referred to foreclosure.”
re-re-default?
201: just blew chunks all over my monitor!
:)
vic (203)-
Sorry, pal. Gobbling up FXP around $35.
As far as I’m concerned, the only place one can get “Chinese Stimulus” is in a Rt 3 body shampoo joint.
…or, is that a joint shampoo Rt 3 body?
Can someone comment on this situation, because it boggles my mind:
there is a house on a busy road (Clinton) in Tenafly that sold for 1,150K in October of 2006 — what some would consider the top of the market.
It was recently listed for 1,499K. Are these people insane? Or am I?
New thread, move it up.
RE 210:
Let me know if you’re thinking about ringing the bell and asking straight up. I’ll show.
Bought a few thousand shares of GE at the close. Hoping for a quick snap back rally in the coming days. Will exit at around 8. 700 million shares traded today which almost looks like a capitulation day today. If I am wrong, I am going back into my hole.
I don’t know the requirements in your jurisdiction, but in Florida taxpayers can be represented in administrative ad valorem appeals by an attorney or an agent. Expertise is cross-disciplinary to the extent values should be uniform – an equal protection principles – so you need to know how values should be calculated and the laws governing ad valorem assessments will dictate adjustments to traditional appraisal methods. There are differences, important ones, between assessments and appraisals. So if you can engage an agent, and many if not most of us around the nation work on contingency, keep on looking for someone who knows how to identify application of valuation in compliance with jurisdictional standards.
Want lower property taxes? Rent!
http://njexperts.com/2009/02/26/but-how-do-i-know-if-the-nj-real-estate-market-has-hit-bottom/comment-page-1/#comment-127
buahahahahahahahaha
sl
poser — Buffet means that everyone is piling their money into “cash under the mattress” risk free investments, which drives their yields down to almost nothing.
Treasuries are very safe short term, the main risk is that if you have long maturity bonds in there, they have interest rate risk — inflation can eat away at the real value of your coupon payments.
T-bills (and money market accounts) are just as much if not more of a bubble as treasury bonds now — yields were slightly negative at one stage. But even in a severe “bubble”, you can’t lose 80% of your investment in T-Bills, because the value of them can’t get too much more than the principal (plus a slight premium).
There is too much government in this state. When the hell are we going to start demanding that the state cut more of its work force. Too many state workers making more money then its citizens imo.
Отличный пост, прочитав несколько статей на эту тему понял, что всё таки не посмотрел с другой стороны, а пост как-то очень заинтересовал.
Классно всё: и картинка ,и информация
Очень интересно!!! Только не очень могу понять как часто обновляется ваш блог?
Интересно, а почему так редко блог обновляете?