June
18
2015

DEAL SHEET Week Ending June 19, 2015

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GROUNDHOG DAY

As suspected, the Fed announced this week that although the economy has had some growth, it will not raise interest rates until later this year. Recently, the Fed has been hinting that it would raise rates in June, but it is still waiting for the job market to pick up so interest rates will remain status quo for now.
THE DEAL: Borrowing rates have been at an all-time low ever since the financial crisis in hopes of stimulating the economy. When the Fed does finally decide to raise the interest rates, it will mean the economy has recovered. And that would be a good sign.

 

THE STATE OF NY RENT REGS

June
12
2015

DEAL SHEET Week Ending June 12, 2015

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MEND IT, END IT OR EXTEND IT

As the expiration of the 421a tax abatement program is upon Congress, Governor Cuomo has asked for a 3 to 6 month extension. Meanwhile, Mayor de Blasio and housing advocates either want the program modified or dissolved entirely.

 

THE DEAL: The Mayor and the Governor don’t exactly agree on NYC housing reform, and the 421a plan is a major sticking point. De Blasio is proposing an end to 421a breaks for condo projects, while Cuomo argues that would benefit developers and expose construction workers. All of this is a bit of a role reversal and has industry insiders watching what has quickly become a political boondoggle.

June
5
2015

DEAL SHEET Week Ending June 5

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POTENTIAL END TO LLC PRIVACY BLANKET

Limited Liability Companies, LLCs, are an extremely common real estate investment strategy for reducing personal risk, taking advantage of tax benefits and protecting privacy, especially for high profile and high net worth individuals. However, the NYC-RPT (Real Property Transfer Tax Return) recently enacted a change that requires the names and social security numbers or employer identification numbers for each general partner or member of a multiple member LLC or partnership, which will ultimately revoke the previous blanket privacy protections that an LLC provided.

THE DEAL: Although there is still uncertainty surrounding how the Department of Finance will actually apply the new rule, the information on the NYC-RPT is not immediately accessible to the public. Also, buyers may be able to preserve their privacy as an LLC could potentially be structured as a holding company with one or more single-member entities as members of the real estate LLC. Bottom line, stay tuned on what may have tremendous impact on future structures of real estate transactions.

BETTING ON THE MEADOWLANDS

May
29
2015

DEAL SHEET Week Ending May 29th

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JERSEY STRONG

According to a recent industry report, home sales in the Garden State are up significantly from last year, as well as an increase in listings, which are also raising prices, but at a reasonable rate. Real estate professionals agree that the strong market activity is on par with pre-2008 levels.

THE DEAL: Although the Jersey market is up overall, certain pockets and higher-end properties are experiencing higher levels of activity, keeping the upswing in certain counties while other areas lag.

May
13
2015

DEAL SHEET Week Ending May 15th

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SECOND WAVE of CHINA

investment apartmentsAs the Chinese government cracks down on corruption, foreign real estate dollars coming out of China are from smaller, second-tier cities and traditional buyers who negotiate longer. As discussed at a recent industry panel on foreign investment in NYC, experts predict these new buyers are a different type of investor.

THE DEAL: The new wave of Chinese investor in NYC real estate is no longer looking for only luxury residences for their children to study in America but rather commercial, institutional interests with long-term, revenue generating opportunities.

May
8
2015

DEAL SHEET Week ending May 8th

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NYC MAYOR’s REAL, REAL ESTATE PLAN

deblasio overhaulMayor de Blasio has promised to build or preserve 200,000 affordable housing units over the next decade. In order to do so, his plan calls for a complete overhaul of NYC’s housing programs and tax incentives that have been in effect for years, which would also include requiring developers to build 25-30 percent affordable units in order to qualify for tax breaks.

THE DEAL: Although his ambitious plan shakes up decades-old legislation and includes a mansion tax that is raising highbrow eyebrows, the Mayor has won the support of the Real Estate Board of New York, which may also give the administration leverage with both the Republican-dominated Senate and the governor.

 

LOCATION, LOCATION, LOCATION

May
1
2015

DEAL SHEET Week Ending May 1st

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SLOW GO KEEPS RATES STAUS QUO

Economic GrowthThe Federal Reserve has been hinting that they believe the US economy is strong enough to start raising interest rates possibly as early as June. However, the US economic growth nearly stalled in the first quarter, making economists wonder if in fact rates will increase so soon.

THE DEAL: While there are signs that the economy is nearly rebounded, the recovery is the slowest in history. The sluggish growth and current stagnate economy has experts thinking the interest rate increase might not happen as soon as it was expected.

April
24
2015

DEAL SHEET Week Ending April 24th

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LEGAL REBATES

A recent change to New York’s Real Property Law allows real estate brokers to rebate a portion of their commission to clients.

THE DEAL: The newly amended language makes it clear that a buyer’s agent is legally allowed to give back a portion of their commission from the seller or seller’s agent to their client, which in essence is a legit way to discount their services.

 

April
17
2015

DEAL SHEET Week Ending April 18th

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PROPERTY TAX REBATES

NYC Council is considering property tax rebates for homeowners up to $500 for family incomes of less than $100,000 and plan to push the rebate legislation in budget negotiations with the Mayor.

THE DEAL: The city hasn’t extended property tax rebates since the finical crisis hit in 2009. The current proposal will cost the city approximately $200 million and is being sponsored by council members who believe the city’s finances can afford to help NYC’s middle class homeowners.

 

RETAILER TURNS LANDLORD

April
9
2015

DEAL SHEET Week Ending April 10th

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HGTV HIT COMES TO TRISTATE
property brothers

Hugely popular Canadian-based reality series Property Brothers, that showcases fixer upper transformations, is shooting its fifth season in the NYC tristate area. The show features identical twins Drew (realtor) and Jonathan (contractor) Scott who help endearing couples find, buy and transform fixer-uppers into budget-savvy dream homes.

THE DEAL: This HGTV reality hit will spotlight homes in the lower Hudson Valley region and Connecticut area that range from $1 million to $1.3 million with second-tier properties priced between $400,00 and $600,000. The show’s producers were impressed with the NYC’s area’s “wide variety of stunning dream homes and inspirational fixer-uppers.”