Archive for the 'South Orange Maplewood' Category

The New Tax Bill and NJ real estate. Moody’s vs Otteau

Among those of us who live in Northern NJ, there seems to be a general view that the new tax law will negatively impact our individual finances (as shown in the map using Moody’s analytics) .  While it is understandable to feel that way, there is a more optimistic (or resilient) view of the new tax law’s effect on NJ real estate, which will be covered here by real estate guru, Jeffrey Otteau.

Screen Shot 2018-01-01 at 4.45.29 PM

My political tendencies may be showing here but, Paul Ryan and Donald Trump basically admitted to trying to penalize high tax states like CA, NJ and IL  (para 5,6,7 of this link  Ryan’s blue state comments  ), even though those states contribute more to the federal coffers than they receive.  Among those being rewarded by the law, MS, KY, AL and many other red states generally receive more than they contribute – New Mexico is the main state that doesn’t fit the pattern. – state contributions
So if you’re worried the new Republican tax law will crush home prices in New Jersey and you’re listening to the media coverage coming out of Washington, then you’re looking to assess impact and take appropriate action.  According to Moody’s, the tax plan will most likely hit NJ and other suburban areas of the bigger, mostly coastal cities harder than it will hit rural, southern, Rocky and Great Plains areas.
But here’s real estate guru Jeffrey Otteau’s optimistic take on the recent changes to the tax code earlier this week.  “There’s no reason to panic here,” said Otteau, president of The Otteau Group. “I heard some bold predictions about Armageddon, about house prices collapsing and losing 10 to 15 percent in value.  There’s NO basis for that.” 
Otteau believes overall NJ home prices will continue to climb in 2018, but at a slower rate than previously predicted, as would-be new homebuyers step back to assess the new law’s impact on their pocketbooks with their accountants.  From my personal view of the market, January has already begun strongly with multiple bids on a few good area listings.
Otteau has a few other reasons for (short term) optimism:

1 – The lower tax brackets will somewhat offset the elimination of deductions

2 – People buy homes for lots of reasons – schools, proximity to work, the freedom and pride home ownership provides, the vibe and culture of an area. Taxes rank lower on the ladder of reasons

3 – The economy has continued to improve (since the lows of 2009) – jobs up and unemployment still low

4 – Interest rates are forecast to rise this year and that will compel buyers to act before they rise higher.

5 – And finally Otteau believes the reduction in the corporate rate will compel more hiring.  I’m yet to be convinced of this one as I believe most of this money will end up with management and in company stocks.

Finally, and said long before Otteau was born, Owning is usually a far better long term financial strategy than renting.

Many locals and their municipalities have already begun taking measures to lessen the impact of this new bill.   South Orange and Maplewood among other towns have made pre-paying property taxes early simpler, but there are more ways to lessen the impact.  Below are six additional suggestions (see link – prep for new tax law – for more explanation of each measure).  Prep for the new tax law
1- increase charitable deductions
2- expenses, which include travel, professional dues, education costs, conference fees, cars and electronic equipment, can be deducted to the extent they exceed 2 percent of adjusted gross income.
3-medical
4-delay income
5-moving for work do it sooner
6-alimony
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PILOTs – Board of Ed wants (deserves) a share

somsd-logo-b-rAs part of the 2015/16 school district budget process, South Orange-Maplewood Board of Education members discussed requesting that the local municipal governments of South Orange and Maplewood make contributions from housing development PILOTs.

Towns negotiate PILOTs (payments in lieu of taxes) with developers to encourage development. Often after 5, 10 or 20 years, the PILOTs ramp to a full property tax rate.  Municipalities receive annual payments in such arrangements, but school districts don’t.

Members of the Board of Ed say that increasing enrollment from the developments puts pressure on expenses, particularly staffing, and makes it difficult to budget under the state-mandated 2% cap.

Board member, Beth Daugherty said that she wanted the district administration to prepare a report that shows the number of students per residential development in South Orange and Maplewood and whether those properties are paying a PILOT vs. being on the tax rolls. Many Board members have stated that they really have to look at all potential revenue sources and not just keep cutting expenses to balance their budgets.

Seton Village is South Orange’s newest brand

setonvillage

Seton Village is the new brand for the Irvington Ave. corridor.  Doug Zacker, the Chairman of the Irvington Ave Corridor Advisory Board announced at Monday Night’s meeting.  A Holiday lighting event will be on Friday from 530-800 at W. Fairview and Irvington Ave.  After the autumn food truck and craft beer fest, this part of town is becoming more of a destination.

http://thealternativepress.com/towns/south-orange-slash-maplewood/articles/seton-village-gaslight-banners-going-up-along-i

https://kenkrasnerhomes.wordpress.com/wp-admin/post.php?post=1630&action=edit

151 Irving Ave. South Orange, NJ

151 Irving-01ext

This Elegant, Extraordinary & Spacious TUDOR w/BEAUTIFULLY LANDSCAPED GROUNDS, POOL, over 7000 SQ FT of comfort & many rich details awaits its next happy & distinguished owner.

Crown Jewel in Historic Montrose has UPGRADES incl KITCHEN, large/luxurious MASTER BEDROOM SUITE w/fireplace. ARCHITECTURAL DETAILS/AMENITIES incl. beamed ceilings, pocket drs, 8 FIREPLACES, Inglenook, stained glass, built-ins, closets galore,1st flr laundry, wine cellar, Koi pond, grapevine & distinctive entry. FIRST LADY, FRANCES CLEVELAND’S (wife of President, Grover Cleveland) former home. Kit, butler’s pantry, brkfst room, den, formal DR, sumptuous LR, office & powder grace 1st flr. Bdrms, offices, playrms, baths & studio on 2nd & 3rd flrs. Enjoy veranda overlooking Pool, Hot tub & Yard! 20 KW B/U GENERATOR & 3 CAR GARAGE.

click on any of the link below for more info or call 201 600 8141 if you’d like to see it.

http://emailrpt.gsmls.com/public/show_public_report_rpt.do?report=clientfull&Id=97932037_501982

Studio Arts Tour

There are many serious artists in South Orange and Maplewood.  I’m going to do the tour this year from 11-130 and then do my open house.  You can visit 50 artists’ studios, galleries and group exhibitions on this Sunday, June 3 between 11am-5pm.  It occurs the first sunday in june every year.

See the link below for more details.

http://www.studiotoursoma.org/

 

 

power

Back in Business – Downed Tree updates as of November 7, 2011.  Check the Patch link for prevention measures and other info.   http://southorange.patch.com/blog_posts/storm-cleanup-information-from-the-village

Here are the updates direct from Patch and the Mayor as of Nov. 1

PSE&G reports that it is making steady progress restoring service to the more than 560,000 customers impacted by Saturday’s storm.  In a notice dated Nov. 1 at 11:45 a.m., PSE&G announced that about 95,000 customers were still without power.
Here is the full update from PSE&G:
  • The utility has restored service to 83 percent of customers impacted.
  • Crews continue to work around the clock to restore service.
  • The company expects to meet the state’s goal of having at least 95 percent of its customers restored by Thursday.
  • Counties most affected include Bergen, Essex and Passaic due to the extensive amount of tree and power line damage.
  • PSE&G has 262 crews and troubleshooters, 110 line contractor crews and 212 tree crews working around the clock to restore power.
  • Downed wires should always be considered “live.” STAY AWAY FROM ALL DOWNED LINES. Do not approach or drive over a downed line and do not touch anything with which it might be in contact. To report a downed wire or other visible equipment damage, call 1-800-436-PSEG (7734). Provide the street as well as the nearest cross street.
  • Check on the well-being of elderly neighbors. See if they are safe and if they need extra blankets or other help. Contact local officials if assistance is needed.
  • Caution: Do not try to use a gas oven or range to heat a room. The appliance will deplete oxygen from the air, causing asphyxiation or deadly carbon monoxide poisoning.
  • Also be cautious when using space heaters. Read and follow the manufacturer’s instructions and heed warning labels. Be sure all members of the household understand how to operate space heaters safely.
  • To report a power outage, call PSE&G’s Customer Service line: 1-800-436-PSEG (7734).
  • Electric crews work to restore power to the largest numbers of customers first, attending to “priority” customers – hospitals, police stations, fire stations, water and sewer facilities, schools, communications facilities (TV, radio & telephone), and customers on life-sustaining medical equipment. At the same time, the utility restores power to homes and businesses, starting with the circuits serving the largest number of customers.
  • Customers with a handheld device, or who are at an alternate location with power, can also report power outages and view the status of their outage by logging in to My Account at pseg.com. General outage activity throughout our service territory is available online at www.pseg.com/outagecenter and updates are posted on pseg.com during severe weather.
Police Dept (973) 763-3000
Fire Dept (973) 378-7751
Village Hall (973) 378-7715
Public Works (973) 378-7741
Library (973) 762-0230
Recreation & Cultural Affairs (973) 762-0359
PSEG 1-800-436-7734
Emergency 9-1-1

NY Times article on South Orange

 

 

 

 

 

 

 

 

 

Good Press for our fair village.  Go to NY Times Article – link

http://www.nytimes.com/2011/09/18/realestate/the-love-for-one-orange-living-in-south-orange-nj.html

 


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