Posts Tagged 'montclair'

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.

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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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Loving the scenery & greenery

If you need a Spring, Summer or Fall fix of gardens, lush landscaping and two beautiful homes, there are two spots in Essex County that are definitely worth a stroll or two.

Greenwood Garden in Short Hills, NJ  Greenwood Gardens link

Greenwood pergola autumn10 18 2012 (2) photo Ken Druse

 

and Van Vleck in Montclair, NJ  Van Vleck link

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NJ Transit Map

 

NJ Commuting routes

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Eats – NJ Monthly Top 25 Restaurants

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NJ Monthly publishes a top twenty-five restaurants in the state and ten are within a 30 minute drive of SOMA.
Here are the top food destinations.  I’ve been to four of them, I’ve got some eating to do.
Maplewood (Lorena’s)
Maplewood (Verjus)
Montclair (Fascino)
Montclair (Laurel & Sage)
Millburn (Common Lot)
Westfield (Chez Catherine)
Hoboken (Cucharamama’s)
Jersey City (Maritime Parc)
Chatham (Serenade)
Morristown (Jockey Hollow Bar and Kitchen)

Essex County Property Tax Comparisons

ESSEX COUNTY TAX CHART
Below is a chart of the average tax load paid by several county towns and the percentage of that tax that goes to the municipality’s school system.

The percentage of the state budget spent on education has grown from about 33 percent to about 38 percent during Gov. Chris Christie’s term.

The Governor’s property tax cap may have helped reduce the annual increase in New Jersey’s property taxes, but unfortunately taxes are still rising faster than the rate of inflation.

The link at bottom shows more Essex county towns and gives a bit more background.

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link to more info on NJ tax burdens

Bathroom Tile Art in Montclair

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HGTV fans (and anyone else too) Come to the Montclair Art Museum to see how Noah Klersfeld transforms mundane bathroom floor tiles into spectacles of lights, patterns, rhythms, and colors. Videos are played on monitors and synchronized.  On exhibit from From February to May.

There are so many other interesting exhibits at the museum too!

https://www.montclairartmuseum.org/exhibition/new-directions-noah-klersfeld

 

 

 

Montclair Jazz Fest

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cmcbride

Looking forward to seeing Paquito, Christian McBride and many others at the Montclair Jazz Festival.  For more details click the link. http://www.montclairjazzfestival.org/


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