A POSITIVE APPROACH AMID THIS HEALTH CRISIS

Yes, a lot of people are going to be ill. Yes, we are going to have to quarantine, practice social distancing.  Yes, we should self-isolate to protect ourselves and prevent the spread of the virus. But we are a strong community filled with wonderful people and we can cope if we avoid being overwhelmed by the news on television, the internet, newspapers, etc.

We must do what the medical experts at the CDC have recommended – wash hands frequently, don’t touch your face – especially eyes, nose and mouth, stay 6-feet away from others, avoid close contact with people who are sick, stay home as much as possible to mitigate the spread of the virus. The less people you come in contact with, the lower the odds of giving or catching something.

Staying home has its challenges including not getting enough exercise, eating too much, and feeling isolated and depressed. 

First and foremost, stock up on essentials but PLEASE don’t hoard.  Here are some tips to avoid the negatives from taking over:

•  Get a daily update from TV or the internet and then TURN OFF the Coronavirus news. Stay  informed, but don’t be obsessed … same advice for the stock market.
• Talk - USE THE TELEPHONE or even better FaceTime, with friends, family (your grandkids), co-workers, and people you know who are isolated.  Yes, Facebook, email, Messenger, Instagram are all good, but person-to-person is what we all need now.
• Catch up on your reading, work on those hobbies that you put aside, clean out those closets!
• Do that thing that you’ve been wanting to do but never seem to get around to it – now’s the time to explore, experiment and renew.
• Watch HAPPY programs, movies on TV or your iPad. Binge to your heart’s content!
•  EXERCISE – do something every day, even walking in place.  There are programs on TV, youtube, etc.  I remember my dad doing the air force regime every morning. As a kid, I thought it was corny, but guess what, I’m doing jumping jacks!

More than anything, PRAY… for the health and safety of all your loved ones, our community, our country and the entire world,  and add a special prayer for all the health care professionals who are putting their lives at risk to help others.  May we be blessed with strength to cope, perseverance in what we all have to do, and the miracle of a vaccine and a speedy end to this pandemic.

God Bless You.

CORONOVIRUS UPDATE

As a public service, we would like to share information with you regarding the rapid developments relating to the spread of the coronavirus (COVID-19). We hope this information will help mitigate the spread of the virus in our community, which has reported at least two people who tested positive, to date, who either work or live in Southold.  We have seen the rapid spread of the virus in Italy. The country is now in lock-down for about three weeks to stem the spread of the virus.  The coronavirus has hit the older population hardest - Italy has one of the oldest populations. The median age in Italy - 45.4, U.S. - 36.9, and Southold - 51.8 years.  We have an older population in Southold and must be more vigilant to protect ourselves and our neighbors from contracting the virus.

The CDC (Center for Disease Control and Prevention) has said, “The best way to prevent illness is to avoid being exposed to this virus.” The virus is thought to spread mainly from people who are in close contact with one another (within 6 feet), through respiratory droplets produced when an infected person coughs or sneezes. These droplets can land in the mouths or noses of people who are nearby or possibly be inhaled into the lungs.

Here is the latest advice from the CDC:

Protect Yourself:

·       Wash your hands often with soap and water for at least 20 seconds, especially after being in public places, or after blowing your nose, coughing, or sneezing, or use a hand sanitizer that contains at least 60% alcohol. Cover all surfaces of your hands and rub them together until they feel dry.

·       Avoid touching your eyes, nose, and mouth with unwashed hands.

·       Avoid close contact with people who are sick.

·       Put distance between yourself and other people if COVID-19 is spreading in your community. Especially people who are at higher risk of getting very sick.

Protect Others:

·       Stay home if you are sick, except to get medical care.

·       When you cough or sneeze or use the inside of your elbow, or cover your mouth and nose with a tissue (throw used tissues in the trash).

·       Immediately wash your hands (follow the protocol above for washing hands)

·       If you are sick:  wear a facemask when you are around other people (e.g., sharing a room or vehicle) and before you enter a healthcare provider’s office. People who are caring for you should wear a facemask.

·       If you are NOT sick:  only wear a facemask if you are caring for someone who is sick. Facemasks may be in short supply and they should be saved for caregivers.

·       Clean AND disinfect frequently touched surfaces daily. This includes tables, doorknobs, light switches, countertops, handles, desks, phones, keyboards, toilets, faucets, and sinks. To disinfect, use 4 teaspoons of household bleach per quart of water or an alcohol solution that is at least 70% alcohol.

·       If surfaces are dirty, clean them: Use detergent or soap and water prior to disinfection.

If we all do our part, we can help reduce the spread of COVID19 in our community and protect those who are most vulnerable to serious illness.

 
Sources:1.  As Virus Spreads, Italy Locks Down Country, Wall Street Journal, March 10, 2020, pp A1 and A9    2. Coronavirus Disease 2019 (COVID19) What You Should Know, March 11, 2020, https://www.cdc.gov/coronavirus/2019-

HOME REFINANCE? YOU DO THE MATH!

When my mom, who was in her nineties with short-term memory loss, was asked her age, she would say, “I was born in 1923, you do the math!”  Couldn’t help but quote her here, when we talk about whether it makes sense to refinance – take her advice and do the math before you plunge in.

Certainly, with the current drop in the Federal Reserve benchmark rate on Tuesday, mortgage rates will likely fall possibly, “below 3% …and frankly that would be a once-in-a-lifetime refinancing opportunity,” says Guy Cecala, publisher of Inside Mortgage Finance, quoted by the Wall Street Journal.

How do you go about figuring out if it makes sense for you? Certainly, with the help of your financial advisor, a good mortgage broker or your bank’s mortgage department. But here are a few things you should consider:

 1. Look at the difference (spread) between your current rate and the rate you will   be getting and calculate your savings.  

2. Calculate the cost to refinance (you should get this from your bank or mortgage broker), including title insurance, appraisal, attorney fees, refinancing fees, New York State Mortgage Tax (.8% of loan amount.  This mortgage tax can be mitigated with a program called CEMA – consolidated extension modification agreement – ask about it.

3. Rule of thumb: consider a refi if the difference in mortgage rates is at least ½ or 1 percentage point and cost to refi will be recouped in 2-3 years.  If you are planning to move in a year, it may not make sense.

4. Consider a refi not just to reduce your monthly mortgage payment but to reduce the term of your loan and pay it back faster.  You will save on interest and be free of your monthly mortgage nut sooner!

5. Consider a refi if you have an adjustable-rate mortgage (ARM) loan to lower the rate and/or fix it at the low rate.

It’s a good time to take stock of your finances and see if you can save by refinancing.  Visit your banker, call you financial advisor or call us if you would like more information. 

Source: Wall Street Journal, “Home Refinancing Looks Attractive, but First Do the Math,” March 4, 2020, page B12.

CORONAVIRUS - ARE WE PREPARED?

With all the news about the coronavirus, it’s important to be informed, take preventive measures and be prepared. The CDC (Center for Disease Control and Prevention) has urged everyone to take precautions and prepare for an inevitable outbreak in the United States. CDC has taken a containment strategy that has been successful to date, so far there have been 53 cases diagnosed in the US on the west coast, but the spread will require organized interventions in local communities.

Here is important information about the coronavirus from the CDC:

Symptoms include: fever, cough, shortness of breath. If you have traveled to China or been in close contact with someone with the virus and have these symptoms, call ahead and let your healthcare professional know you may have been exposed to the virus before you go to see them, wear a facemask to prevent others from getting ill.

Preventive Measures include: Avoid close contact with people who are sick; avoid touching your eyes, nose, and mouth; stay home when you are sick; cover your cough or sneeze with a tissue, then throw the tissue in the trash; clean and disinfect frequently touched objects and surfaces using a regular household cleaning spray or wipe; wear a facemask if you show symptoms of the virus to prevent the spread of the disease; wash your hands often with soap and water for at least 20 seconds (or use hand sanitizer with at least 60% alcohol) especially after going to the bathroom, before eating, after blowing your nose, coughing, or sneezing.

The CDC recommended that we all should be prepared – including our community.  We should start thinking about measures needed to prevent the spread of the virus in our homes, workplaces and places where people gather.

At Beninati Associates, we will be implementing preventive measures to protect our clients and customers, we will provide hand sanitizers, protective gloves, tissues, cleaning spray to clean surfaces, and facemasks where appropriate.  We’re not alarmed, nor are we alarmists, but we believe in being informed and prepared. And we believe that communicating and planning as a community is the best way to keep us all safer from the virus. We hope you will start thinking about what measures you should take for yourselves, families and co-workers and put your concerns to work by preparing!

Sources: CDC, Coronavirus  Update, Transcript February 25, 2020, cdc.gov; Wall Street Journal, Virus Fears Bruise World Stock, February 25, 2020, p.1; Newsday, February 26, 2020, p. A4.

Landlords Be Aware of NYS Tenant Protection Act

It’s possible, that with all good intentions, the Governor and NYS Legislature enacted into law a Housing Tenant Protection Act (June 2019), so broad based that is has had unintended consequences affecting landlords, tenants and realtors.  “The Act is a sweeping and comprehensive collection of new provisions that strengthen tenant protections,” says the New York Department of State. They have recently issued guidance for realtors. 

Many restrictions have been placed on what landlords can and cannot do. There was a need to review and revise some of the rental practices, but the broad based application of the provisions of the Act  may have the unintended consequence of impeding and possibly decreasing the number of  rentals available, and discourage realtors from acting as agents for landlords and tenants.

The law applies to our summer rental landlords and tenants as well, and we thought it would be a helpful to summarize some of the most notable provisions below:

1.    Security deposits are limited to 1 month’s rent. The security deposit must be returned within 14 days after the tenant vacates with an itemized statement indicating the basis for amounts retained. If a landlord fails to return the remaining portion and itemized statement within 14 days, the landlord forfeits any right to retain any portion of the deposit.

2.    Processing, review or acceptance application fees are prohibited (with some exceptions for COOP’s and Condos.

3.    Background check fees are limited to lesser of actual cost or $20.

4.    Late payment fees are capped to lesser of $50 or 5% of monthly rent.

5.    If a tenant breaks a lease, the landlord must attempt to re-lease the property.  

6.    Damages in eviction proceeding are no longer recoverable. There are a number of additional provisions that address timing, of eviction proceedings, warrants, etc., that landlords should be aware of.

If you are a landlord, talk with your attorney and find out how the new law applies to you, and make sure your lease is updated for the new provisions of the 2019 Act.

Sources:

New York Department of State, Guidance for Real Estate Professionals Concerning the Statewide Housing Security & Tenant Protection Act of 2019.

NYSAR (New York State Association of REALTORS, Inc.), 13 Things to Know: Expansion of Rent Regulation and Tenant Protection, prepared for NYSAR by Harris Beach, PLLC, Attorneys at Law.

SECOND HOMES FIRST – A MOVEMENT

With median home prices in cities like New York and San Francisco hovering around $1 million, some first-time buyers are choosing to remain renters in their home city and they're buying a vacation property in a more desirable/affordable area instead.

               Over the past few years, we have been seeing more and more Millennials buy on the North Fork, where they can get a beautiful home on waterfront property and not use all their assets and plus some to get a fraction of the space in the city.  They then have the best of both worlds - a city apartment rental offering more than they could afford to buy, and a second home in a resort area offering all they wish to enjoy with children and family.  “A place to live, and a place for living.”

Does it make financial sense to buy a second home and rent a primary residence in the city? Starting with a second home can be a reasonable choice for many urban professionals, especially couples with small children.  Space in New York City is far more expensive on a per-square-foot basis. Instead of taking on a big mortgage in the city, a smaller mortgage for a vacation home may not only be easier on your budget, but could also have some relative tax advantages, including mortgage interest deductions on loans up to $750,000 and some local tax deductions.

Why buy a second home, first?  There are several important factors to consider.  The emotional well-being that comes from getting out of the city, especially when couples are in stressful jobs, is “priceless”! You get to enjoy the North Fork, to relax, go fishing, swim, hike, kayak, garden, visit local wineries, and breweries, enjoy diverse dining experiences, in a much more laid-back environment.  If you have children, you also spend quality time together and the children can run around in farm fields or even just the lawn in your back yard!  Sound idyllic?  It is!!! 

Why the North Fork makes for an even wiser choice for a second home is the steady appreciation in value.  “Win-Win,” don’t you think?  But the challenge today is getting the best value in a market where inventory is in short supply.  Make your move sooner rather than later. Don’t let the parade pass you by!  Call us, we’ll tell you all about the opportunities and possibilities of our beloved North Fork, and you can be part of it before the summer season starts!  Maybe even a Valentine’s gift for yourself and the whole family!

Source: Why people are buying vacation homes -- before they've even bought a first home, Anna Bahney, CNN Business, January 7, 2020.

EXISTING HOME SALES FLAT FOR 2019

On a full-year basis, total existing-home sales* ended at 5.34 million, the same level as in 2018, even though existing-home sales grew in December, according to the National Association of Realtors®.  Sales in the South were up 2.2%, offset by declines in the West of 1.8%, declines in the Midwest 1.6%, while the Northeast remained unchanged.

The median existing-home price in December was $274,500, up 7.8% from December 2018. Prices rose in every region. The price increase marks 94 straight months of year-over-year gains.

Lawrence Yun, NAR’s chief economist, said home sales fluctuated a great deal last year. “I view 2019 as a neutral year for housing in terms of sales,” Yun said. “Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem.”

Total housing inventory at the end of December totaled 1.4 million units, down 8.5% from one year ago (1.5 million). The drop in inventory accounts for most of the increase in prices as demand increases and supply decreases, prices go up.  There is always a tipping point where the pricing growth may hit a wall and sellers need to be realistic about this when pricing their home for sale this year.

First-time buyers were responsible for 31% of sales in December.  Individual investors or second-home buyers, who account for many cash sales, purchased 17% of homes in December 2019, up 15% year-over-year. All-cash sales were down in December, 20% versus 22% in December 2018.

Yun said conditions for buying are favorable and will likely continue in 2020. “We saw the year come to a close with the economy churning out 2.3 million jobs, mortgage rates below 4% and housing starts ramp up to 1.6 million on an annual basis,” he said. “If these factors are sustained in 2020, we will see a notable pickup in home sales in 2020.” 

On the North Fork, there are very few new homes being built and existing home sales account for most of our sales. With lower inventories, sellers would be smart to list sooner and catch the early-bird buyers!

 *Existing home sales excludes new construction.

 Source: National Association of Realtors, 2019 Existing Home Sales, January 22, 2020,