Should I sell or rent my old home?
Just when you think Brooklyn can’t get anymore expensive, the borough still manages to surprise you.
A wealthy renter recently paid a $27,000 per-month lease for a four-bedroom apartment penthouse on the top floor of One Boerum Place in Downtown Brooklyn.
The name of the renter is not public, but they will enjoy stunning views of Manhattan and downtown Brooklyn from the heights of the new 96-story apartment building. The unit boasts 3,100 square feet of indoor space and 2,000 square feet of outdoor patio space.
One Boerum Place offers residents access to an indoor pool, sauna, two-story gym, and rooftop lounge as well.
The $27,000 a month price tag falls just short of the honor of highest ever monthly lease in Brooklyn’s history. That title goes to 149 Clinton Street, a townhouse in the heart of Brooklyn Heights that is currently being rented for $30,000 a month.
A lottery for the 42 affordable units at Boerum Hill was open to residents making up to 130 percent of the area median income (AMI), ranging in eligible income from $68,572 to $167,570. The cheapest units available rented for $2,500 per month.
Two Blue Slip, a 39-story residential tower that is part of the ongoing Greenpoint Landing development, recently opened a lottery for its 127 affordable units. Rents started at $2,370 and went as high as $3,530.
Assemblywoman Emily Gallagher took to Twitter to express her dissatisfaction with the lottery.
“More than 80 percent of jobs in Brooklyn pay less than the minimum eligible salary ($81,258/year) to qualify for these units,” Gallagher wrote.
She specifically called out the 421-a property tax exemption policy,which gives real-estate developers decades worth of tax breaks for building new residential buildings where 10 to 15 percent of the units are set aside as affordable.
“Neoliberal housing policy is giving massive public subsidies to private developers so they submit a handful of units few can afford into a lottery where the chance of winning is 0.1689 percent,” Gallagher continued. “421-a is a bad joke.”
Q: I am told that rents are still very low, and I should rent instead of buying. Is this true?
A: While rents are slightly lower than they were pre-pandemic, consider that unless you’re in a rent-stabilized apartment, when you renew your lease, if the rental market has improved, the landlord will likely raise your rent to market price.
Couple that with the fact that prices have not fully recovered on sales, and this might be the ideal time to become a homeowner. Of course, if you are planning to move in a short period—say one to three years—then I would recommend a rental.
Q: Someone mentioned that as an owner, I can get a rebate from the government. What is this about, and does it also apply to a coop owner?
A: STAR is the School Tax Relief Program put in place by New York State as a rebate for homeowners. And yes, it does apply to cooperative and condominium owners as well.
In order to benefit from this, the unit must be your primary residence. You are required to fill out an application form and submit it to the NY State Tax Authority.
There is also an enhanced STAR rebate for those over 65 whose income is below $90,500. Note that you can only benefit from one STAR rebate regardless of how many properties you own, and there are some restrictions. Visit www.tax.ny.gov to learn more.
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