Brooklyn Real Estate Q&A and Info

This question comes up all the time, especially when I am working with a buyer who is looking to purchase a property that has “rent regulated” apartments, a term that encompasses both rent controlled and rent stabilized apartments.

The New York State Division of Housing and Community Renewal (DHCR) is responsible for the enforcement of the rent regulation laws, and can reduce rents and/or penalize owners that break them.

Rent Control

The older of the two rent regulation laws, rent control generally applies to buildings constructed before 1947.  It limits the amount an owner can charge tenants for rent, restricts their ability to
evict tenants, and ensures that they provide their tenants with essential services.

A maximum base rent (MBR) is established for each rent controlled apartment and if the landlord provides essential services and has no violations, every two years the rent can be adjusted up to 7.5 percent to reflect changes in operating costs.   Tenants can challenge the rent adjustments if they are not receiving the services they are entitled to.

With DHCR approval, rents can also be increased because of increased fuel costs, owner hardship, if the owner increases services or equipment, makes capital improvements to the entire building, or makes improvements to an apartment.

Rent Stabilization

Generally, rent stabilization covers buildings built after 1947 and before 1974, and apartments removed from rent control.  There are approximately one million rent stabilized apartments in New York City.

Rent stabilization also limits the amount an owner can charge tenants for rent, restricts their ability to evict tenants, and ensures that they provide their tenants with essential services.  Once a year the Rent Guidelines Board sets rates for rent increases in stabilized apartments.

Like rent control, rents for a rent stabilized apartmnet may be reduced if the owner fails to provide required services.

So, as you can see, there are not a lot of differences between rent control and rent stabilization.  For even more information about rent control and rent stabilization, go to DHCR Factsheets.

With all the dire financial news, it might seem that the wisest course would be to sock your money away in a mattress, but that is far from the case. The wise person knows that the best investment is something tangible like real estate.

654 people and groups purchased property in Brooklyn during the month of September. Are the numbers down from the same time last year? Yes, but still, the best investment when the stock market is unstable and interest rates are fluctuating is real estate.

For full information on house, condo and coop sales in Brooklyn in the month of September, click here.

A perspective buyer asked me this question the same day it was reported on New York 1 News that three young women robbed a cab driver in “Clinton Hill”.  The women robbed the cabbie on the corner of  Franklin and Lafayette Avenues.  

Well, I’ve lived in Clinton Hill for seven years now, and when I ask the old timers, people who have lived in Clinton Hill for 25 years or more, they all tell me that the borders of Clinton Hill are Park Avenue to the North, Atlantic Avenue to the south, Vanderbilt Avenue to the west and Classon Avenue to the East. 

Of course if you ask some of my fellow realtors, they will probably tell you a different story.  They will often move boundries around so that they can advertise that a property they are selling is in a “hot neighborhood” even if its not.  Let the buyer beware.

Regarding the news story I talked about earlier, the corner of Franklin and Lafayette Avenues is in Bedford Stuyvesant, not Clinton Hill.

According to an article posted on the New York Post Website, home sales in Brooklyn have dropped sharply compared to the same time last year.  “They’re down a staggering 43.6 percent in the last 12 months” the article states. 

The article futher adds that some of the hardest-hit neighborhoods in Brooklyn are Crown Heights, East New York and Bedford-Stuyvesant, where the number of sales dropped 53.7 percent and median prices plunged from $561,350 to $499,902.  

What does this mean for you?  If you plan on selling a property in Brooklyn it means that you’ll be getting less money then you would have a year ago.  If you’re serious about selling, putting your property up for sale at the correct price is essential.  For a comprehensive evaluation of how much your property is worth right now, fill out my Home Evaluation Form.  Its free and there’s no obligation.

If you’re planning on buying, it means a property in Brooklyn, in Crown Heights or Bedford Stuyvesant in particular, are more affordable then ever.  Its a great time to buy!  If you’re interested, use the form below to set up an appointment so we can get the ball rolling and get you into your new home.

cforms contact form by delicious:days

On April 29, 2008 according to the New York Post, Rep. Anthony Weiner (D-Brooklyn/Queens) said in just nine years, the number of renters paying half or more of their income to their landlords has surged nearly 15 percent.   29.9 percent of Brooklyn renters pay more then half their paycheck to rent, up from 25.5 percent nine years ago.

Financial planners say a rule of thumb is that you should not spend more then a third of your income on rent.  What is the reason for this increase?  Affordable housing is ever shrinking in the five boroughs.  This is all the more reason for renters to start saving their pennies and purchase a home.  Owning is better then renting about 95% of the time.

The New York Daily News reports that according to the Real Estate Board of New York’s quarterly report, the average home price in Brooklyn fell 3% to $582,000 for the first three months of 2008.   In contrast, apartment prices rose 13%.  Good news for all the Condo and Co-op owners.

The same report shows that Manhattan Real Estate prices have continued to soar, with the average home price reaching a record $1.6 million .  The board said the prices of co-ops, condos and townhouses were up a staggering 41% over the $1.1million in the first quarter of 2007.   Congratulation to all you Manhattanites.

According to an article in the New York Post on April 29, New York-area foreclosures are up 34 percent for the first quarter of this year, which is far lower than the national rate that roughly doubled over last year.  In Brooklyn, one in every 241 homeowners is now in the foreclosure process. That is more than double the number of Brooklyn households in that situation a year ago.

This is not good news, however, it could be worst.  The article also brings out that the state with the most foreclosures is Nevada, where one in 54 households is in foreclosure.  Now that’s bad.

cforms contact form by delicious:days

Happy Earthday,

Even though we live in a large urban center where there isn’t much green, we can still be good citizens of Earth and do our part to help clean up our environment.  Here are a few tips on being green in Brooklyn.

1. Use Compact Florescent Light Bulbs - According to www.energystar.gov,  if every American home replaced just one light bulb with an ENERGY STAR qualified bulb, we would save enough energy to light more than 3 million homes for a year, more than $600 million in annual energy costs,
   and prevent greenhouse gases equivalent to the emissions of more than 800,000 cars.  That’s amazing!
2. Unplug Appliances That Aren’t Being Used.  Many appliances, such as blenders, draw electricity even though they are not in use.  Unplug and save energy.
3. Use a Notebook Instead of a Desktop.  Notebook computer’s use less energy then a desktop computer.
4. Recycle.   In New York City, every resident must recycle paper, cardboard, beverage cartons, bottles, cans, metal, foil, and fall leaves.  For more information on what and how to recycle, go to  nyc wastes less.  Now that you know what and how to recycle, a good questions is, why bother?  It takes less energy to make recycled products then create products from virgin materials.  In most cases, making products from recycled materials creates less air pollution and water pollution than making products from virgin materials.   We all want clean air to breathe and clean water to drink, so recycle!
5. Use Glass Storage Containers Instead of Plastic.  Storing food in reusable glass containers instead of plastic wrap or plastic “tupperwear” helps the environment.
6. Turn Lights Out When You Leave a Room.  Leaving a light on when there’s nobody around to make use of it is a waste of energy that you will definitely feel in your wallet
7. Take 4 Minute Showers.   By reducing your time in the shower from seven minutes to four, you could save over 6,604 gallons a year.
8. BYOB (Bring Your Own Bag) When Shopping.  The plastic bags you carry your groceries home in are horrible for the environment.  Bring your own cloth bags to the store instead.
9. Install a Dual Flush toilet.  If you are remodeling your home or apartment, considering installing a dual flush toilet.  It often takes far less water to get rid of “number one” then it does for “number two”.    Studies of dual flush toilets show that using a dual flush system can reduce water consumption by up to 67%.
10. Take Public Transportation.  To me, the price of gas is making riding the bus or subway look better and better all the time.

These are just a few suggestions on how to help keep Mother Earth clean, beautiful and life sustaining.