How to avoid $1,500-a-month rent penalty from an apartment in Brooklyn
Renters can avoid the $1.5 million annual rent penalty for renting in Brooklyn by paying a monthly mortgage payment of $700,000 to a bank.
That mortgage payment can only be paid off if you live in a city where the average annual rental price is less than $1 million.
If you’re paying the rent and you want to save money, you can buy a condo or house in Manhattan, according to the Better Business Bureau.
That’s not the same as living in a single-family home in Brooklyn.
But if you’re thinking of renting a condo in Brooklyn, you need to understand the difference between a Brooklyn condo and a Brooklyn apartment.
According to the Federal Reserve, a Brooklyn rental property has a median sale price of $2.2 million and a median rent of $1 per month.
A Manhattan condo has a sales price of just $1 and a rent of about $700 a month.
The difference is that in Brooklyn the median sales price is $1 to $1 .7 million.
If the median sale value was $2 million, it would have a median rental price of about 2.5 percent of the median market price.
But a Brooklyn-area condo does not have a sales or rent rate that is lower than Manhattan, the Federal Bureau of Investigation reported in 2015.
That means that the rental properties are subject to a higher amount of capital gains taxes.
It’s also important to know that if you do decide to move to Brooklyn, don’t let the high-priced property you rent out in Brooklyn become a negative factor in your rent payments.
You can reduce your monthly mortgage payments by using a loan calculator, a financial planner or a real estate agent to determine how much your payments are going to be.