Page 7 - NY Cooperator July 2019

COOPERATOR.COM THE COOPERATOR —JULY 2019 7 Rafello, a broker with Compass: “Th e debt-to- income ratio is the sum of the monthly main- tenance and mortgage costs multiplied by 12, then divided by your gross income.” Debt-to-income ratio requirements are usually around 30 percent. So from our ex- ample, the co-op would require an annual income of approximately $206,000. Consid- ering the high-tax situation most New York- ers fi nd themselves in, a substantially higher gross annual income would be required to comfortably carry this unit. Joanna Mayfi eld Marks, a broker with Hal- stead, says: “In Brooklyn, it’s a little diff erent than in Manhattan. A lot of agents come to Brooklyn with preconceived notions about debt-to-income ratios and two years’ main- tenance reserve requirements.” It’s lower in turning clients and recommendations. Th ere- Brooklyn; rarely more than a year. Marks re- calls a story of a recent client who wanted to times it’s necessary to steer a client in the right purchase a co-op but didn’t have the required direction, as the last thing a broker or client liquid cash. Th e board wanted a year, but wants is a rejection of a purchase application. she had only about fi ve months. Th e board worked with Marks’ client, eventually agree- ing to accept her with a cash gift for the defi cit steer them to a condo.” As Rafello points out, from her sister. Other Considerations Real estate agent Bruce Robertson, who is with much new construction slated all over also with Compass, cites another consider- ation for potential purchasers when making much more popular. “I never tell them not to the co-op versus condo decision. He remem- bers a young woman who bought a co-op says of potential house-hunters. some years ago and intended to stay there permanently. A year later, her job transferred Don’t just look at the price. Look at the whole her out of the city. Th e co-op permitted her picture. You may be surprised. to sublet the unit for two years, and then for a third. Aft er the third year, she was forced to sell. Subsequently, she lived in various places around the world. Now resettled in New York City, the woman is looking only at condos, as she realizes that works better with her job mo- bility than a co-op would. Directing the Client Any experienced broker knows that the key to maintaining ongoing business is re- fore, client satisfaction is paramount. Some- “If a client doesn’t have the necessary fi - nancial strength,” says Robertson, “I will condominiums are oft en hard to fi nd, simply because there are fewer of them available. But New York, condominiums are becoming look at co-ops, but I show them both,” Marks In the fi nal consideration, be a smart buyer. n AJ Sidransky is a staff writer at Th e Coop- erator, and a published novelist. CO-OP OR CONDO? continued from page 6 stand the need to shelter the city’s homeless, we believe the residents on our block deserve to be consulted before one of our buildings is fi lled with recently released parolees.” Con- struction was halted by an appellate judge in late December to investigate complaints. Ultimately, Tisch ruled that “Th e decision to open a homeless shelter at the premises has a rational basis and is therefore not arbitrary and capricious.” If all goes as planned, the shelter is ex- pected to house 140 single men adjacent to One57—where coincidentally, billionaire Michael Dell purchased a $100 million pent- house. At the time, Dell’s acquisition was the most expensive home in the Big Apple, before Ken Griffi n’s landmark purchase broke the proverbial bank. n Mike Odenthal is a staff writer at Th e Co- operator. CHAMPAGNE... continued from page 6 power plants, would either be exempted or have more lenient limits set, Crain’s New York Business reported. As part of the legislation, the Act also calls for the creation of the Offi ce of Ener- gy and Emissions Performance within the city’s Department of Buildings to ensure the measures are implemented. Not everyone is on board with the Cli- mate Mobilization Act; certain factions of New York’s real estate industry are pushing back, as the legislation would mostly aff ect market-rate condos and co-ops as well as NYC OK’S BILL... continued from page 6 continued on page 14