Op-Ed by Shloma Hecht, Licensed Real Estate Salesperson in Crown Heights
Growing up in Crown Heights offers so many beautiful advantages and conveniences – from the deep sense of community and high quality of life, to thriving local businesses and excellent schools.
As community members, our life stages in the neighborhood often mirror our growth as individuals and families. We finish school and get married, move out of our parents’ homes and into our first apartments. With G’Ds blessing, we have children and move into bigger apartments, while saving up every dollar to (hopefully, one day) buy a condo. If we’re lucky enough, eventually, we trade in the condo for a house in Crown Heights.
In other words, we continually upsize.
Fast forward many years, we start to marry off our children, and perhaps we don’t have a need for the 3,500 sq-foot house anymore. Maybe we’re tired of dealing with floods, or shoveling the snow, or repairing leaks in the roof. Maybe the house has started to feel a little too big now that our kids live in family homes of their own. It could be time to downsize.
Each one of these steps in life is a blessing – but there seems to be a lot of shame about the process. There shouldn’t be! Even more so, selling our townhome in exchange for a smaller condo actually presents us with a number of great upsides.
As we all know, Crown Heights has very limited inventory – and very high demand. While the housing crisis is a great challenge, families who bought townhouses two or three decades ago for $100-200k now find themselves in an extremely fortunate position.
Today, it’s common for those same houses to sell for upwards of $1.8 million, with many going for north of $2 million. Some families in the neighborhood are quite literally sitting on huge equity.
This opens up opportunities for many of us to sell our houses and move into a condo at half the price. In many cases, that could mean pocketing a million dollars in equity, and saving it for retirement – while trading the headaches of home upkeep for condos with amenities and elevators.
While this isn’t a solution to the housing crisis, it can help ease it, and make room in Crown Heights for the next generation to raise their families. Sound financial strategies, greater ease and mobility, fewer headaches, and staying in our beloved community – where’s the shame in that?
Great point.
Please stop *giving back” to our community and simply start charging affordable rent.
And that goes to supermarket owners as well. We just need the prices to be affordable. We can pay for our own Bris.
Why are we traveling to Kollel store or Bingo?! Reduce the supermarket prices in CH and will shop local.
In selling the houses for 2 million so your neighbors kids can’t afford it and instead it ends up being bought by an investor who just wants to park his money.
Absolutely wrong,!!!!
At every point in time, the price of a house was considered high. It was and probably always will be, for most people, a huge undertaking. How to get the deposit. How to get the mortgage. How to know if mortgage payments will be met. Buying a house for 250k decades ago was considered astronomical and risky. And here we are. Those who sold to me for 250 bought it for under 100, maybe less. Buying a house is a big deal. If you can’t make it happen, or can’t stomach the risks and unknowns, don’t. Live in an apartment.… Read more »
Compare average salaries to average housing costs then and now and you’ll see it’s definitely gone up quite a lot
This real estate agent wants old people to move out so young people can move in.
Instead investors will buy it and leave it empty or airbnb it and the housing problem will just get worse.
When my grandparents bought their house on Crown Street in the 60/70s, the chcc was helping people with down payments.
What shame?
Which young couples have 1.8-2mil dollars to buy a house?
The new generation with a lot of people refer to themselves as cash advance guys. They make more money then we ever made. Don’t worry about the new generation there good.
You’re really taking a minute amount of yungerman, and saying everyone’s like that. It’s a minority.
If someone were to build a beautiful condo building for adults only. 1 and 1.5 bedrooms, nice size kitchen and dining living areas, shul gym and maybe a pool on site, with a shabbos elevator, it would free up the same amount of houses as there are units.
Even if they cost one million for 1000 sf, people are sitting on houses that they can sell to locals looking for houses for much more, and more inventory, will cool the pricing a bit.
We BH live in a large house. Everyone is grown and most rooms are empty yet moving into a condo isn’t an option. Our children, grandchildren, nephews etc know they have a home to stay when visiting. The money we would profit isn’t worth it before to lose a ‘home’
The rebbe was actually against downsizing!!
Can you point me to where the Rebbe guides someone who is concerned about their children fighting over the yerusha after 120?
The title is funny.
Why would someone be ashamed of selling their house to downside if the wish?
A better title would be more appropriate
Wonder I what the tax would be when you downsize. It might not be worth it. Uncle Sam will take all the gain
for many, there would be a huge amount of capital gains tax plus
property tax could be much higher, depending on their eligibility to carry over taxes from their old home or it will be reassessed based on a new purchase price…
No Do not listen to bad advice!!! Every story is different! Enjoy your home as long as you can! If you need the money, you can rent out a bedroom or a basement!
Some may find it unsettling that a real estate agent is actively encouraging people to sell their homes, knowing well that the buyers aren’t local families looking to settle down. Instead, they are large, wealthy families or real estate investors who purchase these homes to rent out at above-market rates, making it nearly impossible for others to buy a home. It’s time we recognize what’s happening. Without naming names, there is a particular real estate agent who persuades owners to sell their homes for much higher prices than expected, simply so she can secure a larger commission. While I support… Read more »
Making as much as one can in legal fashion, is not greed. Calling it greed, is jealousy.
Just because something is legal doesn’t make it the right thing to do. Another point, just because something is legal doesn’t make it mutor al pi halocho
Driving up prices, without going into the details of how they do it is absolutely against the Rebbes wishes and making many families struggle.
That is greed.
It was a very good advice from this real estate broker. The price will go down and it is time to capture this high equity before this fall. Be informed before to judge an excellent advice that nobody will follow!
The real crisis is the Lubavitch real estate agents driving up the price, as well as outside investors. Can something be done about this? Take your investment money and go to a different community…
Right now, there are about 5-10 homes for sale in Crown Heights, all bought by the same “Lubavitch” investor and being sold through the same agent….
Why is this okay? What can be done about this as a collective?
Similar to how many people bought their homes 40-50 years ago through the system of Shebro, etc.
Very good advice! Hurry up! One thing to note about the trading for the last two weeks , is the many large daily moves in the Dow Jones. Big bear markets frequently begin this way, with a big increase in daily volatility, exactly as seen NOW! The panic selling of the March 2020 flash crash began, by noting the increase in daily volatility – oversized daily moves to the up and downside. So, bear markets also see big daily advances? Yes, they do! During the Great Depression Market Crash, the Dow Jones saw daily advances of 10%, and more from… Read more »
Yes, in other communities people can downsize. But our children and grandchildren live out of town because they are on shlichus or they couldn’t afford to live in crown heights. We have to keep our homes available for them when they need/or want to come to “Kan tzivah Hashem es habracha”.
Crown Heights has a real shortage of eligible places for seniors to move to, if they wanted to downsize and sell their home. We need buildings that cater to the needs of seniors.
sounds like a business opportunity. maybe you make it happen?
Who can afford a $6-8k mortgage? And paying full tuition. Not sure your op-ed makes much sense…
Don’t take any advice from a CH real estate agent. It’s hard to believe they have the interest of the community in mind.
All I read was: I’m a realtor and you need to sell because I can’t make money because nobody is moving.
Real estate agent greed has significantly been a contributing factor in these ridiculous prices as well!
If people sell will you make a neder to only sell to Lubavitchers, even if the Chinese foreign investors or blackrock outbid with cash?
Haha doubt it
CH house prices will only continue rising. Why would an owner sell and miss out on all of that future gain? To pay your commission? That’s not a smart move. There are better ways of getting equity out of a property.
While these homes are quite valuable and in many instances unexpectedly so for the couples who purchase them years ago. But they also create a huge nisayon for the children who inherit them or even if they are already thinking about inheriting them. Special brochos from above are needed for a family to peacefully survive inheriting a crown heights home. (you might ask, hey people all over inherit larger sums all the time? But the disproportionate value of many of theses elderly people’s homes compared to their actual financial state is what causes these complicated situations….. The author should have… Read more »
Sorry but this is ridiculous . I was told by. Neighbor to sell my house tbat my parents lived in and I now live in 50 plus years because “ too old “ for the block. This is chutzpah . No one is obligated to make room or sell to any one . You want room for younger people build decent duplex condos or build instead of the satmar who are taking over or the shelters . What makes you think elder people should go into a one bedroom ? To line your pocket ? Where do you expect our… Read more »
Everywhere is expensive
In Deal houses are 5 million and up 14 million a nice house
In Miami ocean front 10 million cheap 25 million nice apartments
Crown height is cheap
Compared to most places
All Nj. Beach area houses in the millions
Plus the taxes you have to pay
Maintenance
Crown heights is for far cheapest place
In Nj any house 1. Million you pay 30.000 just property taxes
And up
Excuse me, but what are you talking about? The places you named are luxury places where only very rich people can live. Crown Heights is a Jewish community where people of all economic levels live (or want to live)., where are our children’s teachers supposed to live? Are you expecting them to commute in from hillside, NJ or Kingston, Pennsylvania? The vast majority of the people who own homes in Crown Heights proper would never ever be able to afford to buy them today (nor do they claim to be able to). It’s the crazy meteoric rise in Brooklyn real… Read more »
Who said it’s CH or a beach house?
There’s many cheap opportunities for people who aren’t moving on shlichus for nice heimishe community’s to live in.
Why is it CH or a 30mil beach house?
The real shame is that while young couple are trying to save to purchase a home we have these greedy landlords that charge these “cash fees” to secure a rent stabilzed apartment (not legal, would love to see what would happen if they tried to do that to someone not from our community)
I am paying 500 Hidden Cash fees. These landlords deserve to be exposed. All they need for some one to find out……..They cant fargin one rent stabilized apartment. But wait, We cant call 311 If theres mold in the apartment. I would never dare do that. So we sit quiet. Hashem sees .
…As often as you can if you’re dealing with dishonest landlords. It’s the only way to hold them accountable.
311?
Pay the fee, record them and then call them after moving in for the money back. A simple DHCR complaint will cost them a lot more aggravation than the money.
Or we can rent apartments in the Center of Crown Heights to fellow Yidden
As senior citizens, it is not practical to downsize. As it is, we live in a one-family attached house, but we don’t have enough room for our out-of-town children and grandchildren when they come to visit. Many of the children have to sleep on the floor or elsewhere!
Downsizing doesn’t make sense if we want to have space to enjoy our precious family!
There are currently a few large apartment buildings (near Lefferts and other areas) that have over 150 units that house questionable tenants who often bring in illegal activity, etc…
Is there any way to purchase those very large and crowded apartment buildings from the city and relocate the non-law-abiding citizens elsewhere?
And then perhaps these can be renovated, and open up 300 new units, plus provide a safer Shchuna for the entire CH community?
I don’t know. If you care enough you’ll find out the answer
We are a family of 8 living in a one bedroom.
Its so sad that we cant find a decent priced apart for our family, let alone a house!
Baruch Hashem 8 healthy children in a one bedroom. I know the insanity of it.
People that are fortunate to have massive equity need shamelessly to be advised in their best interest not in an Op-Ed of a realtor fishing for deals. A married couple with equity over 500k needs to pay HUGE taxes IRS and NY state and City also commission etc. Is not like people pocketing money. Also sounds stupid to move to an apartment pay HOA and high taxes to have less value . You sound like a kid fantasizing respectfully. Only gullible uneducated people can fall for it. If same couple access equity loans or lines of credit are TAX FREE… Read more »
I’m sick of the question, “How are you managing in your small apartment???”
Maybr im not, maybe the smile on my face is just hiding an extremely unhappy person! does anyone really care! Seriously, cant we make affordable housing for chassidisher families that want to stay in the Rebbes Shchuna. or are we saving it for couples that are not chassidish.
We’re living in ch for years in a rented apartment , living here because we deeply value being in the Rebbe’s neighborhood . 770 , is an integral part of our lives and our children’s lives . We don’t look to run away for Shabbos and Yom Tov , We want to be here – in 770, and are here almost all the time . We are devoted mechanchim & mashpiim who teach in our CH mosdos, give shiurim and host farbrebgens and guests all the time – in our very limited quarters . We haven’t yet bought a house… Read more »
The Rebbe never once said how chassidish you need to be to live in CH, everyone was welcome. In fact, the Rebbe never said a Chassidish family needs or is entitled to live in CH. Often he was in favor of living elsewhere!
Lived in an apartment for a decade, then bought a house in east Flatbush, first Jew on the block. Now there are a bunch more. Yes, the prices here went up also, but go further south, and the prices are still relatively affordable.
No need to complain about CH prices, just move further south. Two cars payment and mortgage for a house in east Flatbush, combined, is cheaper than just a mortgage in CH today…
We could make money selling it but the taxes would cost nearly 1/3 what we sell it for.
Doesn’t make sense in the long run.
If our kids inherit, it will go to them tax free.
If your kids inherit it, what steps are you taking to ensure everyone and everything stays peaceful?
Notwithstanding the capital gains tax hit which can be avoided with the step up in basis which occurs at inheritance, selling your home, which holds it’s value during inflation, for cash which becomes more worthless is not good financial advice. Also, if the real estate values drop so will other investments.
Why isn’t East Flatbush the solution? No reason to downsize. That would take away the availability for the young couples that are needing those. If a growing family is looking for a (more) affordable house (although it’s getting expensive there too) you can only search East Flatbush. Or Brownsville. And that’s a Bracha cause once Yidden moved there cause they ran away now it’s slowly filling up.
Because senior citizens need a pharmacy, grocery and shul in walking distance and most of EF can’t support that currently.
Pharmacies abound here.
Shuls are scarce, but it’s an easy fix. All you need is an empty room and 10 committed Jews.
Because of flippers were in east Flatbush, before anybody thought of moving there and the prices are ridiculous.
People are realizing now that one house in east flatbush isn’t big enough or if about family and people are starting to buy it the house next-door that’s the only way they could survive
Good point thanks for sharing and enlightening
Seems like all the tax professionals don’t understand how taxes work. Firstly, all taxes in the US are a percentage of the money earned/gained, never a flat fee. Secondly when selling a personal home owned for as long as everyone targeted in this article have owned their homes, the tax would be a capital gain, not income. Todays Capital gains rate ranges between 0 and 20%, depending on the taxable income of the seller on their latest tax return. Here’s the big one. The IRS gives an exclusion to homeowners who meet certain requirements (all of them are simply requirements… Read more »
Your numbers don’t reflect the reality.
Houses purchased in the early to mid ’80s usually cost less than $250k and are worth more than $1.25 million today.
$250k for improvements? Nope
Capital gains only 10%? No, again
Finding a knowledgeable and trustworthy lawyer and accountant who can really figure it out to fit your situation and keep it with halacha and figure out trusts, etc and a way to keep the peace among the children, in 120 years? Sadly, also a no.
Who needs an apartment-living lifestyle when I can live more cheaply staying in my house, b”H, ka”h?
Maybe I’d consider moving out but still owning the house someday — renting out the house.
But selling? Not now and not for a long time if ever, please Hashem!
How stupid does the author think we homeowners are?
And mortgage interest rates are sky-high: who wants that if I were to sell?
If I ever want you live somewhere else, it is better to rent out my house: not sell it — at least for now.
And if my family has to “suffer” the “ordeal” of inheriting the house, well, at least they will now be millionaires: I think that will console them.
Shlomo is great!
When your kids get married you need a bigger house if you want to be able to have them.over with their families BeezH. Very silly to downsize at that stage…