Your guide for buying in a new development

Closing a line of credit to look fiscally wise actually has the opposite effect, Kliegerman says.

As the housing market reels from the fall it took in back 2008, buying a pad in a new building is a smart idea, says Stephen G. Kliegerman, president of Halstead Property Development Marketing.

“You’re starting to see more new developments come back to the pipeline,” he says.  “In 2012 we’ve seen a real incredible turnaround in the ability for developers to provide new condominium product that will hit the market anywhere from now through 2012, 2013 or 2014.”

Combine that with low interest rates (expect 2 3/4 to 3 3/4 percent interest, Kliegerman says), higher rents due to low vacancies and the opportunity to build equity by paying your own mortgage, and it’s no wonder that the case is being made for ownership. If you’re ready to buy, Kliegerman says primarily you need to ensure you’re fiscally ready to do so.

“The first thing you should do is make sure that your credit is in good shape. No. 2 is, you need to have a down payment. You’re probably going to be putting down 20 percent, so you want to start saving money. Usually a developer will have a relationship with a bank who is their preferred lender and they’ll send you to that bank to get qualified.”

At the bank,  have ready two current paystubs, your latest two years of tax returns, a letter of employment and any bonus history you have for the past two or three years, he says. Plus: “They’re gonna want to run credit, and they’d like to see credit over 700.”

Once your finances are squared away, your search can be that much smoother. If you’re looking in a new development, Kliegerman advises finding a developer with a solid reputation.

“Almost every developer at some point has somebody who isn’t satisfied, but what you’re looking for is somebody with a healthy track record,” he says. “Someone who responds to problems if they occur.” To find a good developer, Kliegerman advises searching on the Internet (maybe the building you’re interested in has the developer’s bio on its website), researching the broker (“We turn business away from developers that we don’t believe have the ability to provide quality housing stock because we don’t want to be associated with the problems that come later,” he adds) and asking friends who have bought spaces of their own.

Kliegerman also recommends snagging a place with a 421-a real estate tax abatement, if you can find one. This means that the developer — through means such as providing affordable housing or being in a zone that encourages development — is able to lower real estate taxes for a number of years.

“The number of developments that will be receiving these benefits in the future is dwindling fast, making them a highly coveted commodity,” he says.

When you’ve found a property you like, it’s important to move quickly

“Look for any building that’s being constructed or any vacant land and start to do research,” Kliegerman says. “Contact your local broker if you have one, take a look online through the Department of Buildings to see building permits have been issued so [you] can see what’s being built on that — is it residential, is it commercial? Then I would try to contact either the broker or the developer early on to get on their predevelopment list, because once those buildings come up to market, basically we go down the list: We call those people who called us first. So the earlier you get in, the better ability you’ll have to get an apartment there [and] to get your choice of what’s available. We start taking names sometimes the day that construction starts or even sometimes before, and we keep those lists all the way until through when we open. It could be anywhere from 12 to 24 months, typically.”

Help for those with poor credit

“There are ways to enhance your credit and there are credit counselors that are very good at helping you do that,” Kliegerman says. “The worst that you can do is start to close lines of credit, believe it or not. Every time you close a line of credit — this is what I’ve been told —  your score goes down because the idea is that you can’t afford to have the line of credit. You actually want to establish more credit — you don’t want to use it, you just want to establish it. And don’t be late. The worst thing is late payments.”



News
Entertainment
Sports
Lifestyle
Local

Mayor pledges lower greenhouse gas emissions from New…

Just hours before the start of the People’s Climate March on Sunday, and two days ahead of the United Nations Climate Summit, Mayor Bill de…

National

The best places to see the Northern Lights…

A large solar storm hit the Earth's atmosphere and will tonight illuminate the skies with aurora borealis -- also known as the Northern Lights.

Local

Police officer killed Sunday morning Bronx crash, 8…

One NYPD police officer was killed and eight other officers were injured early Sunday morning when the van they were traveling in crashed  in the…

National

Pennsylvania police shooter manhunt near home of suspect's…

A police manhunt intensified on Friday for the gunman who killed an officer and wounded another in an ambush at a Pennsylvania police barracks a week ago.

Television

'How to Get Away with' mischaracterizing Shondra Rhimes

Shonda Rhimes read Alessandra Stanley's New York Times piece about her being "an angry black woman" and "a romance writer" and it did not sit well with her.

Gossip

New nude celebrity selfies leak … and Clay…

A new batch of nude selfies of Rihanna, Kim Kardashian, Vanessa Hudgens, Lake Bell and Avril Lavigne hit the web and Clay Aiken has something to say!

Television

James Spader's route to villainy on "The Blacklist"

In honor of the second season premiere of "The Blacklist" tonight, where James Spader plays good guy/bad guy Raymond “Red” Reddington, it’s a good time to look back at Spader’s…

Television

True Detective

NFL

Jay Cutler takes Marc Trestman's coaching to heart

While Jay Cutler turned to an autobiography on the man who would be his head coach, Trestman had personal experience with the player.

NFL

Jets vs. Bears: 3 things to watch

Jets fans likely chalked up Monday's matchup with the Bears as a loss when the NFL schedule came out. But given their team's play so…

NFL

Rashad Jennings carries Giants in first win this…

Rashad Jennings, who came to New York from Oakland last year, by way of Jacksonville, was highly coveted this offseason by general manager Jerry Reese.

NFL

3 things we learned as Giants pick up…

The Giants picked up their first win of the season over the Texans.

Career

Here's how to make the most of visit…

You’re primped, you’re looking polished, you’re prepared with a stack of resumes. Job fair hunters, unite! There are a few things to keep in mind…

Education

Learn how to study effectively and stop cramming…

Picture this: It’s midterm week, and college students everywhere are trying to frantically memorize all of the math formulas, political theories and historical facts that…

Parenting

How motherhood inspired Bethenny Frankel's new book

Bethenny Frankel's new children's book is about how her daughter and dog didn't always get alone.

Parenting

A sneaky way to serve kids fruits and…

"My First Juices and Smoothies" gives smoothie recipes for kids.