If you’ve always dreamed of a brand new, ultra-modern apartment in a high-rise glass building with floor-to-ceiling windows, you’re not alone. Many believe buying new development properties is the best option for modern, high-end living in New York City. These buildings often come with amazing amenities like an indoor pool, a roof terrace, or an on-site gym. What else could you ask for?
If you’re already packing your bags at the thought of one of those polished paradises, read on to discover what to consider when buying a new development apartment. We’ve reached out to our agents to get their advice on all the pros and cons for you.
You’ll Have To Make Sacrifices
It’s general knowledge that apartments in new development buildings tend to be more expensive than their lived-in counterparts. However, if you’re dead set on a brand new place to live, but your budget isn’t flexible, then prepare to make sacrifices.
The first one is space. Be prepared to downsize from the place that you’re occupying now and enjoy other upsides instead. As already mentioned, new development buildings often come with roof decks, a lounge, a TV room, or a gym. If you start looking at these as additional space, a smaller bedroom won’t bug you that much.
Another strategy that can help cut down the price is looking in a less expensive neighborhood. Triplemint Member Experience Associate Robyn Giannini knows; “New development will be less expensive in some neighborhoods in Brooklyn than lived-in places are in the most popular neighborhoods in Manhattan. Therefore, if you’re flexible with neighborhoods, you can score a great deal on a new development apartment.”
Competition Isn’t Sleeping
If you’ve been browsing the market for a while and you’re very familiar with the NYC housing market, you already know that applying for an apartment feels as daunting as interviewing for your dream job. Instead of having the luxury of looking at a few places and just buying one of them, you’ll be facing other interested buyers in the race for the best apartment.
When buying new development, it will often feel like trying to grab the last discounted pair of designer shoes at a Black Friday clearance sale. Everybody wants the same thing and they’ll stop at nothing to get it.
You’re Entering Untapped Territory
Unlike lived-in places, which have a chain of title (a history of who has owned the apartment before), you’ll be the first tenant. This has its upsides and downsides.
Have you ever bought a brand new car and enjoyed that distinctive “new car smell” when driving it or slid your hand across the polish while admiring how shiny it was? That’s what living in a brand new building feels like.
Triplemint Agent Lawrence Lee, who often works with new development, agrees with that feeling. “If you appreciate that aspect of being the first person in and the countless, new amenities, it’s very hard to deny that it’s attractive,” he tells us. However, entering untapped territory also means that there might be certain issues with the building that haven’t been addressed yet, just because it’s so new.
Your Return on Investment Could be High
If you’re not looking to live in your new apartment, but rather buy it as an investment property, you may have made a smart decision. “Your return on investment could be very high,” explains Lawrence.
In the past, investors used to purchase new development before it was built and would experience high appreciation. Even though this effect has weakened in the past few years, this strategy is still something you can look into. Ask your agent for more information if you’re looking to invest in the future.
Wave Extensive Paperwork Goodbye
If you’ve developed a phobia of bureaucratic steps and the associated paperwork, this next point will make you pick up the phone immediately and ask your broker for a new development apartment.
“Buying new development requires next to no paperwork,” says Lawrence. “There is no application and no co-op board that will interrogate you.”
This is one of the reasons why foreign nationals are particularly interested in buying new development. In terms of money, there are still closing costs and transfer taxes you’ll need to factor into your budget. However, “these are likely negotiable,” advises Lawrence.
A high return on investment, brand new finishes and amenities, less paperwork, and being the very first tenant are all positives that make us jump up and down with excitement when buying new development.
So if you’ve always wanted to live in one of those iconic NYC glass towers with floor-to-ceiling windows and attractive amenities, don’t hesitate and contact us today.