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By Susan Singer
Friday, November 07, 2008
We’re all focused on green these days…not just how to make it, save it and spend it but how to live a lifestyle that’s good for us and the planet. As New York City’s first certified eco-broker, I’ll share lots of tips on green living and real estate, but given current events I’d like to open my debut column with some more general thoughts.
In today’s challenging environment we all think twice before reaching into our pockets, much less committing to a long-term relationship…I mean, investment. While property in Manhattan has symbolized a great investment vehicle for several years and many a cocktail conversation has revolved around the staggering appreciation of a friend’s or your apartment, the times they are a-changin’. So, how do we adjust to this shift in perspective and lifestyle?
If you’re looking to buy, the first thing to keep in mind is that this investment is also your home—after a long day at work you want to come home to a place that makes you feel good and comfortable. Do you like to entertain…how’s the kitchen? Sit down in the living room and imagine yourself living there. The brokers won’t mind; they’ll think you really love the place—and we all need that these days!
While you shouldn’t ignore the bottom line—and, trust me, your bank won’t—you’re not buying a spreadsheet you’re buying something more akin to a high thread count!
Second, if you’re a buyer, there is no way to predict the bottom of the market, so you can’t wait for the most propitious moment to catch the wave. Most people nowadays plan to live in their new home for at least three years, usually five, at which point the market will have rebounded to a level that will put you in a comfortable position relative to today’s pricing.
Yes, the market may see further drops but if you really like the property you’re eying, then buy it. If you have a good broker he or she will tell you how long it’s been on the market, what price drops to expect and what purchase price is the best opportunity for you.
The advice I give my buyers is that if you’re in the market for new construction buy green—that is, energy efficient and sustainable property. I became an eco-broker more than two years ago because I’m committed to doing whatever I can for the environment, but that’s not the only reason to buy green. During the next few years, green building technologies will be mandated. Even today, most new developments are implementing some level of green standards.
The building industry now rates construction with a point system labeled as LEED (Leadership in Energy and Environmental Design), which is a third-party certification. Honestly, while this is an important step in the evolution of green building, the levels of silver, gold and platinum can be immaterial to how healthy or sustainable a building is. A building can gain or lose points by proximity to public transportation or the number of parking spots in the building, so don’t be swayed by irrelevant statistics.
You can visit my website susansingerspaces.com to learn more about this subject.
What you might want to focus on is how much energy the construction saves you in your monthly bills (i.e., impact on the environment) and how “healthy” the building will be to live and breathe in. This translates to good business investment strategy, because when you go to sell the apartment in five years you’ll be competing with more new, green construction and the buying public will be even more committed to that philosophy and lifestyle.
Susan Singer, the senior vice president of Corcoran Real Estate, is NYC’s first certified eco-broker. She can be reached at sin@corcoran.com or 917-207-6368.
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