What condo buyers need to know: do you take American Express?

IT entrepreneur, Siva Tayi, has just made real estate history--by using his credit card to plop down a $240,000 down payment for his new condo at The Monian Group's brand new Atelier on the Far West Side.

And, he said, he did it for the bonus points! "For every one dollar, I get one point for my airline travel, and I travel quite a bit," said the married father of two who lives and works in Houston, TX, but was looking for a second home to use when he's in New York on business.

American Express announced it would begin to pilot card acceptance for condominium down-payments just this week.

The Moinian Group, one of the industry's most active development firms, boasting a portfolio totaling more than 20 million square feet of office, residential, retail and hotel properties throughout the U.S. and abroad, including 13 million square feet in Manhattan alone, will be the first to roll out the new program.

In 2003, American Express announced its program of Card acceptance for recurring payments at luxury rental properties. Soon after the program was announced, The Moinian Group began accepting the card for rent payments across its luxury rental portfolio.

Based on the success of that program with Moinian and in the industry overall, American Express is expanding its program to enable cardmembers to enjoy the convenience and rewards of paying for condominium down-payments on the American Express[R] Card.

"Our Cardmembers around the country have embraced the benefits of monthly rental payments on the Card," said Kyle Curtin, vice president of Strategy and Business Development, American Express Establishment Services. "Down-payments on the Card bring the convenience and rewards to an entirely new level."

Joseph Moinian, CEO, The Moinian Group, said, "Amenities are a key factor in a buyer's decision to purchase a home in a Moinian Group property. For American Express Cardmembers, the ability to charge their down-payment and earn rewards is incredibly appealing."

Mr Tayi, CEO of Sai People Solutions Inc., an IT staffing company, is paying $1.2 million for apartment 26E at The Atelier, a 46-story, 478-unit condominium development currenlty under construction.

He was charged 10% down ($120,000) and will be billed another 10% in 120 days for a total of $240,000 on his card, worth approximately $2400 in bonus rewards dollars (each of the 240,000 points earned being worth a penny).

Tayi said the option to use his AmEx cardwasn't the deciding factor in buying the $1.2 million two-bedroom condo, but it was certainly a big part of his decision.

"I liked the building, the way it looked and the great views," he said. "The fact that they offered the American Express option means I could use my card, pay it off before they start charging interest and collect the bonus points, so my decision was really based on a combination of all of these things."

Mr Yayi and his family will be able to move into their new condo once it's complete next March.