International client’s condo close to Goldman Sachs headquarters

International client’s condo in a new residential building close to Goldman Sachs headquarters. Larger than most one bedrooms, 755 sqft Alcove Studio facing South and West at Tribeca’s ultra luxury tower 111 Murray Street.

Read full article here: International client’s condo close to Goldman Sachs headquarters

Tips On Buying International Real Estate

BY DEBBIE CARLSON

JULY 31, 2015

A strong U.S. dollar isn’t just making vacations overseasmore affordable; a brawny buck puts foreign real estate on sale, too.

Jason Kumpf, real estate expert at USForex, says their clients are “absolutely” using dollar strength to justify buying international real estate, particularly in continental Europe and the U.K. Even Canada is attracting more Americans now that the loonie is at about a 20% discount to its U.S. counterpart, says Kumpf.

Wei Min Tan, a residential condominium specialist at Rutenberg Realty’s Castle Avenue, says select buyers will always want to invest in a top-tier city like London, but a wave of buyers is also favoring countries with lower costs of living, including Malaysia, Thailand, and Costa Rica.

“They may see it as a place to retire in the future. Here [retirement] can cost so much, there it’s a fraction,” Tan says.

International investors snapping up New York property

International property investors snapping up New York property - recent interview by The Cooperator.

Slicing the Apple

Foreign Buyers Fuel New York City

By Elisa Drake

Soba dish

Soba noodles as appeared in Broth of Life  Says a thousand words about the international lifestyle in Manhattan where Japanese is one of the favorite cuisines.

New York Property Agent

Weimin Tan, New York property agent, brings client See Chan to view 2BR condos.  Featured on Manhattan's #1 real estate show, Open House NYC.  Weimin is originally from Asia and speaks English, Cantonese Chinese, Malay and conversational Mandarin Chinese.  He is a specialist with high net worth foreign / international investors  interested in Manhattan property.

New York Investment Property

New York investment property our investor clients buy are divided into condos (residential) and buildings (commercial or residential). 

Residential condos are popular especially amongst international / overseas buyers because of the simplicity of ownership.  Condo ownership requires minimal maintenance as the monthly common charges paid basically covers the required maintenance activities.  A tenant or renter who has issues while staying at a condo can easily call the building staff to fix the issue at hand, eg leaky toilet or ineffective heater.  Comparatively, if an investor owns a building, the investor needs to address issues like the roof, boiler, heater etc that may need repair.

Obviously there are advantages and disadvantages of owning a condo unit vs a building.  Here is a rough breakdown:

Condo:
Upside - ease of ownership, simple to understand
Downside - lower rate of return

Building:
Upside - higher rate of return
Downside - more management intensive, higher cost of entry

Buying New York Property - Our Services
New York Property articles and media appearances
New York property FAQ


View New York investment properties at Castle Avenue Partners.  We specialize in international and overseas clients interested in New York investment property.
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Foreign, international buyer, New York investment property
New York investment property

Buying New York Property

New York property, specifically Manhattan, is popular amongst high net worth individuals internationally because of it's brand value and ability to sustain value even during economic downturns. 

Manhattan has performed better than the broader U.S. real estate market and comparable major cities such as San Francisco and Los Angeles.  Relative to peak, Manhattan property decreased by about 20 percent during this economic downturn.  This is compared to the 40%+ decreases in cities like San Francisco and Los Angeles. 

Below are common questions asked by our overseas / international clients about buying New York property. 

Can foreigners / overseas buyers purchase property in New York?
Yes. Many foreigners buy property in Manhattan because of the brand value and appreciation potential. They often purchase as a pied-a-terre (vacation home), or investment property. A large percentage of our clients are international, from countries like Malaysia, Singapore, Hong Kong and China.

What type pf properties are popular amongst foreign or international buyers?
There are two categories of apartments, condos and co-ops. We recommend condos because of the higher appreciation and investment value. Co-op buildings often restrict ability to rent and perform renovations and do not make good investment property. The process of buying a co-op is subject to board approvals which dramatically prolong the buying process. The value of a condo, on a per-square-foot basis, is about 20 to 30 percent higher than a co-op. However, the appreciation potential and demand are higher as well.

Besides apartments, our international clientele also purchase townhouses, mixed use buildings and commercial buildings.

What are the expenses associated with owning a property in Manhattan?
For apartments, the main monthly expenses are taxes, common charges, insurance and depending on whether financing was used, mortgage principal and interest.
New development buildings often have a tax abatement which dramatically reduces the monthly tax amount. Without abatement, annual taxes are often between 0.5 to 1 percent of the property’s value. Common charges average $1 per square foot per month and it goes up or down depending on number of units and amenities. Insurance is roughly $500 to $1000 per year and on a monthly basis, a relatively smaller expense item.

Is financing available for foreign or international buyers?
Yes, mortgage loan financing is available and can be obtained either through a mortgage broker or directly from the bank. Since the credit crisis, lenders have tightened credit criteria and will require about 40 percent as downpayment from a foreign buyer. Most mortgage products for foreigners are ARMs (adjustable rate mortgage) but some lenders offer 30 year fixed mortgage to foreigners. We will refer our foreign clients to reputable mortgage brokers or banks to help arrange financing for your New York property.

What are closing costs?
Closing costs are roughly 3 to 5 percent of the loan amount. This includes mortgage tax, transfer taxes if purchasing a new development, attorney fees, recording taxes and other administrative expenses.

Who pays the broker fee?
With New York Property, broker fees are paid by the seller. When the seller’s broker agrees to list the property for sale, a certain percentage is agreed upon as commission. If the buyer is represented by a broker, this commission will be split with the buyer’s broker. If the buyer does not have a broker, then the seller’s broker keeps the entire commission. Hence, it is in the best interest of the buyer to have broker representation to help identify the right property and negotiate the best price.

Visit our Overseas Buyer's Guide
New York Property FAQ
New York Price Appreciation History
New York Investment Property Overview
Buying New York Property - Our Services

 
Wei Min Tan is a real estate broker and investor focused on investment property in Manhattan, New York. He can be reached at tan@castle-avenue.com

Buying New York property from overseas, condo and renter management

After our overseas investor client buys an investment condo in New York, the next step is to market to potential tenant renters.  Here are the steps we perform:

1.  Market to potential renters using various marketing channels
2.  Screen potential renters / tenants (credit score, references, salary, work history)
3.  Arrange for tenant move in
4.  Set up automatic transactions for tenant to automatically deposit monthly rent checks into owner's account. 

The system above removes the need for owner to pay monthly property management fees.  Property management fees are anywhere from 3% to 10% of gross rent.  Since Manhattan tenants are usually high income and good credit quality individuals, there is usually very little management necessary.

As the need arises where the tenant requires attention, we will be the point of contact to help resolve the issue at hand.

Visit our Overseas Buyer's Guide
Historical price appreciation
New York property articles
New York property search
New York investment property overview
FAQ

Wei Min Tan is a real estate broker and investor focused on investment property in Manhattan, New York. He can be reached at tan@castle-avenue.com

Foreign / Overseas parents of New York University, Columbia students. Buy Manhattan property?

For affluent parents of students attending NYU or Columbia, a common question is whether to buy a condo investment property in Manhattan for their child to live in.  Of course, there is no right answer.  Here are high level pointers:

* Staying at the dorm is more expensive than renting an apartment outside.  The dorms, along with the meal plans are revenue streams for the universities.  Columbia and NYU are major landlords and own many properties, land and buildings.  They understand the benefit of owning.

* Renting is the lowest cashflow option.  It's cheaper than staying at the dorm and does not require the large capital outlay associated with buying.

* Buying a condo or building is obviously the long term wealth building strategy.  In this market (because prices have depressed enough).  However, Manhattan property requires tying up at least 40 percent down to break even with rent.  This is capital that may be more productive in another investment. 

Foreigner / International Buyer Mortgage Loan Financing for Manhattan New York Property

Foreign and international buyers of Manhattan New York property can obtain mortgage financing through two sources:
(i) US lenders
(ii) Overseas lenders at the foreigner's home country

US Lenders
The major US banks no longer provide financing to foreigners.  However, certain niche banks still provide foreigner financing.  The downpayment requirement is usually much higher and interest rates are higher as well relative to those provided to borrowers who are US residents.

Overseas Lenders
This is an option as the lender is from the foreign client's home country or region.  Hence the foreign buyer will be more familiar with the documentation terms, mortgage structure etc.  Essentially it's a bank at the foreigner's home country providing an international mortgage.  Again, very few financial institutions provide this but there are niche players.

Manhattan New York Condo Buying Process For Foreigner / Overseas Buyers

As guidance to our foreign / international buyer clients, below is the process for buying a condo in Manhattan, New York.  The process is similar for those buying the condo as an investment property or as a residence.  Main difference is that for investment property buyers, downpayment required by the lender is usually much higher. 

Estimated Time to closing after identifying property:
With Financing:  10 to 12 weeks
All Cash:  2 to 3 weeks

1.  Obtain pre-approval from lender (1-5 days)
Lender can be US bank or overseas bank at foreigner's home country with international mortgage programs. 

2.  Identify Property (2 days - several months)
Property viewing can be a pleasurable or tiring experience.  Make sure you work with a broker who will filter the properties to maximize productivity of your time. 

Manhattan Property Prices Drop, 4Q 2009

My article published in Thestreet.com 
Link:  Manhattan Property Prices Drop


NEW YORK (TheStreet) -- The city's major brokerages reported prices in the fourth quarter of 2009 in the Manhattan property market decreased from a year ago while sales increased. I expect this trend to continue into early 2010.


Prudential Douglas Elliman and Miller Samuel reported that the median sales price of an apartment in the fourth quarter of 2009 was $810,000, down 10 percent compared to a year ago. There were 2,473 transactions, up 8.4 percent compared to last year, and 11 percent compared to last quarter. The activity is more than double the 1,195 transactions in the first quarter of 2009. Average price-per-square-foot was $1,176, flat compared to a year ago. Brown Harris Stevens and Halstead, both owned by Terra Holdings, reported median price of $800,000, 9 percent lower than a year ago. There were 2,519 sales, 9 percent higher than a year ago.

Foreigner / Overseas Buyers Interested in New York Investment Property

Foreigners and overseas buyers interested in Manhattan, New York investment property should read our Foreign Buyer Guide below.

Foreign Buyer Guide

Foreigners return to Manhattan

New Neighbors from Far Away - New York Magazine

Fall 2009 showed the return of foreign buyers to Manhattan real estate.  The British, Italians, Brazilians, French, Australians, Russians, and Canadians are coming by the "planeload" after a year of very little buying.  Driven by better prices and favorable exchange rates.

Visit Our Foreign Buyer's Guide

Foreign / Overseas buyer tax rate of Manhattan New York investment property

Perhaps the first question foreign or international investors ask about buying Manhattan New York property is the tax rate.  Understandably, countries like Hong Kong and Singapore have low tax rates and people hear horror stories about the high taxes in New York.  This is why having a great team is crucial in your efforts for wealth creation.  Anyway, here is the summary:

Capital Gains Tax:
Long term capital gains tax (for property held more than 1 year) is 15% for US residents.  For foreigners, it can be as high as 30 percent.  However, there are ways for a foreigner to qualify for US resident status and hence get the benefit of the 15 percent long term tax rate.  This is where we would recommend our foreign clients to the right attorney and CPA to properly handle tax strategy.

Cantonese Chinese speaking agent, Manhattan New York condo

I am a Cantonese Chinese speaking property agent in Manhattan, New York serving foreign and international investment property buyers.  Our clients include investors from Hong Kong, Singapore, China and Malaysia.

Our clients usually purchase investment condos in new developments in Manhattan because Manhattan has shown to be an asset that sustains its value, despite the current recession.  For example, Manhattan prices decreased by about 20 percent during the current recession.  This decline is much lower than the declines at similar major cities such as Los Angeles and San Francisco where prices declined by 40 to 50 percent.  Manhattan prices are also more stable relative to stocks where in 2008, prices declined by 40 percent.

Foreign buyer financing, Manhattan New York investment property

In Manhattan, New York, many foreign and international investment property buyers purchase in cash.  Buying property in cash in Manhattan will save the buyer the mortgage tax, which is about 2% of the loan amount.  In addition, the cash buyer saves various bank related fees. 

Financing allows the ability to leverage funds, thereby being able to buy more property.  For example, if you buy one condo at $1 million in cash, you only get the appreciation benefit of 1 condo.  Buy if you finance at 50%, you actually get to buy 2 condos and hence benefit from appreciation (or price decrease) of two investment properties. 

The two ways of arranging financing are:
(i) Financing from US lender:  This option is easily arranged through a mortgage broker or a bank that STILL lends to foreigners.  We have connections to both.  The requirement is usually a 40 percent downpayment (60% LTV).  Also, the buyer needs to show liquid assets that is usually based on a multiple of the monthly payments.  Since financing is in the US, the buyer would have to pay ~ 2% mortgage tax.

(ii) Financing from home country:  This refers to getting financing loan from the home country.  Hence from the US's perspective, it's a cash transaction.  The main difference is saving the mortgage tax and various bank fees.  But of course, there may be other fees associated with the financing bank. 

Ultimately, the foreign or international investor needs to do a cost benefit analysis.  It's a matter of comparing loan terms, amortization period, interest rate, costs etc.  Many buyers don't really understand things like amortization period and just take whatever the bank offers.  I find many offer adjustable rate products.... Big mistake.

Visit Our Foreign Buyer's Guide


Wei Min Tan is a real estate broker and investor focused on investment property in Manhattan.  Formerly, he was a Vice President at Citigroup and managed a $500 million portfolio.  He can be reached at tan@castle-avenue.com


Disclaimer:  The above is not meant to be financial advice.  Always consult your CPA, banker or attorney on financing matters as individual situations may differ.

Manhattan New York property buyers from Malaysia, Hong Kong, Singapore

Many have asked about whether we focus on foreign / international clients from Asia purchasing property in Manhattan to take advantage of the weakened dollar and economic downturn.  Answer is yes, 50% of our clients are high net worth individuals from Asia, specifically Malaysia, Singapore and Hong Kong.

Reasons include growing up in Malaysia, familiarity with the cultures and expectations, ability to speak Chinese Cantonese, Hokkien and Malay.  We are familiar with the property buying process there and can put the process of buying Manhattan, New York real estate in context.  Further, we can discuss the ROI, yield and appreciation potential of Manhattan property relative to those at the home countries of our clients.

We are expanding our client development efforts in Malaysia, Hong Kong and Singapore.  Also, we continue to see increased interest, especially from savvy investors looking to take advantage of the economic downturn.

Visit Our Foreign Buyer's Guide
New York historical price appreciation
Buying New York Property
New York Property articles
New York investment property overview
FAQ


Contact Wei Min at tan@castle-avenue.com to discuss how we can help you grow wealth through Manhattan real estate.

FAQ Foreign / International Buyers of Manhattan New York Property: Condos, Mortgage Financing, Expenses, Broker Fee

Can foreigners buy property in Manhattan, New York?Yes. Many foreigners buy property in Manhattan because of the brand value and appreciation potential. They often purchase as a pied-a-terre (vacation home), or investment property. A large percentage of our clients are international, from countries like Malaysia, Singapore, Hong Kong and China.

What type pf properties are popular amongst foreign or international buyers?
There are two categories of apartments, condos and co-ops. We recommend condos because of the higher appreciation and investment value. Co-op buildings often restrict ability to rent and perform renovations and do not make good investment property. The process of buying a co-op is subject to board approvals which dramatically prolong the buying process. The value of a condo, on a per-square-foot basis, is about 20 to 30 percent higher than a co-op. However, the appreciation potential and demand are higher as well.

Besides apartments, our international clientele also purchase townhouses, mixed use buildings and commercial buildings.


What are the expenses associated with owning a property in Manhattan?
For apartments, the main monthly expenses are taxes, common charges, insurance and depending on whether financing was used, mortgage principal and interest.

New development buildings often have a tax abatement which dramatically reduces the monthly tax amount. Without abatement, annual taxes are often between 0.5 to 1 percent of the property’s value. Common charges average $1 per square foot per month and it goes up or down depending on number of units and amenities. Insurance is roughly $500 to $1000 per year and on a monthly basis, a relatively smaller expense item.

Is financing available for foreign or international buyers?Yes, mortgage loan financing is available and can be obtained either through a mortgage broker or directly from the bank. Since the credit crisis, lenders have tightened credit criteria and will require about 40 percent as downpayment from a foreign buyer. Most mortgage products for foreigners are ARMs (adjustable rate mortgage) but some lenders offer 30 year fixed mortgage to foreigners. We will refer our foreign clients to reputable mortgage brokers or banks to help arrange financing.

What are closing costs?Closing costs are roughly 3 to 5 percent of the loan amount. This includes mortgage tax, transfer taxes if purchasing a new development, attorney fees, recording taxes and other administrative expenses.


Who pays the broker fee?
In New York, broker fees are paid by the seller. When the seller’s broker agrees to list the property for sale, a certain percentage is agreed upon as commission. If the buyer is represented by a broker, this commission will be split with the buyer’s broker. If the buyer does not have a broker, then the seller’s broker keeps the entire commission. Hence, it is in the best interest of the buyer to have broker representation to help identify the right property and negotiate the best price.

Visit Our Foreign Buyer's Guide
New York historical price appreciation
Buying New York property
New York Property articles
New York property search
FAQ
Contact Wei Min at tan@castle-avenue.com on how we can help you grow wealth through Manhattan property.