Buyers fighting to cancel contracts (The Real Deal)
Where buyers are backing out (The Real Deal)
Friday, December 11, 2009
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.
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.
Thursday, December 10, 2009
Top New York High Schools rated by USNews
New York High Schools that made US News and World Report's Top 100 America's Best High Schools, December 10, 2009
Newcomers High School Queens County, Long Island City, NY
Gold:#6 of 100
The High School of American Studies at Lehman College Bronx County, Bronx, NY
Gold:#19 of 100
Stuyvesant High School New York County, New York, NY
Gold:#31 of 100
Townsend Harris High School Queens County, Flushing, NY
Gold:#33 of 100
Staten Island Technical High School Richmond County, Staten Island, NY
Gold:#34 of 100
Baccalaureate School for Global Education Queens County, Long Island City, NY
Gold:#35 of 100
Yonkers High School Westchester County, Yonkers, NY
Gold:#41 of 100
South Side High School Nassau County, Rockville Centre, NY
Gold:#46 of 100
Jericho High School Nassau County, Jericho, NY
Gold:#48 of 100
Horace Greeley High School Westchester County, Chappaqua, NY
Gold:#51 of 100
Newcomers High School Queens County, Long Island City, NY
Gold:#6 of 100
The High School of American Studies at Lehman College Bronx County, Bronx, NY
Gold:#19 of 100
Stuyvesant High School New York County, New York, NY
Gold:#31 of 100
Townsend Harris High School Queens County, Flushing, NY
Gold:#33 of 100
Staten Island Technical High School Richmond County, Staten Island, NY
Gold:#34 of 100
Baccalaureate School for Global Education Queens County, Long Island City, NY
Gold:#35 of 100
Yonkers High School Westchester County, Yonkers, NY
Gold:#41 of 100
South Side High School Nassau County, Rockville Centre, NY
Gold:#46 of 100
Jericho High School Nassau County, Jericho, NY
Gold:#48 of 100
Horace Greeley High School Westchester County, Chappaqua, NY
Gold:#51 of 100
Capital Gains Tax on Property in Manhattan New York
Primary Residence:The IRS allows a seller to sell his primary residence in which he has lived 2 out of the past 5 years and take capital gains tax free of up to $250,000 (for single) and $500,000 (for married filing jointly).
The 2 years out of 5 years rule does not have to be continuous as long as it was used as primary residence during that time. One way an investor can capitalize on this is to buy property, rent it out and move back in for the last 2 out of five years prior to sale.
Investment Property:
Investment property held for more than 1 year will qualify for long term capital gains tax treatment. This means a maximum tax rate of 15% at the federal level. If held less than 1 year, the maximum federal tax rate is about 36%. However, I strongly discourage buying property with the intention of selling in less than 1 year. Buyers should intend to hold at least 5 years.
Many investors use the “1031 exchange” to defer payment of taxes. This requires exchanging the old property for a like-kind new property within a set period of time. Effectively, this strategy uses funds that otherwise would be used to pay taxes to leverage and buy more property, magnifying the return potential.
We will recommend our preferred CPA and attorney to clients so that they receive the best advice.
New York historical price appreciation
New York property articles
New York investment property overview
FAQ
New York investment property search
Contact Wei Min at tan@castle-avenue.com on how we can help you grow wealth through Manhattan property.
With the regulatory and legal environment, I need to provide this disclaimer:
The above serves as a general overview, not by a certified tax or legal professional. Always consult a CPA or attorney for tax matters as individual situations differ.
The 2 years out of 5 years rule does not have to be continuous as long as it was used as primary residence during that time. One way an investor can capitalize on this is to buy property, rent it out and move back in for the last 2 out of five years prior to sale.
Investment Property:
Investment property held for more than 1 year will qualify for long term capital gains tax treatment. This means a maximum tax rate of 15% at the federal level. If held less than 1 year, the maximum federal tax rate is about 36%. However, I strongly discourage buying property with the intention of selling in less than 1 year. Buyers should intend to hold at least 5 years.
Many investors use the “1031 exchange” to defer payment of taxes. This requires exchanging the old property for a like-kind new property within a set period of time. Effectively, this strategy uses funds that otherwise would be used to pay taxes to leverage and buy more property, magnifying the return potential.
We will recommend our preferred CPA and attorney to clients so that they receive the best advice.
New York historical price appreciation
New York property articles
New York investment property overview
FAQ
New York investment property search
Contact Wei Min at tan@castle-avenue.com on how we can help you grow wealth through Manhattan property.
With the regulatory and legal environment, I need to provide this disclaimer:
The above serves as a general overview, not by a certified tax or legal professional. Always consult a CPA or attorney for tax matters as individual situations differ.
Wednesday, December 9, 2009
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.
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.
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