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.
Friday, December 25, 2009
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.
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.
Saturday, December 19, 2009
Manhattan Office Market Oct 2009
October 2009
Manhattan average asking office rent $50
Midtown $56
Midtown South $42
Downtown $39
Office tenants getting deal a great deal which they can lock for the next 10 - 20 years. Asking rents down 20% but including free rents and improvements, net effective rents down a whopping 44%. However, landlords are filling buildings and not dropping rents as rapidly as before.
http://therealdeal.com/newyork/articles/michael-stoler-good-things-coming-to-those-who-wait-it-out
http://therealdeal.com/newyork/articles/how-much-further-will-the-office-market-fall-with-low-cost-space-and-major-deals-at-399-park-avenue-with-boston-properties
Manhattan average asking office rent $50
Midtown $56
Midtown South $42
Downtown $39
Office tenants getting deal a great deal which they can lock for the next 10 - 20 years. Asking rents down 20% but including free rents and improvements, net effective rents down a whopping 44%. However, landlords are filling buildings and not dropping rents as rapidly as before.
http://therealdeal.com/newyork/articles/michael-stoler-good-things-coming-to-those-who-wait-it-out
http://therealdeal.com/newyork/articles/how-much-further-will-the-office-market-fall-with-low-cost-space-and-major-deals-at-399-park-avenue-with-boston-properties
Manhattan #2 in nation for distressed commercial property
Manhattan #2 in distressed commercial real estate.
1. Las Vegas $17.7 billion in commercial properties that are in default, delinquent, foreclosed.
2. Manhattan $12.3 billion
3. Miami $7.6 billion
As reported by the Real Deal. Data by Real Capital Analytics.
1. Las Vegas $17.7 billion in commercial properties that are in default, delinquent, foreclosed.
2. Manhattan $12.3 billion
3. Miami $7.6 billion
As reported by the Real Deal. Data by Real Capital Analytics.
Tuesday, December 15, 2009
Excerpt from Jim Cramer's "Getting Back To Even"
Mobile Internet Tsunami Stocks
http://www.thestreet.com/story/10645425/1/cramers-mobile-internet-tsunami-stocks.html?kval=dontmiss
Diversified Dividend Portfolio
http://www.thestreet.com/story/10644323/1/cramers-diversified-dividend-portfolio.html?kval=dontmiss
http://www.thestreet.com/story/10645425/1/cramers-mobile-internet-tsunami-stocks.html?kval=dontmiss
Diversified Dividend Portfolio
http://www.thestreet.com/story/10644323/1/cramers-diversified-dividend-portfolio.html?kval=dontmiss
Sunday, December 13, 2009
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.
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.
Saturday, December 12, 2009
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