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.
Thursday, January 7, 2010
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.
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.
Tuesday, January 5, 2010
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.
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
Foreign Buyer Guide
Friday, January 1, 2010
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
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
Mortgage Rates To Rise As Fed Ends MBS Purchase
Mortgage Rates To Rise As Fed Ends MBS Purchase
Interest rates on home mortgages set to climb when the Federal Reserve ends its purchases of mortgage bonds, analysts said. The U.S. central bank indicated that it might end the program, through which it bought $1.25 trillion in mortgage bonds, as soon as March. Analysts said the purchases have kept the spread above benchmark interest rates for mortgage bonds much narrower than what private investors would accept. The Fed's withdrawal is expected to push mortgage rates up nearly 0.75 percentage points by the end of 2010.
Excerpted from CFA Institute's Financial Brief.
Interest rates on home mortgages set to climb when the Federal Reserve ends its purchases of mortgage bonds, analysts said. The U.S. central bank indicated that it might end the program, through which it bought $1.25 trillion in mortgage bonds, as soon as March. Analysts said the purchases have kept the spread above benchmark interest rates for mortgage bonds much narrower than what private investors would accept. The Fed's withdrawal is expected to push mortgage rates up nearly 0.75 percentage points by the end of 2010.
Excerpted from CFA Institute's Financial Brief.
Extended First Time Home Buyer Credit 2009 / 2010
Excerpted from realtor.org
* Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
* Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Who Qualifies for the Extended Credit?
* First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
* Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
* Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
* Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Who Qualifies for the Extended Credit?
* First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
* Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Subscribe to:
Posts (Atom)