Top 5 mistakes when investing in New York property

Whenever I meet a new buyer client, especially a foreigner wanting to buy an apartment in Manhattan for rental income, the client often has certain pre-conceived ideas.  This is understandable because it is impossible to understand a market from researching on Google from a few thousand miles away.  The pre-conceived ideas are as follows.  Not necessarily good or bad, but without proper advise, they could be costly mistakes.

Assuming popular tourist areas are best for investment

Foreign buyers usually assume Fifth Avenue, Central Park, Times Square, Wall Street are the “good” areas for investment.  This because these are tourist destinations the media associates with New York.  I totally understand and if I were planning on investing in a different city, say London, the only areas I would know are the tourist destinations.  Naturally, I would also associate investment stability with these locations.

Buying opportunities as sales drop 20 percent

 By Wei Min Tan

It’s now official. Consistent with my previous updates about now Manhattan being a buyer’s market, recently published reports show Q3 2016 sales volume down 20 percent.  

The market is especially favorable to cash buyers and this is evidenced by the numerous deals, whether pricing or concessions, we managed to negotiate for buyer clients recently.

How investing in New York’s next hottest area provided handsome returns for our clients

By Wei Min Tan

The 16-acre World Trade Center site has been the hottest upcoming development and the pinnacle of Downtown’s revitalization in New York for the past decade. 

Best type of investment property in New York

By Wei Min Tan

Our clients, who are successful business owners or corporate executives from around the world, invest in Manhattan, New York property for diversification and long term stable asset growth. To this end, Manhattan, New York property, given its stable appreciation trend over time, meets the objective very well.

As we often explain to buyer clients, Manhattan property will not appreciate 50 percent a year like in certain emerging countries. This is because Manhattan, New York is not a speculative market. About 70 percent of buyers in Manhattan are locals, buying property to live in. This makes market prices stable. A market becomes volatile when majority of buyers are investors and even more volatile if these investors are from one or two countries.

Q2, 2016 Manhattan Market Performance

By Wei Min Tan


1) Average price per sqft of a Manhattan Condo was $2,073, up 30 percent compared to a year ago.  The average Condo apartment was $2.758 million in Q2.  This is skewed upwards as driven by new development closings.  

Brexit's impact on New York property

Two weeks since Brexit and global markets continue to adjust to this new uncertainty.  The pound sterling declined to a 30 year low.  The British and world markets continue their reactions.

Here are potential impacts to New York property as result of Brexit.

1) New York edges past London as top property destination for foreign investors
London and New York property have always been competitors for foreign investment.  Both are regarded as the most prime and secure markets in the world, a safe place for asset diversification.  

Role of a Buyer's Broker

A buyer's broker identifies good deals and advises on the Upsides and Downsides of each property. Then, negotiates price and brings in the team to close the deal. Glad to contribute to this NY1 segment.

5 Things To Know About New York's LLC Disclosure Rule

By Wei Min Tan

1.  What is the new rule?
New York is piloting a new disclosure rule that requires LLCs to disclose the names of its members.  This new rule, on a test run, will take effect from March till August 2016.  The rule is aimed at uncovering money laundering activity.

2.  What types of property are affected?
The rule will only impact transactions involving:
(i) all cash
(ii) property priced at $3 million or higher
(iii) LLC (limited liability company) ownership

Interviewed by DNAinfo: 5 Things To Know About How Foreign Buyers Affect Local Real Estate

By Amy Zimmer | January 26, 2016 7:12pm 

@the_zim

MANHATTAN — As world economies and political situations shift, so too do their influence on New York City's real estate market.

Much has been made of the effect of foreign investors on driving up New York real estate prices, with some local real estate companies specifically soliciting foreign buyers for upcoming projects before soliciting New York residents.

3 Strategies When Investing In New York Condos

The core of the Manhattan, New York residential condominium market for investment purposes lies in the $1 million to $4 million price point.  This segment represents the studio to 3 bedroom sizes which are most in demand.  Anything larger than a 3 bedroom in Manhattan is a mansion by our standards.  Here are three strategies we use when recommending investment buys to our clients.

http://castle-avenue.com/New-York-property-investing-strategies.html

Manhattan property 2016 outlook on Sino Vision's Living In NY

Interviewed about the 2016 Manhattan property outlook by Sino Vision's Living in NY TV show.  


Wei Min Tan is a property broker focusing on Manhattan, New York luxury condominiums and foreign buyers.   He is often interviewed by the media including CNN, The New York Times and The Wall Street Journal on the subject of foreign buyers of Manhattan property.  Wei Min can be reached at +1.212.380.6134, tan@castle-avenue.com

Manhattan condominiums outperformed in 2015

By Wei Min Tan

​Jan 7, 2016

Global investors who have already invested in a Manhattan, New York condominium have reason to be cheerful.  In 2015, Manhattan condo apartments far outperformed major global indices.