The transaction costs for a foreigner buying property in New York is the same as for a U.S. citizen. There are no incremental taxes or stamp duties levied on foreign buyers, unlike in many countries that are trying to curb inflow of foreign investors. A foreigner may decide to own under a more complex entity structure and this would incur additional expenses. However, a local may decide on similar complex entities as well.
For the buyer, the all-in works out to around 6 percent of loan amount if there is mortgage financing. If a cash purchase, it works out to around 2 percent of price. For the seller, transaction costs amount to around 8 percent of price.
About:
Wei Min Tan is a Manhattan, New York property broker focusing on global investors of Manhattan condominiums. Wei Min has been interviewed by CNBC, CNN, Wall Street Journal and New York Times on the Manhattan property market. Wei Min can be reached at tan@castle-avenue.com
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