Chinese homebuyers are flocking to these
U.S.
Chinese buyers are now the biggest international players in the U.S.
Showing posts with label Foreign. Show all posts
Showing posts with label Foreign. Show all posts
Thursday, July 24, 2014
Thursday, November 1, 2012
Overseas investors buying property in USA
Overseas investors have been active in buying property in the U.S. especially in the last 2 years. In Manhattan, my first interview by the media on the topic was with the New York Times in Aug'2011 in the article A Second Home For Affluent Chinese. There has been numerous foreign investor articles since including Wall Street Journal's Foreigners Snap Up U.S. Properties and most recently AM New York's What International Buyers Want.
Tuesday, December 13, 2011
West Village, an oasis of personality
West Village in Manhattan, New York is a charming village full of personality and character. Maybe that's why many celebrities call West Village home. It feels like a village, has neighborhood charm and parts of West Village may even make you think you're in an European town. The photo of the bakery below is example of the village feel of West Village.
Friday, October 21, 2011
CNN story on foreign buyers of US property (yours truly interviewed)
Foreign buyers scooping up U.S. homes
October 21, 2011: 5:23 AM ET
NEW YORK (CNNMoney) -- Hey, wealthy foreigners! Want to live in the U.S.? Buy a home here.
Foreign buyer - Buy a house, get a U.S. visa
Senators Charles Schumer (New York) and Mike Lee (Utah) are proposing a bill that gives foreign buyers a U.S. residence visa if they spend $500,000 cash in a property. The visa does not allow them to work in the US but allows them to live here in the US as long as they own the property.
Friday, June 10, 2011
Foreign Investor New York Property
1.0 Overview for the foreign investor
1.1 Why New York
1.2 Can foreigners buy property in Manhattan , New York
1.3 What type pf properties are popular amongst foreign / international buyers?
1.4 What are expenses associated with owning a property in Manhattan
1.5 Financing for foreign / international buyers
1.6 Cash buyers
1.7 Transaction costs
1.8 Taxes, taxes, taxes
1.9 How does the agent / broker fee work when buying or selling?
1.10. How does the agent fee work when renting?
1.11 Should I use more than one agent?
1.12 What are the best areas in Manhattan
1.13 Does buyer have to be in New York
Saturday, January 15, 2011
US No 1 for foreign investors
US (specifically New York and Washington) is the top ranked property market according to foreign investors. Followed by Britain, Germany, China and France.
Thursday, January 6, 2011
Mortgage foreign investor New York property
Mortgage loan options for foreign buyers of Manhattan New York property.
Visit us at Castle Avenue Partners - Manhattan investment property
Tuesday, November 30, 2010
New York Property Agent
Weimin Tan, New York property agent, brings client See Chan to view 2BR condos. Featured on Manhattan's #1 real estate show, Open House NYC. Weimin is originally from Asia and speaks English, Cantonese Chinese, Malay and conversational Mandarin Chinese. He is a specialist with high net worth foreign / international investors interested in Manhattan property.
Saturday, January 16, 2010
New York Investment Property
New York investment property our investor clients buy are divided into condos (residential) and buildings (commercial or residential).
Residential condos are popular especially amongst international / overseas buyers because of the simplicity of ownership. Condo ownership requires minimal maintenance as the monthly common charges paid basically covers the required maintenance activities. A tenant or renter who has issues while staying at a condo can easily call the building staff to fix the issue at hand, eg leaky toilet or ineffective heater. Comparatively, if an investor owns a building, the investor needs to address issues like the roof, boiler, heater etc that may need repair.
Obviously there are advantages and disadvantages of owning a condo unit vs a building. Here is a rough breakdown:
Condo:
Upside - ease of ownership, simple to understand
Downside - lower rate of return
Building:
Upside - higher rate of return
Downside - more management intensive, higher cost of entry
Buying New York Property - Our Services
New York Property articles and media appearances
New York property FAQ
View New York investment properties at Castle Avenue Partners. We specialize in international and overseas clients interested in New York investment property.
cityfeet Loopnet
Foreign, international buyer, New York investment property
New York investment property
Residential condos are popular especially amongst international / overseas buyers because of the simplicity of ownership. Condo ownership requires minimal maintenance as the monthly common charges paid basically covers the required maintenance activities. A tenant or renter who has issues while staying at a condo can easily call the building staff to fix the issue at hand, eg leaky toilet or ineffective heater. Comparatively, if an investor owns a building, the investor needs to address issues like the roof, boiler, heater etc that may need repair.
Obviously there are advantages and disadvantages of owning a condo unit vs a building. Here is a rough breakdown:
Condo:
Upside - ease of ownership, simple to understand
Downside - lower rate of return
Building:
Upside - higher rate of return
Downside - more management intensive, higher cost of entry
Buying New York Property - Our Services
New York Property articles and media appearances
New York property FAQ
View New York investment properties at Castle Avenue Partners. We specialize in international and overseas clients interested in New York investment property.
cityfeet Loopnet
Foreign, international buyer, New York investment property
New York investment property
Thursday, January 14, 2010
Buying New York Property
New York property, specifically Manhattan, is popular amongst high net worth individuals internationally because of it's brand value and ability to sustain value even during economic downturns.
Manhattan has performed better than the broader U.S. real estate market and comparable major cities such as San Francisco and Los Angeles. Relative to peak, Manhattan property decreased by about 20 percent during this economic downturn. This is compared to the 40%+ decreases in cities like San Francisco and Los Angeles.
Below are common questions asked by our overseas / international clients about buying New York property.
Can foreigners / overseas buyers purchase property in 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 for your New York property.
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?
With New York Property, 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 Overseas Buyer's Guide
New York Property FAQ
New York Price Appreciation History
New York Investment Property Overview
Buying New York Property - Our Services
Wei Min Tan is a real estate broker and investor focused on investment property in Manhattan, New York. He can be reached at tan@castle-avenue.com
Manhattan has performed better than the broader U.S. real estate market and comparable major cities such as San Francisco and Los Angeles. Relative to peak, Manhattan property decreased by about 20 percent during this economic downturn. This is compared to the 40%+ decreases in cities like San Francisco and Los Angeles.
Below are common questions asked by our overseas / international clients about buying New York property.
Can foreigners / overseas buyers purchase property in 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 for your New York property.
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?
With New York Property, 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 Overseas Buyer's Guide
New York Property FAQ
New York Price Appreciation History
New York Investment Property Overview
Buying New York Property - Our Services
Wei Min Tan is a real estate broker and investor focused on investment property in Manhattan, New York. He can be reached at tan@castle-avenue.com
Buying New York property from overseas, condo and renter management
After our overseas investor client buys an investment condo in New York, the next step is to market to potential tenant renters. Here are the steps we perform:
1. Market to potential renters using various marketing channels
2. Screen potential renters / tenants (credit score, references, salary, work history)
3. Arrange for tenant move in
4. Set up automatic transactions for tenant to automatically deposit monthly rent checks into owner's account.
The system above removes the need for owner to pay monthly property management fees. Property management fees are anywhere from 3% to 10% of gross rent. Since Manhattan tenants are usually high income and good credit quality individuals, there is usually very little management necessary.
As the need arises where the tenant requires attention, we will be the point of contact to help resolve the issue at hand.
Visit our Overseas Buyer's Guide
Historical price appreciation
New York property articles
New York property search
New York investment property overview
FAQ
Wei Min Tan is a real estate broker and investor focused on investment property in Manhattan, New York. He can be reached at tan@castle-avenue.com
1. Market to potential renters using various marketing channels
2. Screen potential renters / tenants (credit score, references, salary, work history)
3. Arrange for tenant move in
4. Set up automatic transactions for tenant to automatically deposit monthly rent checks into owner's account.
The system above removes the need for owner to pay monthly property management fees. Property management fees are anywhere from 3% to 10% of gross rent. Since Manhattan tenants are usually high income and good credit quality individuals, there is usually very little management necessary.
As the need arises where the tenant requires attention, we will be the point of contact to help resolve the issue at hand.
Visit our Overseas Buyer's Guide
Historical price appreciation
New York property articles
New York property search
New York investment property overview
FAQ
Wei Min Tan is a real estate broker and investor focused on investment property in Manhattan, New York. He can be reached at tan@castle-avenue.com
Thursday, January 7, 2010
Foreign / Overseas parents of New York University, Columbia students. Buy Manhattan property?
For affluent parents of students attending NYU or Columbia, a common question is whether to buy a condo investment property in Manhattan for their child to live in. Of course, there is no right answer. Here are high level pointers:
* Staying at the dorm is more expensive than renting an apartment outside. The dorms, along with the meal plans are revenue streams for the universities. Columbia and NYU are major landlords and own many properties, land and buildings. They understand the benefit of owning.
* Renting is the lowest cashflow option. It's cheaper than staying at the dorm and does not require the large capital outlay associated with buying.
* Buying a condo or building is obviously the long term wealth building strategy. In this market (because prices have depressed enough). However, Manhattan property requires tying up at least 40 percent down to break even with rent. This is capital that may be more productive in another investment.
* Staying at the dorm is more expensive than renting an apartment outside. The dorms, along with the meal plans are revenue streams for the universities. Columbia and NYU are major landlords and own many properties, land and buildings. They understand the benefit of owning.
* Renting is the lowest cashflow option. It's cheaper than staying at the dorm and does not require the large capital outlay associated with buying.
* Buying a condo or building is obviously the long term wealth building strategy. In this market (because prices have depressed enough). However, Manhattan property requires tying up at least 40 percent down to break even with rent. This is capital that may be more productive in another investment.
Foreigner / International Buyer Mortgage Loan Financing for Manhattan New York Property
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.
(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.
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
Friday, December 25, 2009
Foreign / Overseas buyer tax rate of Manhattan New York investment property
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.
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.
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.
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