Castle Avenue Partners focuses on residential and commercial investment property in Manhattan, New York. Our value lies in analyzing and recommending the right New York property for our client, managing, and handling the eventual sale. Our recommendation will include appreciation and rental potential, neighborhood growth, yield relative to stocks and bonds and tax implications. The goal is to serve as an acquisition partner to local, overseas and international clients and collectively grow wealth through New York property.
View Manhattan, New York Properties
Focusing on buyers, the entire Manhattan, New York market is our inventory.
Castle Avenue Partners in the news
Our media appearances, articles and interviews on major networks such as NBC, CBS and TheStreet.com
New York property
Friday, January 15, 2010
New York Commercial Property Yield
Commercial property yield in New York (Manhattan) is driven by price point. The lower price point properties, less than $20 million, generally have an asking price at a 5 percent yield.
The higher price point commercial properties, more than $30 million, would have a higher yield , perhaps 8 percent or more. Reason is that at a higher price point, there are fewer players which decreases demand. Also, buyers at the higher price point are often institutions that put a lot more pressure on sellers from a pricing perspective.
The value of commercial property is driven by yield. Similar to a stock's PE ratio. The more the landlord can obtain in rent, the higher the value because a set multiple, in this case rental yield, would be applied.
New York property articles
Buying New York property - services
New York property FAQ
Visit our website http://www.castle-avenue.com/ to learn more about buying New York commercial or residential investment property. We focus on local, overseas and international investment property clients.
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
The higher price point commercial properties, more than $30 million, would have a higher yield , perhaps 8 percent or more. Reason is that at a higher price point, there are fewer players which decreases demand. Also, buyers at the higher price point are often institutions that put a lot more pressure on sellers from a pricing perspective.
The value of commercial property is driven by yield. Similar to a stock's PE ratio. The more the landlord can obtain in rent, the higher the value because a set multiple, in this case rental yield, would be applied.
New York property articles
Buying New York property - services
New York property FAQ
Visit our website http://www.castle-avenue.com/ to learn more about buying New York commercial or residential investment property. We focus on local, overseas and international investment property clients.
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
New York Property Yield
New York property (Manhattan condo) as an investment would have a gross rental yield of 4 to 5 percent. After paying for common charges and taxes, the net rental yield reduces to about 3 to 4 percent.
Manhattan, New York property is not a yield but rather an appreciation game. An investor buying New York property focuses on the long term appreciation potential. Demand for Manhattan property is global, coming from all over the world. Manhattan is a brand and the vacancy rate is less than 2 percent, relative to the US's 10 percent average. Inflation would mean rents and property values will increase.
A yield strategy in the US would mean investing in a midsize of small city. For example, Syracuse, New York is a college town with a yield of 10 to 15 percent. From personal experience, the appreciation from a city like Manhattan New York far outweights the rental yield cashflow from a midsize of small city.
Our website Castle Avenue Partners - Manhattan investment properties
Historical price appreciation
New York Property ROI
New York Property Yield
Manhattan, New York property is not a yield but rather an appreciation game. An investor buying New York property focuses on the long term appreciation potential. Demand for Manhattan property is global, coming from all over the world. Manhattan is a brand and the vacancy rate is less than 2 percent, relative to the US's 10 percent average. Inflation would mean rents and property values will increase.
A yield strategy in the US would mean investing in a midsize of small city. For example, Syracuse, New York is a college town with a yield of 10 to 15 percent. From personal experience, the appreciation from a city like Manhattan New York far outweights the rental yield cashflow from a midsize of small city.
Our website Castle Avenue Partners - Manhattan investment properties
Historical price appreciation
New York Property ROI
New York Property Yield
Thursday, January 14, 2010
Chinese Property Agent in New York City
I am a Cantonese Chinese speaking real estate agent in Manhattan, New York serving foreign and international investment property buyers. Our clients include investors from Hong Kong, Singapore, China and Malaysia.
I grew up in Klang, Malaysia, and came to the US for college and MBA education. Consequently, I worked as a banker at Citigroup for 9 years and attained numerous achievements. Four years ago, I left corporate world to focus on being a full time real estate investor and broker.
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.
Reasons for our clients' purchases include:
(i) taking advantage of the current downturn
(ii) purchasing residence for children attending college or university in Manhattan, such as at New York University or Columbia University.
We also represent clients purchasing commercial investment property in Manhattan, including mixed use buildings and commercial condos. Besides Cantonese Chinese, I also speak Malay, the national language of Malaysia.
Visit Our Overseas Buyer's Guide
New York historical price appreciation
New York investment property overview
Property yield
New York property articles
New York investment property search
Visit our website at http://www.castle-avenue.com/
Best,
Wei Min
tan@castle-avenue.com
212.682.8494
I grew up in Klang, Malaysia, and came to the US for college and MBA education. Consequently, I worked as a banker at Citigroup for 9 years and attained numerous achievements. Four years ago, I left corporate world to focus on being a full time real estate investor and broker.
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.
Reasons for our clients' purchases include:
(i) taking advantage of the current downturn
(ii) purchasing residence for children attending college or university in Manhattan, such as at New York University or Columbia University.
We also represent clients purchasing commercial investment property in Manhattan, including mixed use buildings and commercial condos. Besides Cantonese Chinese, I also speak Malay, the national language of Malaysia.
Visit Our Overseas Buyer's Guide
New York historical price appreciation
New York investment property overview
Property yield
New York property articles
New York investment property search
Visit our website at http://www.castle-avenue.com/
Best,
Wei Min
tan@castle-avenue.com
212.682.8494
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.
Subscribe to:
Posts (Atom)