International Buyers
We will guide you through the entire process from identifying the property to forming tax strategies to finding a renter to eventually selling a property.
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International clients purchase property in Manhattan and New York City because of the prestige and high potential for capital appreciation. With the recent economic downturn and the weakening of the U.S. dollar, properties in Manhattan and New York have become an attractive investment vehicle for international buyers whom have witnessed an overvaluation of property prices in their respective home countries. Foreign buyers usually purchase condos as investment property or vacation home. They also purchase townhouses, commercial and retail properties.
The Home Ambassadors has extensive experience in helping international buyers acquire properties in the US. We will guide you through the entire process from identifying the property to forming tax strategies to finding a renter to eventually selling a property.
The process of purchasing a property in the U.S. may be different from that of your own country. Please visit the following links to learn more or call us at 888.869.9996 or schedule an appointment with us.
FAQ
Are foreigners allowed to purchase and own real estate in New York? What are the expenses?
Yes. Many foreign individuals and companies have acquired properties in New York in the past and continue to do so in significant numbers. Apartment units in new luxury condominiums and townhouses are the most popular choices among international buyers. Common charges, real estate taxes, as well as mortgage interest payment (if applicable) are the typical expenses.
What is 'Tax Abatement'?
Tax abatement refers to programs that encourage developers to continue building and growing in targeted neighborhoods. 421-A, 421-G, and J-51 are examples of tax abatement programs. Owners of units in buildings with tax abatement programs typically pay a low percentage of real estate taxes for a defined period of time and they can be as low as $8 dollars a month.
Which taxes are non-residents required to pay on the proceeds of a sale?
Tax liability is not the same for US residents and non-residents. Please contact us for a personalized tax consultation.
Do I need a broker when I sell my property in the future?
A seller's broker has the fiduciary duty to protect the seller and will not represent a buyer's rights. We recommend foreign buyers enlist the help of an experienced broker to work specifically on their behalf. A broker can request concessions or intercede for a reduction in price. Having an agent in your corner is essential in finding the right property for the right price.
Can international buyers purchase a co-op property?
International buyers can purchase a co-op property but it is challenging due to the strict rules and policies set by a Co-op Board. The Co-op Boards govern Co-op buildings and every purchaser must obtain their approval in order to purchase units in the Co-op. To gain approval from most Co-op Boards, one must have a stellar credit, and be able to present a US tax return on a multi-year basis. One of the most stringent rules of a Co-op is the varied restrictions on subleasing; these rules may not allow subleasing at all or allow it for two out of every five years. In addition, the owner needs approval from the Co-op Board before selling the unit(s).
What will be the closing costs?
Buyers and sellers have to pay closing costs during a real estate sale. Please click here to learn about the closing costs associated with buying and selling condos and townhouses.
Who pays for brokerage fees?
Seller pays the brokerage fee which is then divided between the respective seller’s and the buyer’s broker. If a buyer does not have a broker, then the seller’s broker typically collect all the fees.
Do you provide property management services?
Yes. We provide full investment and property management services, from finding tenants to paying your mortgage and real estate taxes to selling your property. We provide hands-on management services, ensuring you a laissez-faire and yet profitable experience. Please visit our services.
What about Condominiums?
Condominiums have minimum restrictions regarding usage ownership. Condo regulations allow part-time residence and unlimited subleasing. Although condos are generally priced higher than co-ops, they make up the difference in flexibility and high rental income. Condominiums are an attractive investment to most investors due to proven track record of high potential of capital appreciation.
I do not live in the US. Can I get a mortgage?
Yes. Foreign buyers can obtain a mortgage to purchase New York City real estate. Foreign buyers can finance between 50% and 60%. International buyers may be asked to provide additional verifiable documents.
How much return can I expect from owning real estate in New York City?
We believe that purchasing real estate in New York is a safe and effective wealth building tool for everyone. The weakening of the US dollar makes property investment in New York more attractive than ever to foreign buyers. Steady population growth and strong economic performance of certain sectors in the past few years coupled with international popularity have contributed to the real estate appreciation in New York City. The demand of owning a fabulous home in Manhattan has outpaced supply in recent years and continues to foster healthy long term appreciation of home values.