I live outside the United States can I buy property in New York City?
Yes! The New York Real Estate market is friendly toward international buyers. The purchasing of New York condominiums and townhouses are popular for international buyers for many reasons, including the flexibility these types of properties provide, and their relatively easier requirements with respect to financial disclosure and qualifications for foreign investors.
What are the first steps I should follow to purchase a property in New York City?
As a foreign buyer, your first step should be to hire a New York real estate attorney, who our firm can help you find. Your attorney will advise to you the best way to make this purchase, whether it be as an individual or setting up a corporation in the US, called an LLC (explained below). You will also want to understand any tax implications, and establish bank accounts to transfer funds from your country to the US. To see the full steps involved in buying refer to the Buyer’s Guide.
Besides the purchase price, what other expenses are involved in purchasing a property in New York?
Buyers have to pay closing costs during the real estate sale. This expense can be between one percent and eight percent of the purchase price. Legal, registration, and federal/state/city fees are also required in addition to the down payment. Refer to Closing Costs for more details.
Once you close on a property in New York, you will have the following expenses:
• Common Charges/Monthly Maintenance Fees
These are monthly expenses that you pay directly to the building’s managing agent. Monthly charges vary from building to building and from apartment to apartment, depending on the size of the apartment and the amenities in the building. These fees are what it costs to run the building on a monthly basis and are used to pay for doormen, porters, cleaning, elevator maintenance, health club up-keep, heat, electricity and other expenses.
• Real Estate Taxes
For condominiums, taxes are paid quarterly to the city of New York. You also have the option to pay these in full when they are billed. The tax fiscal period runs from July – June.
I live outside the United States, can I get a mortgage for a home in New York?
Yes, foreign buyers can obtain a mortgage to purchase New York City real estate. Most US banks have created programs to accommodate international buyers. However, in the current mortgage market, most banks are only allowing financing of 50 percent, which means you would have to make a down payment of 50 percent.
International buyers will be asked to provide specific documents. These documents may vary depending on what bank is used. KG Properties of NY can put you in touch with mortgage specialists who can get the best interest rate for non-residents.
Verification Documents For International Buyers can be as follows:
• Proper Visa or Foreign Passport
• References from credit sources
• Verification of Rent/Mortgage Payments
• Showing adequate liquid assets to close
• Proof of employment
Is it better to buy as an individual or as a domestic US company?
Although there are benefits to buying through a domestic company, such as a Limited Liability Company (LLC), certain treaties between foreign countries and the US can minimize the advantages. Foreign buyers should enlist the help of a tax adviser and attorney specializing in international law to determine the best way to make this purchase. KG Properties of NY can put a buyer in touch with a tax adviser who can assess individual situations.
Things You Need To Know About an LLC
• It takes approximately one week to form an LLC.
• The LLC must be created in the same state as the location of the property.
• An LLC can have unlimited membership including non-residents and US residents.
• The LLC is required to file tax returns — local, state, and federal.
As a foreign buyer, do I have to pay any broker fees?
When international buyers choose to work with KG Properties of New York, there is no broker fee. All broker fees in New York City are paid by the seller. When an apartment sells, half the commission is paid to the seller’s real estate agent and half the commission is paid to the buyer’s real estate agent.
Do I need to work with a broker to purchase a property in New York City?
Almost all sellers have a broker in New York City, and the seller’s broker has a fiduciary responsibility and best interest of the seller. Therefore, it is always in your best interest to have your own broker working on your behalf. A buyer’s broker will negotiate for you and work to get you the best property at the best price. Also, since the seller pays all broker fees, there is no need to go without proper protection. Buyers should not risk making expensive mistakes by doing it on their own. Foreign buyers need the services of a qualified broker.
Top 5 Reason Buyers Should Hire Brokers
• Using a broker makes buying a less time-consuming process – by making appointments to view properties as well as open houses.
• Brokers negotiate on your behalf to get the best price for you, by conducting comparative market analysis
• KG Properties of NY Brokers’ have access to every New York City property on the market, ensuring you have the ability to assess all desirable and available properties.
• Brokers help with presentation of documents and applications with respect to banks and building approvals.
• Brokers coordinate the team of professionals needed to complete a sale and simplify the process
I am buying for investment – can your firm assist with renting this property?
KG Properties of New York can assist in renting your apartment. We will handle the entire rental process beginning with marketing the property. The current rental market in New York City is stronger than it has been in years, with very low vacancy rates. Once we find a tenant, we will fully screen that tenant, prepare the leases along with all other documentation the building requires. Once approval is given, we will coordinate keys for your new tenant and schedule their move-in. In addition for a nominal fee, we can manage the apartment on your behalf.
What type of management services do you offer the investors you work with?
KG Properties of New York currently manages more than 100 individual condominium units. Whether you own a single or multiple apartments in a condominium building our services can assist you.
All data and information set forth on this website regarding real property, for sale, purchase, rental and/or financing, are from sources regarded as reliable. No warranties are made as to the accuracy of any descriptions and/or other details and such information is subject to errors, omissions, changes of price, tenancies, commissions, prior sales, leases or financing, or withdrawal without notice. Square footages are approximate and may be verified by consulting a professional architect or engineer. All rights as to photographs and graphics are reserved to KG Properties of New York, Inc. ("KGP"). Customers should seek advice and proper legal counsel with respect to all closing costs, timing considerations, financing options, default provisions, zoning implications, renovation considerations and appropriate transfer taxes. KGP represents and has a fiduciary duty to those sellers with respect to KGP's exclusives. KGP may act as a dual agent if another agent of KGP represents the buyer or tenant. KGP represents the buyer or tenant when showing the exclusive listings of other real estate brokerage firms.
We are an equal housing opportunity provider. Consistent with applicable law, we do not discriminate on the basis of race, creed, color, national origin, sexual orientation, lawful source of income, military status, sex, gender identity, age, disability, familial status (having children under age 18), or religion. Equal Housing Opportunity.