WHY INVEST IN
New York ?

KEYS TO INVEST IN REAL ESTATE PROPERTIES IN NEW YORK

If there is a stimulating city in terms of real estate development and projection, that is New York.
The city of New York and its surrounding areas provide the opportunity to make real estate investments to foreigners.

Frequently asked questions asked by the investor are:

Where to buy?

New York offers opportunities for very conservative investors in traditional areas such as Midtown or nearby Central Park, and for those who seek not only appreciation over time but also rent. There are areas in the boroughs of Queens and Brooklyn that have both characteristics because this city continues to grow and expand into the suburbs. In some buildings in these neighborhoods there are tax benefits and reductions (taxabastements) because they were part of a real estate development program promoted by the local government. This clearly allows for better returns on investments.

Can foreign investors buy any property?

It must be borne in mind, in principle, that not all real estate is suitable for foreign investors. The buildings can be Condos (condominiums) or Coops (cooperatives). In general, the Condos allow the purchase of units by foreigners, unlike the Coops, the majority of their statutes require that the buyer actually lives in the property and restricts the possibility of renting it immediately.

Who pays the buyer's broker fees?

The good news is that the buyer's broker fees are paid by the seller because the regulation establishes it.

It is convenient that you buy the person or a company?

It is very important to know the tax consequences of buying or selling a property in the United States. For example, the purchase of a property by a foreign investor in a personal capacity or through a company incorporated in the United States, is reaching for the inheritance tax when the owner or beneficiary owner dies. This tax, which reaches 40% of the market value of the property in question, can be avoided if the investor buys through a company (LimitedLiability Company or Corporation), whose shares or shares are from an offshore company. This double corporate structure is perfectly valid, and the most recommended for foreign investors.

WHY BUY AN APARTMENT IN NEW YORK?

INVESTMENT PROFITABILITY

Ownership of an apartment can yield two types of profitability. First, if you decide to rent the apartment, it will produce income. A typical net income (deducting common expenses and taxes) will be about 3% to 3.6% net return.
In addition to that you can expect some kind of valuation of the property over time. In the last decade, it showed a 2.5% increase in property value despite the financial crisis of 2009.

DEMOGRAPHY

In Manhattan alone, 1.7 million people live, an island of just 23km. Squares. What is so special about New York City is that a good part of these people are young professionals with high incomes with an average that exceeds $ 100,000. The city attracts people with high potential and talent from almost every industry.

CULTURE

New York proudly calls itself the city with the most diverse population in the world. People from practically all over the world live here. This results in a unique cultural diversity, which is reflected in a wide variety of activities and restaurants.

TOURISM

New York City breaks its record of tourists with 65.2 million visitors in 2018. That number of tourists is a record figure and in 2019 it is expected to beat it again with an incredible figure of 67 million visiting tourists. New York has broken its own record nine years ago year after year.

BUSINESS

Despite the incredible figures of tourism, that industry is the fifth largest in New York. Among the five main industries are also global services, financial services, media, advertising and fashion. New York is home to most of the first hundred companies on the Fortune list.

FASHION

The fashion industry in New York employs 180,000 people, who represent 6% of the city's workforce. With more than 75 major fashion fairs plus thousands of fashion houses

EDUCATION

With over one hundred universities represented in the New York area, it is also home to more than one million students. Some of the best universities are located right in Manhattan, such as Columbia and New York University. But many other high-quality public and private institutions such as The New School and Cornell.

WEATHER

New York City is a sunny place. Central Park sees the sun 234 beautiful days. With four seasons you can enjoy a white Christmas and you can ski only five hours by car from New York. The summers are hot and humid, so many leave the city and go to the Hamptons beach, a few hours away. Spring and autumn are the most pleasant times to visit, May-June and September-October.

PRACTICAL TIPS FOR THOSE WHO BUY AN APARTMENT IN NEW YORK

Why are you buying?

There are different reasons to buy real estate in New York. The main reason for the Business Families we reached directly with InvertirenNewYork.com is to have a home away from home for them and their family. You can also help a family member buy a good. Or maybe you want to make an investment. In all these cases the marketing agents or realtors will be there to help you with your purchase and explain what are the factors that you should consider.

Is it better to pay in cash or resort to some financing?

Buying in cash can mean an advantage when negotiating with the seller. However, taking advantage of the fact that your purchase generates tax benefits, qualified foreign buyers can obtain financing of up to 70% of the purchase price of the property (depending on capacity). The typical terms of a loan are the following: $ 100,000 deposited in the bank 30% or more in advance 12 month bookings (mortgage payment, maintenance and taxes), in addition to the $ 100,000 Mortgages of 5 to 30 years with fixed interest or variable. Realtors have a close relationship with several mortgage brokers that adapt to the needs of the foreign buyer.

What are the purchase costs?

The good news is that having an agent to buy a property is not an extra cost. That's right, you don't pay agent commission. In other words, the services are free, as the seller will pay. The acquisition expenses will be the following: IN CHARGE OF THE SELLER: agent commission, state taxes on the transfer of the property (0.4%), municipal taxes on the transfer of the property (1% on the first $ 500 thousand, 1,425 % over the rest). IN CHARGE OF THE PURCHASER: Lawyer, Valuation and inspection fees, Mansion Tax (1% of the properties with a value of more than 1 million), search for titles and insurance, mortgage start-up fee and points (1% -4%) , registration mortgage taxes (1.75% -2.175%)

WHY DO WE RECOMMEND THE SERVICES OF THE AGENTS TO BUY A PROPERTY?

You can search the internet and try to find properties for sale on different websites to get an idea. However, if you decide to do this on your own, keep in mind that the process of finding a suitable place can be very frustrating and time consuming. This is because most of the New York apartments are marketed by intermediary members of REBNY , the New York Real Estate Council, which ensures that new properties for sale are first disclosed within the community. WE RECOMMEND FULLY TO AGENTS TO BUY A PROPERTY LISTED IN InvertirenNewYork.com Since they are the most qualified and experienced and will not only give you access to ALL apartments in the market, they also understand very well what is necessary to ensure the unit you like. In a market as competitive as that of New York, it is absolutely necessary to act quickly and efficiently, so knowing the rules of the game is very helpful.