Things Foreign Buyers should know about apartments in Manhattan, United States of America
Many Foreign buyers, when it comes to buying an Apartment In Manhattan, might be clueless regarding a number of areas, from how New York real estate works, to their various choices. The following guide is for anyone in this situation, who is contemplating purchasing an apartment in Manhattan despite being a citizen and resident of another country.
- One significant thing that must be understood is that no matter what option for New York property ownership one selects, there will be additional expenses associated with it, other than the purchase. Fortunately, an owner can deduct many of these costs from his or her taxable income, such as real estate taxes, carrying charges, and the interest that a co-op shareholder pays from the mortgage.
- You will probably need to have a broker, as most sellers have brokers, and these brokers do not represent the buyer’s rights. Brokers offer immunity to the seller, and so the buyer ought to have one, as well.
- There are 3 types of residential property in New York:
- condos (condominiums),
- co-ops (cooperatives),
- and townhouses.
- It is possible for a foreigner who is not a US citizen, who does not live permanently in the US, and who doesn’t work there to buy an apartment in New York as long as that individual has enough money to purchase there but note, not every apartment that is shown as available for sale can be purchased by a foreign buyer.
- While basically every condo available for sale in Manhattan can be acquired by a foreigner, it becomes a little more complicated in the case of co-ops, so it is advisable to discuss your conditions and your situation with a trusted buyer’s agent and then decide what kind of property to focus on and what would work best for your advantage.
- New York Condo apartments are the most ideal option, especially for investor buyers who want to purchase an apartment in order to rent it out.
- It’s not that difficult for a foreign buyer to procure a United States mortgage as most of the banks in the US now have programs in place intended for foreign buyers, as long as this buyer fulfils the bank’s lending requirements.
- Co-op owners are charged maintenance fees every month, while condo owners are charged common fees as part of their monthly expenses. The better amenities a building has, the higher the fee is, so these charges can range from hundreds to thousands. There are also real estate taxes linked with property ownership that owners have to pay to the city, but owners with diplomatic immunity do not have to pay property taxes.
- All dimensions in New York are usually given in feet, and area is described in square feet, so if you come from a metric country, take note of this conversion.
- Kitchens in New York are always fully provided with cabinets, a refrigerator, a gas range/oven, and in some cases, with dishwasher and microwave oven. And Bathrooms are usually equipped with mirrored storage cabinets above the sink as well as a sink bathroom vanity cupboard.
- If there is a garage in the building, it is never covered by the apartment maintenance fee, so there will be a separate monthly charge if you want to park your vehicle there.
- Washer/Dryer is not always allowed inside apartments, so always check with the management, do not assume that you can install Washer/Dryer if you wish to. In newer condos, most apartments do have a washer/Dryer installed. Additionally, essentially all buildings have separate laundry rooms.
- Not all buildings allow pets and some might even have weight restrictions on dogs. So make sure to assess before buying.
- Having an attorney is also absolutely important. Attorneys are needed to obtain insurance, perform a search on the title, and research any violations on the building, in addition to negotiating the contract, and the initial agreement that goes hand-in-hand with paying the deposit.
- In certain buildings, health clubs and pools are usually included in the monthly maintenance fee but in some, there might be an extra charge.
- In most condo buildings, gas, heat and hot and cold water are included in the monthly maintenance but occupants will have to pay for other utilities, such as electricity, phone, or cable.
- New condo developments could appear a bit more expensive, however, they often have so-called tax abatements, which means that the new owner will pay much lower tax rates for the next decade if they buy in such a building.
- When purchasing an apartment in a brand new condo building directly from the sponsor, the buyer is usually asked to pay transfer taxes and the sponsor’s attorney fee, but these can be sometimes negotiable.
- A foreign buyer does not necessarily have to buy a condo apartment in New York under his own name. He can purchase it under the name of an LLC. When you buy under the name of an LLC, your real name is hidden from public records.
Before searching for a home in New York City, a buyer should decide on his or her desired neighbourhood, the type of housing he wants, and the purchase price he wants. So when considering all this, a buyer should also decide on his specific needs, such as the amount of space in the apartment, the building’s amenities, and the building’s location and proximity to local amenities. Also, the buyer should consider his income level.
Are you ready to purchase an Apartment In Manhattan?- Let’s go ahead together and contact your Damalion expert now to buy your apartment in New York.
