foreign investors

Foreign Investors Buying Real Estate in New York City

KG Properties of New York has a long history of advising International clients on their acquisition of real estate in New York City. We have an in-house team of multilingual professionals speaking Spanish, Italian, English, Portuguese, Japanese and Chinese. From our headquarters on Fifth Avenue in Manhattan, we can provide every level of support to private clients as well as corporations for their real estate investments. We will match investment opportunities in residential real estate in all market conditions – through our extensive database, our knowledge of market trends, property values and our network.

KG Properties can not only identify and analyze each investment property for you, but after you close on the property we will find you a qualified tenant, and also manage the property on your behalf handling the day to day administration, leasing, maintenance and reporting.

Whether you are looking for an investment property, pied-á-terre or relocating to New York, our specialized buyer services make the process stress-free and rewarding. We provide independent information, expert advice and comprehensive knowledge to help you make the best decision and secure the ideal property that best suits your expectations and needs.

New York City real estate is popular among international buyers due to its location, limited landmass, transparency and capital appreciation. If you are a foreign investor with immediate questions about buying New York real estate, please refer to our guide below; or if you prefer to speak with us directly please Contact Us or call 212-757-8235.

Frequently asked questions:

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.

What is the best way to find property in New York City?

The best way to find a property in New York City is through a specialized agent from KG Properties of NY. As a member of the Real Estate Board of New York (REBNY) and a New York City Multiple Listing Service, our agents have access to all properties in the New York City marketplace. To search current listings click below:

ADD VIP SEARCH WITH GRAPHIC

In addition to our professional resources, our agents provide unbiased advise, market history and detailed analysis so you can find the property that is right for you.

Buying real estate in New York City is a complex process involving the selection of attorneys and bankers, property searches and analysis, arranging appointments to view properties, and presentation of documents for approval. KG Properties of NY has the expertise and experience that is needed most when purchasing an investment property.

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.

Our comprehensive individual apartment management services include:

• Lease preparation and submission to building management
• Rent invoicing and collection
• Collection and maintenance of security deposits
• Handling all maintenance issues
• Detailed monthly income and expense statements
• Assistance in securing property insurance
• Payment of condo common charges and quarterly real estate taxes (on request)
• Direct deposits into owner accounts (on request)

At KG Properties, we ensure your investment process will be hassle-free. We continue to work with our clients to maximize their rental income while minimizing their vacancy. Now is the perfect time to invest in one of the greatest cities in the world.