Qi-Homes has teamed with Jennie Ma, licensed associate Real Estate Broker with “Corcoran group real estate” in New York City. Jennie, originally from Hong Kong has over 15 years real estate experience in New York and brings you a wealth of knowledge on how to invest in Manhattan real estate market.
LEARN MORE about closing cost for New York City Condos
A comprehensive BUYERS GUIDE to for overseas investors buying in New York
Contact us for introduction to Jennie in New York HERE
An Overview New York City Properties
“The City That Never Sleeps” is a nickname that originated in New York City from Frank Sinatra’s famous song in 1977. This name is appropriate for a lot of reasons, mostly because New York is one of the most dynamic cities, always a world-renowned destination, always bustling with activity.
New York City has a population of approximately 8.6 million (estimated in 2013), Manhattan island with about 1.6m. Buying a property in Manhattan can be quite complex, especially for foreigners. For example, two apartments can be very similar in size, layout and amenities, but the buying processes can be in stark contrast to each other depending on if the property is a co-op or a condominium.
From one neighborhood to the next can make for a very different experience as well – from the Upper East Side, Upper West Side, Midtown East, Midtown West, and Downtown (Chelsea, Gramercy Park, Village, SoHo, Tribeca, Battery Park City, and Financial District).
Purchasing a new development also has its variation in price per square foot and closing costs.
Allow us to present a realistic map of what makes New York City the spectacular place it is so well-known to be.
- Manhattan is home to the world’s trading hub, The New York Stock Exchange on Wall Street.
- Manhattan is the fashion capital of the United States where world famous people in the industry pass through frequently for business and entertaining.
- Some of the nation’s best schools are located in New York City or just a short drive away including Columbia University, FIT, Fordham University, NYU, Parsons, Princeton and Cornell. The presence of these top-notch education facilities helps to explain why Manhattan is a popular choice when selecting a location to have
- Art & culture abound with countless museums and original stage shows year round
- To add to its dynamism, Manhattan has some of the most interesting and eclectic restaurant options in the world. There is truly no need to cook at home, catering to the conveniences of a busy-life of a New Yorker.
- 70% of current residential options in Manhattan consist of rental buildings, of the remaining 30%, 75% are Coops and 25% are Condominiums (estimated in late 2000). Hence condominiums tend to be a bit pricier than co-ops, in addition to some further distinctions, outlined below.
- A phenomenon that’s limited almost entirely to Manhattan; they are the traditional form of owning an upscale apartment for close to 100 years.
- Coops are owned by an apartment corporation, when purchasing within a co-op building, you are purchasing shares of the corporation that entitle you as a shareholder, to a “proprietary lease”.
- All prospective purchasers must interview with the board of directors who are shareholders in the building to which a board approval will be communicated to the purchaser if the co-op accepts their application or not.
- Prior to the interview, prospective purchasers prepare a detailed “Board Package” which usually contains personal and professional letters of recommendation as well as a great deal of personal information concerning income and assets.
- Subleasing a co-op can be difficult. Each co-op has its own rules and they should be carefully reviewed prior to submitting an application to rent.
- A “Board Package” is required to be submitted by a prospective sublet tenant and an ”interview” in front of a board of directors will also be required to determine if they qualify for the application.
- As opposed to a co-op, a condominium apartment is “real” property. A buyer receives a deed just as though he or she were buying a house. Each individual apartment in a condominium receives its own tax bill.
- The straightforward nature of buying a condo coupled with the fact that in some cases, you can get a higher financing of the purchase price and rent it out at will, makes condominiums the number one choice for flexibility.
- “Resale” – buyers will prepare a “Board Package” which usually contains personal and professional letters of recommendation as well as personal information concerning income and assets as a protocol so a building buyers enter into will be informed of the new owner’s basic information. No interview is required.
- “New Development” – buyers to not have a go through a Board Package process, as long as proof of funds are ready to be provided upon request while making an appointment. Buyers will need to pay two different New York transfer taxes (please see closing costs estimate sheet), whereas buying a resale property, the seller pays these transfer taxes.
- A Condop is a term given to a co-op that has rules and by-laws similar to that of a condominium which comprise of a small percentage of owned residential buildings. In most buildings, the freedom to sublet, put a lower down payment at closing, and easy board approval are characteristics of a condo that have been adopted by a co-op.
- Closing costs will be similar to that of a co-op (significantly lower than condo’s if financing) and you will be buying shares in a corporation rather than real property.
Over the last two years, Manhattan condominium property prices have increased 20% and today, Manhattan’s average and median price per square foot is still competitive to Hong Kong and London. Buildings offering views of Central Park tend to have the highest price per square foot. Downtown Tribeca in 2014 hit its highest price per square foot in the history of downtown with an ultra luxury new development. With limited land to build, Manhattan has been experiencing many more upcoming new conversion developments that are mostly pre-war office buildings.
Contact us for introduction to Jennie in New York HERE