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I am looking to buy a 1 bedroom apt in the meat packing district/west village/soho. The idea is to down pay the apt , and with a mortgage finance the 70% of the unit. This would be as an investment, my idea is to pay the mortgage with the monthly rental of the apt (yearly contract unfurnished). Do any of you have any further experience in this? Any thoughts?
1) Buy a condo, not a co-op.
2) Getting a mortgage may be challenging if you do not have US-based income or other assets.
3) Find a rental agent (not quite the same as a rental broker) to deal with the leasing, rent collection, tenant management, etc. -- not something you want to try to handle from another country.
4) Be prepared for the rental income to fall short of covering the mortgage, common charges (condo association fees), repair/upkeep expenses, and rental agent fees.
Is it really just an investment? If your goals are purely financial, it's much less complex to buy an investment vehicle instead -- REIT shares, real estate mutual fund, etc.
Federicos, a pair of quick questions: you live abroad, but are you a "US Person" (i. e., a US national or a permanent resident) who has presumably filed Form 1040 and Form 2555 and declared the income you've earned abroad?
If you're not, and haven't, borrowing will become much more difficult. (It's tough enough even when borrowing to buy a place for yourself to live in; as an investment, interest rates will go higher.)
Another issues is that many of the apartments in the West Village are coops. Many coop boards impose restrictions on renting apartments (for example, you can't rent out an apartment you buy until you have lived there for two years first). The supply of condos in the west village/meatpacking district is limited. One exception is the Caledonia - but they are fairly pricey - roughly $1500+/sq foot I think.
if you want to lose money for 5-10 yrs, then it makes sense to buy. if you want to buy, you will have to buy cash (loans made in your country) or have to go to private mortgage route with high interest rates.
I honestly have no clue why foreigners want to buy here when I factor in so many reasons not to buy and only a few positives. I am not talking about the ultra-wealthy with enough capital to live abroad years at a time and own a few yacht, etc. I am talking about the upper-middle class from abroad who thinks NYC is a safe haven but maybe forget to factor in the
1) FX rate
2) Cost of carry for the FX rate
3) Cost of carry for the interest rate differentials if financing domestically and converting the funding to USD
4) Tax treatment
5) Money abroad - although some believe that's plus
6) RE tax increase in NYC
7) Maintenance increase
8) Common charges increase
9) Condo only
10) Transaction cost
11) etc, etc, etc
1,2,3 and 5 are identical
6,7,8 are all integrated
10 has nothing to do with foreigner vs. domestic.
federicos. i HAVE A two bedroom 4 fl. walk up coop for sale in south harlem (on 7th ave and the corner of 111th street0; one block from central prk north. there is no board approval and an investor friendly offering plan. the monthly expense for the unit is cheaper then renting a studio in your desired location. 347 490.0212
garrythemorongaines wants an international buyer who is looking downtown condo to rent with financing, to up wayyyyyyyyyyyyyyy uptown to a WALKUP coop that is almost worthless in terms of rent. we have winner here...
NO, he's saying the buy that for an investment.
"3) Find a rental agent (not quite the same as a rental broker) to deal with the leasing, rent collection, tenant management, etc. -- not something you want to try to handle from another country. "
-Please explain the difference to me. Also, please expaling to me why you would use a rental '____' over a property manager...
Even if you aren't a citizen/ perm resident alien, there are financing options for you at around 50% leverage. Generally speaking its going to be a lot less hassle to buy a condo, rather than buying a coop if you are an international buyer.
Sales Manager/ PrimeLending