Investing in NYC Real Estate
Posted by Wei Min Tan on August 1, 2022
Investing in NYC real estate, in this case in Manhattan, is a strategy many high net worth global clients participate in to diversify their portfolio. Within NYC real estate, there are many sub-segments including residential condos, small buildings, commercial property, land etc. Here we are focusing on Manhattan residential condos because they are low risk, simple to understand and provide a good rental return. The key considerations are below.
Weimin’s article: Property Investment in New York
Knowing the market from a local’s perspective
The NYC real estate market is very local. Most buyers are locals and renters are almost all local. I say this because in some markets, Hong Kong, London and Singapore for example, foreigners play a relatively big part of the real estate market. But in NYC, it’s the locals who drive the market. A foreigner wanting to invest here needs to understand local demand, taste and decision drivers. This is only possible if you have local guidance.
Weimin’s article: 5 Reasons Buying Overseas Property From A Property Show Is A Bad Idea
Getting a deal
In the U.S., all real estate for sale is public information. Within 24 hours of getting a sale mandate, the seller’s agent needs to list the property onto the “market” which means getting it onto the broker system and all the relevant websites (streeteasy.com, trulia.com). As such, everyone has access to the same inventory. This makes NYC the most efficient real estate market in the world. If something looks too good to be true online, there must be a reason (or someone would have already bought it, and it wouldn’t be there for you to find while sitting 3,000 miles away).
The deal lies in getting the right property that will provide good rental and appreciation returns. Not merely access to properties.
Legal and logistics considerations
NYC real estate is purchased under individual name, LLC, Corporation and various other structures. Having an experienced lawyer on the team to advise on the purchase is a crucial aspect. Then there are little things like how best to transfer funds for the purchase, notarization of documents at the embassy etc. – small things that become big when not handled properly.
Renting out the real estate
After the purchase, renting out the condo involves listing the property, showing to potential tenants, screening the applications, preparing for move in etc. A landlord wants a good tenant, while a tenant wants a nice landlord. There is much behind the scenes effort to help facilitate this relationship.
Weimin’s article: Buying property in New York to rent out
These are just points to keep in mind when investing in NYC real estate. With the right purchase, the asset will prove to be a stable and secure investment that will provide security over the long term.
What We Do
We focus on global investors buying Manhattan condos for portfolio diversification and long term return-on-investment.
1) Identify the right buy based on objectives
2) Manage the buy process
3) Rent out the property
4) Manage tenants
5) Market the property at the eventual sale