Why Successful Business Owners and Professionals Globally Invest in Manhattan Property
Posted by Wei Min Tan on March 7, 2020
Successful entrepreneurs and professionals from around the world have been investing in Manhattan apartments for a long time. We are very familiar with the reasons clients invest in Manhattan, New York because this segment is our focus.
The basic drivers are as follows:
New York property is regarded as a safe investment against inflation, economic uncertainty, political instability and even theft in their home country. High net worth investors work very hard to accumulate wealth and they work hard at preserving it as well.
Clients investing in Manhattan property are not expecting high returns, which can be more easily attainable through businesses or property in emerging markets. Rather, they expect a stable rate of appreciation. At a minimum, they want their principal investment to maintain value.
Weimin’s article, New York Property Capital Gains and Other Taxes
Clients understand the diversification concept beyond the business school split of 60 percent stocks, 40 percent bonds. Property in a prime city like Manhattan (or London) diversifies their asset portfolio.
Clients who are business owners do not have time to track and endure the daily fluctuations of the stock market. Manhattan property brings peace of mind and the semi annual or annual price updates they get is predictable.
Leaving For Children
Property investment in a top city is also a way to leave assets to children. Since price appreciation with property is driven by time, investors appreciate knowing property value would increase over time as their children get older.
The current down payment to purchase a property is small relative to what the property value would be 10 or 20 years from now. Appreciation in Manhattan is certain because this is a land-locked island with an ever growing population.
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
Deal example: Client’s condo in Midtown East which was reserved at pre-construction stage. Location is excellent, close to United Nations, Citigroup Center, Blackstone, BlackRock. This development is The Sutton, with only 10 percent down at booking. Notice the amazing casement windows which creates a wow factor.
Weimin’s article, Strategy with Buying New Launch Property in Manhattan
Deal example: Represented investor client who bought at pre-war building Parc vendome. We identified the value buy, renovated the apartment, and it was rented within 1 week after renovation was complete. Close to Central Park and amazing pre-war details made this a good investment. Before and After photos below.
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