Property Investment New york

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Isabella

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I am interested in buying a property in New York City and was hoping that someone might have some experience or advice to offer me. Having recently returned from a short trip I was very impressed with an area in Brooklyn, which is experiencing rejuvenation similar to that seen in areas like Soho in Manhattan ten years ago. This area is one stop away from Manhattan on the subway about a five-minute ride and is next to the Brooklyn Bridge. Only recently has this area being zoned for residential development in what was once a derelict commercial area dominated by large warehouse type buildings. Already the area is very popular with young families and city exec’s drawn to the larger less expensive properties offering Manhattan skyline views. As I have little or no experience in property investment and even less knowledge of doing so in the states I could really avail of some advice on the investment itself, legal matters, taxes etc.

My intention would be to buy a studio or 1 bed condo apartment for letting. I am considering two options, the first to purchase a 1 bed from the plans in a new development for $550K requiring a 10% deposit with completion due 2006. The second would be to purchase a studio apartment now for $450K for immediate letting. Rents appear to be strong averaging $2600 / month for a 1 bed. I will raise the deposit here but am unsure of what the best route would be to obtain the mortgage?
 
As I have little or no experience in property investment and even less knowledge of doing so in the states
Given your lack of experience, I would tread very carefully with this kind of investment. You'd need to fully understand the legal issues, the tax issues, the local charges, the tenants rights etc etc before going down this road. Why have you chosen residential property as the best type of investment for you? Have you read the Guide?
 
I could really avail of some advice on the investment itself, legal matters, taxes etc.

If you are considering investing over half a million in such a project, then you will have to spend considerable amounts on money both here and in the States on appropriate tax and legal advice. Given the scale of the investment, it would be crazy to rely on whatever unverified and/or possibly incomplete guidance you get here.
 
I would second Rainydays advice on this investment.

In particular you need to look at the tax implications of owning and renting out a property in New York. There are local city, state and national tax considerations. In addition, once you earn any income within the US the IRS (US Revenue) will require full tax returns every year and will try and get as much tax out of you as possible.

To be honest, Brooklyn isn't that great an area - a lot of it is quite industrial and run down and inhabited with a large proportion of lower income families. Traffic can be a nightmare and its on the over flight path to La Guardia airport.

For the kind of money you are proposing to spend (approx $700,000 based on today exchange rate) you should be able to get an apartment on Manhattan which would have a much better rental return - I did a quick search on [broken link removed] and found a 1.5 bed apt on 81st Street (Upper East Side) in an apt complex with doorman for $635,000 available immediately. Rental return on a 1 bed in the Upper East side is around $3,000 per month.

I think you need to do a hell of a lot more research before spending that much money on an area you don't know.

efm
 
Like Isabella, I too am interested in buying an apartment in New York and posted a query about same some time ago but got no replies.
I'm in the fortunate position of having a family member willing to live in it and pay me so I can pay the mortgage which would be raised here.
I've got as far as identifying areas suitable and know the difference between condos and coops and the problems therein. But I still haven't found any comprehensive guide to the tax and legal concerns.
Books abound on buying property in Florida but I haven't even found an on-line guide that's relevant to New York. Next stop might have to be an Irish solicitor competent in dealing in this area but I'd rather be able to do as much research of my own beforehand.
Any further advice would be appreciated.
 
I'm in the fortunate position of having a family member willing to live in it and pay me so I can pay the mortgage which would be raised here.
But would you sue them/evict them if they didn't pay the rent??
 
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