That sentiment is evident among the foreign buyers who doled out currency in many hues to snap up one-third of all condominiums sold in New York since 2006.  3 weeks ago at my open house for a $600,000 one-bedroom, a French visitor, shopping bags in tow, told me that while my exclusive was not quite what she was looking for, she wanted me to find her “three to four” similar apartments as rental investments.

Their stories are varied—the proverbial Euro-zone buyer, like the one I described, leveraging a 20-percent-plus increase in buying power due to the currency cycle; the South Korean taking advantage of relaxed domestic restrictions on foreign real-estate investments; the Russian tycoon seeking a residence worthy of his/her standing in society; the Middle-Easterner parking money in a stable economy.  In unison, they speak volumes about the intrinsic value they see in New York real estate, and help sustain a local market with its home-grown challenges.  Whether they are seeking a pied-à-terre or a rental investment, foreign buyers have specific needs that are not always well-understood.

First, a condo or condop tends to be a superior option to a co-op.  Second, buyers should now be prepared to pay more than 35% in down payment, seek financing outside the U.S., or eschew financing altogether.   Third, buyers need to be educated on tax-adjusted cash-flow, estate issues (especially for those who have children), and general liability-shielding.  Putting a team together with an experienced broker, a knowledgeable real estate and/or estate attorney, an accountant, and a capable mortgage professional, and the good times shall continue to roll awhile longer.

Contact Arthur Hung.

Tags: Condominium, Euro-zone, Financing

This entry was posted on Tuesday, September 16th, 2008 at 1:00 pm and is filed under CORE Talks.