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Q1: How long does a typical closing take?
A: It depends on the exact circumstances. An all cash purchase can be closed in 3-5 weeks if funds and everything else is ready. A ﬁnanced purchase usually doesn’t take longer than 2 months to ﬁnalize, but can stretch out to several months if complications occur.
Q2: How much in liquid assets or cash in the bank is recommend or required to have after the purchase?
A: A minimum of 2 years of maintenance costs is required by most buildings in the city.
Q3: How long does a pre-approval take?
A: It can be done in 24 hours.
Q4: Who is responsible for paying the brokers commission?
A: Unlikely to the rental market, the broker’s commission at a purchase is always to be paid by the seller. The broker’s service is free of charge for the buyer.
Q5: How do I make sure the title on my property is free and clear?
A: A title company and insurance provided by Mansion Capital will guarantee a clear title on all purchases.
Q6: What taxes does a foreigner need to pay on a property purchase in New York?
A: All purchasers have to pay the following taxes:
1) if the purchase price is $1M or more, a 1% mansion tax, of whatever the purchase price is, will be due by the buyer
2) new developments, or sponsor apartments usually require the buyer to pay a transfer tax of 1% for properties under $500K and 1.425% to the NY State for properties equal or over $500K
(We always recommend to get the professional guidance of one of our accountants ! on any tax related issues)
Q7: What are other expenses associated with New York condominium property ownership?
A: Taxes, common charges, insurance are the main expenses on an all cash purchase next to mortgage principal and interest on a ﬁnanced purchase. Annual taxes average out to 0.5% – 1% of the property value and common charges average $1/Sqft per month and can go up depending on size of the apartment and building amenities.
Q8: Is there ﬁnancing for international buyers?
A: Yes. We work with a variety of mortgage professionals that will make it happen. A downpayment minimum of 50% of the purchase price is generally required.
Q9: What is the differences between a Condominium and a Co-op?
A: Co-op buildings are owned by a corporation. The buyer will own a certain amount of corporation shares, NOT the real property. Co-op tenants are subject to rules and regulations set by the corporation itself. Monthly maintenance charges include real estate taxes, building maintenance and management fees. Condominiums are classiﬁed as “real property”. The buyer holds a deed instead of a share amount. The building rules allow the owner to sublet or rent out the property which makes it much more attractive for investors. Real estate taxes are charged separately from common charges that reﬂect monthly maintenance fee.
Q10: Why Invest in New York City Real Estate?