New York City: Still the (Big) Apple of the Investors Eye!
Who doesn’t love The City that Never Sleeps? New York City is iconic, from movies filmed there to accents that people like to imitate. And, when it comes to real estate investment, the market seems poised to continue its love for all things NYC: Bloomberg Business reported in early 2016 that foreign investors are planning on putting even more money into U.S. properties this year than in 2015, with New York continuing to be not just the top target market in the country but also worldwide.
One reason for foreign interest in The Big Apple is the relatively low tax impact compared to other similarly-sized cities in other parts of the globe. Even with a state property transfer tax of 1% and a comparable city tax of 1.425% or less (depending on the purchase price), NYC is still far more attractive than, say, the 16% charged to foreign investors in Singapore!
Housing prices are also attractive for investors. According to public records, the median sale price in Kings County (Brooklyn) is currently $630,000 and is expected to rise almost 5% over the course of the year. And, experts believe that NYC is likely to continue to be a landlords’ market, with demand for rentals increasing with no matching expansion in rental availability. That’s good news for real estate investors looking to purchase new properties with little-to-no income lost due to vacancy.
All things considered, New York City should make every foreign investor’s list of prospective locations for future purchases. Is it on yours?
New York, Landlords Market, why invest in NYC