Why Foreign Investors Choose New York

New York City remains the premier destination for international real estate investment in the United States. Despite high prices and complex regulations, the city offers unmatched benefits that I explain to my clients:

  • Global safe haven: NYC real estate has historically held value during global economic uncertainty
  • Rental income potential: Strong rental demand from professionals, students, and tourists
  • EB-5 opportunities: Multiple regional center projects offering green card pathways
  • Currency hedge: Dollar-denominated assets protect against home currency volatility
  • No disclosure requirements: LLCs can hold property anonymously (though this may change)

No Visa Required to Purchase

Foreign nationals can buy New York real estate without any visa or residency requirement. I have helped clients from China, Russia, Brazil, and the Middle East purchase property while residing entirely abroad. However, getting a mortgage as a non-resident requires specialized lenders.

Property Types for Foreign Investors

New York offers several property types, each with different rules and investment characteristics:

Condominiums

The most popular choice for foreign buyers. You own your unit outright plus a share of common areas. Most buildings allow foreign ownership without board approval for purchase.

Starting from $500K (outer boroughs) to $10M+ (Manhattan)

Co-ops (Cooperative Apartments)

You buy shares in a corporation that owns the building. Co-op boards often reject foreign buyers or require substantial liquid assets. I generally advise my foreign clients against co-ops unless they have strong US ties.

20-30% cheaper than comparable condos

Townhouses & Brownstones

Single-family homes, primarily in Brooklyn and Manhattan. No board approval needed. Excellent for privacy-focused investors but require more management.

$2M-$30M+ depending on location

New Development Condos

Pre-construction purchases in new buildings. Developers actively court foreign buyers. Often require 10-20% deposit with remaining balance due at closing.

Premium pricing but newest amenities

Manhattan Neighborhoods for Foreign Investors

Here is my breakdown of Manhattan's key investment neighborhoods:

Neighborhood Price Range Investor Profile Notes
Billionaires' Row (57th St) $5M-$100M+ Ultra-high-net-worth Trophy properties, Central Park views
Tribeca $3M-$50M Families, celebrities Loft conversions, privacy-focused
Upper East Side $1M-$20M Traditional buyers Many co-ops (harder for foreigners)
Hudson Yards $2M-$30M Modern luxury New development, foreign-buyer friendly
Financial District $800K-$5M Rental investors Strong rental demand, newer condos

EB-5 Investment in New York

Green Card Through NYC Real Estate Development

New York hosts numerous EB-5 regional center projects that offer a path to US permanent residence. Here is what I tell my clients about NYC EB-5 investments:

  • Investment amount: $800,000 for Targeted Employment Area (TEA) projects in designated areas, $1,050,000 for non-TEA
  • Job creation: Projects must create 10 jobs per investor (can include indirect and induced jobs in regional center projects)
  • Popular project types: Hotel developments, mixed-use buildings, affordable housing projects
  • Processing time: Currently 2-4 years for conditional green card, depending on country of origin

EB-5 Due Diligence is Critical

I have seen investors lose their entire EB-5 investment in failed projects. Before investing, I conduct thorough due diligence on the regional center's track record, project financing, job creation methodology, and developer experience. This is not a decision to make based on marketing materials alone.

Tax Considerations for NYC Property

New York has significant tax implications that I discuss with every foreign investor client:

Property Taxes

NYC property taxes are relatively low compared to property values (typically 0.5-1% of market value annually), but this is because assessed values are artificially low. However, condo common charges can be substantial ($1,000-$5,000/month).

Mansion Tax

Properties sold for $1 million or more are subject to the New York State "mansion tax" ranging from 1% to 3.9% depending on purchase price. For properties over $2 million, expect 1.25% or higher.

Transfer Taxes

  • NYC Real Property Transfer Tax: 1% (under $500K) or 1.425% ($500K+)
  • New York State Transfer Tax: 0.4% (under $3M) or 0.65% ($3M+)
  • Combined, you may pay 2-4% in transfer taxes on purchase

FIRPTA on Sale

When you sell, FIRPTA requires 15% withholding on the gross sale price (not profit). I help my clients structure sales to minimize this impact and apply for refunds of excess withholding. Read my complete FIRPTA guide.

LLC Structuring Considerations

Many of my clients purchase NYC real estate through LLCs for privacy and liability protection. However, NYC now imposes an annual $200-$1,000 penalty on LLCs holding residential property. I help clients weigh the privacy benefits against these costs.

The Purchase Process

Here is the typical timeline I guide my clients through for a NYC condo purchase:

  1. Property search (2-8 weeks): Work with a buyer's agent familiar with foreign investors
  2. Offer and negotiation (1-2 weeks): Submit offer, negotiate price and terms
  3. Contract signing (1-2 weeks): Attorney review, 10% deposit typically required
  4. Board package (condos) (2-4 weeks): Financial documentation, personal references
  5. Financing (if applicable) (4-8 weeks): Mortgage approval from foreign-national friendly lenders
  6. Closing (1 day): Wire remaining funds, sign documents, receive keys

Total timeline: 2-4 months for an all-cash purchase, 3-6 months with financing.

Financing Options for Foreign Buyers

While many of my foreign clients pay cash, financing is available:

  • HSBC: Offers mortgages to foreign nationals with Premier banking relationship
  • Citibank: Citigold clients can access foreign national mortgage programs
  • Specialized lenders: Companies like First Republic (now part of JPMorgan) cater to high-net-worth foreign buyers
  • Typical terms: 50-70% LTV, rates 1-2% higher than domestic mortgages

Ready to Invest in New York Real Estate?

I can help you navigate NYC's complex market, structure your purchase correctly, and plan for FIRPTA implications from day one.

Sergei Tokmakov, Attorney — California Bar #279869