Autonomy

Hello,

I live in the dank and musty Middle East Forum section of BE - I rarely leave there, it's just too scary...

So anyway, I just wondered if someone can advise and answer (even PM me) on a Brit purchasing and owning a property in NYC.

Specifically - would a mortgage be available, would there be a visa (of any nature) on purchase and has any one you know bought without a residence visa?

I'd be really grateful if you can give me any pointers... don't flame me too bad...

Thankie,

Auto.

fatbrit

You can purchase but there's no right to visit or live in your property....so you'll probably be stuck with the 90-day visa waiver, i.e. you receive no special benefit from owning property regarding the visa. You should spend more time out than you spend in, and you can't work while here.

Getting a US mortgage is probably possible but you'll need to put down around 30% and have to shop around a lot. Expect to pay a premium for not having US residency, work history and credit score.

Watch out for property taxes -- they can be steep.

Might be an idea if you told us what you wanted it for. Investment? Rental income? Regular visits?

Autonomy

Top answer - many thanks.

Mainly investment at this stage with long term rental covering a 70% repayment mortgage in an upcoming area. Most likely Manhattan, below 59th / Central Park. Would love to have the abilty to live / visit significantly in about 10 years from now...

The current goal is to own long term rental properties with repayment mortgages in capital cities that will come to fruition as we go from 45 years to 65 years old...

Bob

Once your old and wrinkly, like Ray, and retired, you'll be more likely able to get the B1/2 visa, basically a tourist visa that'll let you in for up to 6 months as long as you can show you've got the readies to cover the cost of living without the need for work, mind you, by then, medical insurance will be insanely expensive and part of the reason a lot of people don't retire here for the long term.

Autonomy

I'm 34 now Ol' bobbie - I love NYC. Would love the ability to visit decently each year. With the right place and 100% re-investment of the long term rental we's have the appartment investment paid off in 15 yrs.... just a little dream i guess.

fatbrit

So you're likely looking for a condo/coop there. If the maths adds up, would think the make/break of the whole scheme depends on the reliability/honesty of who you choose as property managers. BTW, under current IRS rules, you will be liable for CGT on selling.

YankeemovingAbroad

How much do you want to spend for a place?

Autonomy

Was there just recently - 1 beds in Gramercy were in the $500,000 range - I'd be doing a lot more study of course, although this is the range $500-600,000 if it really added up to be worth it.

Fatbrit - what is the approx CGT currently? You'd be hit with this if non-resident?

fatbrit

You'll be hit with this @ 8% to 15% -- USCs (and PRs) have a large exemption for their primary property, but you won't. The escrow will withhold 10% when you sell and transfer it directly to the IRS to pay for this.

You'll need to file federal, state and city taxes on the income. There may also be an additional tax for rentals -- dunno about NY I'm afraid -- every place is different in the US. Sure someone'll chime in.

There's also a horror inheritance/gift tax which has big exemptions if you're a citizen but diddy little ones if if you're johnny foreigner -- needs extra planning for -- look at placing it in a trust.

YankeemovingAbroad

In NYC $500,000 will buy you a place with the bare basics.Gramercy is a good choice to pick for investing,a very trendy area.In NYC as with most cities its all about location location.If you could go up abit to $650-700,000,you'd find a place with a better view and more bells and whistles.As I'm sure you know,allways buy while thinking resale value.Just a tip from your friendly mortgage consultant

If you want to view properties in NYC,check out the realestate page on.................www dot newyorktimes dot com. Click on realestate and put in your desired specs.

Autonomy

Thanks Yankee & Fatbrit - your answers have helped a lot. Now, where did I leave that $1/2 million?

Thanks a lot,

Auto.