Our team (Eileen Hsu, Morgan Evans and Catherine Jin) work with many foreign national buyers from both Asia and Europe buying in Manhattan Real Estate. One of our specialty is working with oversea parents buying Manhattan Real Estate for their children (young adults) that are current in New York either for school or work. We will work and arrange buyer appointments with the young buyers to determine their needs and ensure we have a strategic plan. And then we will communicate with the buyers' parents often oversea to help them understand the logistics and the purchase process of Manhattan Real Estate.
For Foreign nationals, it is important to understand the housing market here in Manhattan New York. More than 85% of the housing here in New York city are cooperatives, the rest of 15% or less are condominiums. With the restriction and requirements of Cooperatives, most of our "parents buying for children" buyers opt to purchase condominium instead of cooperatives for the liberal resale and sublet policy. contact us directly at (917)837-8869 so we can help explain better as well.
If you are a parent looking to buy for your child in Manhattan New York, here are some tips:
Time frame:What is your time frame as to purchase a condo or co-op here? Does your child have a lease that may expire soon? If there is no financing involved, a resale condominium requires about 30-45 days to process a condo application once the contract is signed. If it is a Co-Op, it can take anywhere from 90 days to more to process the co-op board package and interview. If you need financing, the process can be much longer for both Condo and Co-Op.
Funds: Is this going to be an all cash transaction? Or is it going to be financing? Prepare your funds and liquidate out of any money market for the down payment is essential. In Manhattan New York, at contract signing, we will require 10% of purchase price as down payment. If you need financing, the bank may require you to put down 20% or more of the purchase price in order to obtain financing.
Title of the property:Many of our buyers structure deals differently based on their specific needs and financial picture. Some prefers to co-purchase the property with their young adult child, some prefers the young adult to take title on their own, some prefers to establish an LLC (limited liability corporation) or a trust to hold the Real Estate. According to your needs, we can make some suggestions and also direct you to an expertise attorney who may be able to advise you better.
If your parents are buying the property for you, here are some tips:
If your parents are new to Manhattan New York market, make sure you have to let them know that there is condo and coop market. There is about 20-30% price difference between both housing product. If they are looking at properties online, it is important for them to know that not all coop will accept a parents buying for children scenario.
If they are buying a condominium for you, a good rule of thumb would be $1,000 per square foot for Manhattan Condominiums. This price per square foot will vary based on location, condition, building amenities, size and many other variables. But to keep things simple for them, at $1,000 per square foot, if they plan to spend $500,000, we are most likely going to be focusing on studio to alcove studio apartments.
If they are from out of town (another country or another state), you may want to let them know that Manhattan Real Estate market is unique and unlike anywhere else in the world. The purchase process is different than anywhere else they are from. If they are not sure of the purchase procedure, contact us directly at (917)837-8869 so we can help explain it better to them.
To Read more about other Manhattan Condos related blogs, please read below:
- Buying Manhattan New York Condo Must Read Part I - Parents Buying for Children
- Buying Manhattan New York Condo Must Read Part II- First Time Investor
- Buying Manhattan New York Condo Must Read Part III- Foreign Nationals
If you are looking to sell or buy your Manhattan New York Condo, we are the Manhattan Condo Specialists. Please contact us as we will be able to access ALL the Manhattan Condo listings in area of your preference. To receive prompt response, please email us at ehsu(@)elliman.com or (646)644-6929 or (917)837-8869.
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