Foreign Investors Pledge Allegiance to U.S. Real Estate Is Strong Sentiment for Capital Appreciation Finally a “Buy” Signal? Despite a lack of placement opportunities in 2009, foreign investors in real estate say they remain committed to the U.S. as their preferred real estate investment opportunity. Read more... Guide to Homeownership in New York City Investing in NYC Tax Advantages to Homeownership Homeowners are able to deduct many of the costs associated with owning and maintaining a home. These tax advantages make homeownership more affordable. Currently, the IRS allows homeowners to make the following deductions on their federal, state and local income tax returns: Any amount spent on property taxes; All mortgage interest paid on mortgages valued at less than $1 million for not more than two homes; and All mortgage interest paid on home equity loans of up to $100,000. So, what does that mean? Here is an example: Ms. Smith just bought a three-bedroom home in Flatbush. She purchased it for $195,000, with a $20,000 down payment and a 30-year mortgage loan of $175,000 at 8 percent. In her first full year of ownership, Ms. Smith will accumulate deductions in the form of interest and property tax payments of $15,240. Those deductions for Ms. Smith, who is in the 28 percent federal tax bracket, amount to a tax savings of $4,260 in one year. Add that to her deductions of 8 percent for the state and local taxes she paid, and Ms. Smith's total savings are $5,486. Had Ms. Smith decided to rent, she would have made rent payments totaling more than $18,000 (assuming $1,500 per month) in one year, none of which would have been tax-deductible. For homeowners with multi-family properties, the tax advantages can be even greater because much of what they spend on home improvement can be considered deductible. Why Buy a Home in NYC? Many renters who begin to shop for a home to buy don't realize that the most affordable homes in the tri-state area are located right here in New York City. The median price of a home in Queens was $390,000 in 2004, but the median price for a home in Nassau County was $413,000. There are tremendous home values in the many historic and unique neighborhoods throughout the City. In each of these neighborhoods, homeowners can take pleasure not only in the cultural attractions, parks and schools in their immediate vicinity, but also in their proximity to Manhattan. No matter where in the five boroughs you live, you are never more than an hour from Manhattan by train or express bus. Property Tax in New York City Owning a home in New York City means lower real estate taxes: taxpayers here pay far less in property taxes than homeowners in the suburbs. Look at the following comparison: Nassau County Homeowner NYC Homeowner Location: Westbury Location: Bayside, Queens Home size: 3 bedroom Home size: 3 bedroom Baths: 2.5 Baths: 2.5 Home value: $589,900 Home value: $588,000 Annual property tax: $8,652 Annual property tax: $3,841 In comparing City property-owners to those in Rockland, Westchester and Nassau counties, you'll find that NYC homeowners pay anywhere from 45 percent to 85 percent less in property taxes. Currently, NYC homeowners pay their property taxes according to the following formula: 8 percent of assessed value x 14.55 percent. In other words, for a single-family home in Flushing with an assessed value of $300,000, the annual property taxes would be roughly $3,492 (8 percent of $300,00 is $24,000; 14.55 percent of $24,000 is $3,492). There are also a number of property tax exemptions available to NYC property owners that can make that amount even lower. For a full explanation of what those exemptions are and how you qualify for them, consult the New York City Department of Finance or call 311 and ask for the Department of Finance tax rate hotline. Reports
Is Strong Sentiment for Capital Appreciation Finally a “Buy” Signal?
Despite a lack of placement opportunities in 2009, foreign investors in real estate say they remain committed to the U.S. as their preferred real estate investment opportunity.
Tax Advantages to Homeownership Homeowners are able to deduct many of the costs associated with owning and maintaining a home. These tax advantages make homeownership more affordable. Currently, the IRS allows homeowners to make the following deductions on their federal, state and local income tax returns:
So, what does that mean? Here is an example:
For homeowners with multi-family properties, the tax advantages can be even greater because much of what they spend on home improvement can be considered deductible.
Why Buy a Home in NYC? Many renters who begin to shop for a home to buy don't realize that the most affordable homes in the tri-state area are located right here in New York City. The median price of a home in Queens was $390,000 in 2004, but the median price for a home in Nassau County was $413,000.
There are tremendous home values in the many historic and unique neighborhoods throughout the City. In each of these neighborhoods, homeowners can take pleasure not only in the cultural attractions, parks and schools in their immediate vicinity, but also in their proximity to Manhattan. No matter where in the five boroughs you live, you are never more than an hour from Manhattan by train or express bus.
Property Tax in New York City Owning a home in New York City means lower real estate taxes: taxpayers here pay far less in property taxes than homeowners in the suburbs. Look at the following comparison:
In comparing City property-owners to those in Rockland, Westchester and Nassau counties, you'll find that NYC homeowners pay anywhere from 45 percent to 85 percent less in property taxes.
Currently, NYC homeowners pay their property taxes according to the following formula: 8 percent of assessed value x 14.55 percent. In other words, for a single-family home in Flushing with an assessed value of $300,000, the annual property taxes would be roughly $3,492 (8 percent of $300,00 is $24,000; 14.55 percent of $24,000 is $3,492). There are also a number of property tax exemptions available to NYC property owners that can make that amount even lower. For a full explanation of what those exemptions are and how you qualify for them, consult the New York City Department of Finance or call 311 and ask for the Department of Finance tax rate hotline.
Country by Country, Foreign Investors Test US Markets As Some Nations Step Away Others Move in. The role of foreign investment in US real estate is often exaggerated in media reports but in recent years,cross-border investors have accounted for less than 10 percent of all property acquisitions. However, from 2005 through 2008, foreign buyers claimed at least $100 billion of US commercial property, a significant sum. Foreign investors are starting to turn their sights back on the US but the origins of the capital are changing and while the interest appears high, the actual acquisitions so far have been small.Through Q3’09, acquisitions by non-US investor shave totaled just $2.1 billion but as a percentage of all US acquisitions, the market share of foreign buyers is up slightly overall and significantly higher for office,hotel and apartment sectors. Report
We live in a global marketplace. While all real estate is local, not all property buyers are. A significant share of home purchases are made by people whose primary residence is outside of the U.S. Find out which are the top five countries of origin for foreign home buyers and how these buyers are utilizing the services of REALTORS®.
Full Report (636K PDF)
Foreign Investment in U.S. Real Estate (2008) This 19-page report covers foreign investment in U.S. real estate with a breakdown of the major countries with significant holdings. The report explains that prospects are good for continued healthy investment in U.S. real estate, given the strength of foreign currencies in relation to the U.S. dollar. An overview of today's market and a forecast for the coming year are included.
Full Report (286K PDF)
US Recovery Anticipated In May 2009 AFIRE, the international Association of Foreign Investors in Real Estate has conducted a mid year survey on attitudes and trends of international Real Estate investors. Survey
US Recovery Anticipated
In May 2009 AFIRE, the international Association of Foreign Investors in Real Estate has conducted a mid year survey on attitudes and trends of international Real Estate investors. Survey
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