NYC property: Facts and figures
Thinking of buying NYC Property? Knowing a bit about mortgage loans and taxes will help you make good investment choices.
Getting a Mortgage Loan
While mortgage loan financing is available for foreign purchasers and can be obtained either through a US or non-US bank (a 2% mortgage tax applies if the mortgage is through a US bank), lenders have notably tightened credit criteria in the wake of the credit crisis and will require a down payment of around 40% from a foreign buyer. It is important to become prequalified for a mortgage before beginning your property search.
Taxes Complicated Affair
Some NYC buildings have tax abatements where taxes were reduced for a certain period of time as an incentive to spur development. Generally, however, New York City transfer taxes are 1% of the purchase price for properties less than $500 000 (R5,36 million) and 1,45% for properties equal to or over $500 000. If the property is over $1 million (R10,7 million), a 1% Mansion Tax must be paid.
NYC Property in Numbers
1 443 753 – Average sales price in US dollars (approximately R15,5 million)
106 – Average price in US dollars per square metre (R1 137)
12,3 – Percentage fall in number of property listings from 2012 (a 14-year low) 21,2 Percentage increase in sales from 2012 (the second highest number of sales in 25 years)
Get in touch with…
- The US Embassy in South Africa if you’re planing on residing in your NYC property. If you’re purchasing only for investment purposes, then no need to worry.
- These leading NYC property agencies to help you find exactly what you’re looking for:
Text: Jocelyn Warrington and Juliet King