Transaction costs, better known as "Closing Costs," when buying or selling property in Manhattan, New York.
The transaction costs for a foreigner buying property in New York is the same as for a U.S. citizen. There are no incremental taxes or stamp duties levied on foreign buyers, unlike in many countries that are trying to curb inflow of foreign investors. A foreigner may decide to own under a more complex entity structure and this would incur additional expenses. However, a local may decide on similar complex entities as well.
For the buyer, the all-in works out to around 6 percent of loan amount if there is mortgage financing. If a cash purchase, it works out to around 2 percent of price. For the seller, transaction costs amount to around 8 percent of price.
We do not have a "stamp duty," which is a British term. Our equivalent of the stamp duty are the various government taxes listed below.
Real estate tax : Will be pro-rated back to seller based on what seller has already paid for post closing period.
1) 959 First Avenue in Midtown East. Represented multiple buyers at the $2 million price point. Amazing detailing and finishes. Property reserved at pre-construction stage and completed about 2 years later. This is a Toll Brothers development and reservation deposit was a very attractive 10 percent. Rented to high quality tenants since closing.
2) Sixty Four Condo, Upper East Side. Top amenity building in the Upper East Side's 60s with an amazing roof deck with BBQ grill (pictured), a WOW factor for tenants. At purchase, the Q subway line extension was in progress and it is now completed. Represented multiple transactions at the $1 million price point when the building was converted.
3) Greenwich Club, 35th floor water view one bedroom apartment facing south. Around $800,000 at purchase, appreciated 40 percent since then. A high floor, south facing, water view is the most desirable view in Manhattan. Purchased with long term tenant in place hence no vacancy related to finding a new tenant.