Hi there, we are a family from Australia with cash to buy an apartment in NYC (under $150k) outright. Can we buy a coop from overseas?. I'm a US

Asked by Jodiphillis, New York Wed May 18, 2011

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Jacques Ambr…, Agent, Forest Hills, NY
Thu May 19, 2011
You are not clear about your intentions. If you are hoping to purchase an apartment without a mortgage for $150k you will not get much. In Queens it would buy you a studio. If you are going to use this as a downpayment, with a mortgage, and you are a U.S. citizen then buying an apartment then the only issue is in passing a coop board. I would suggest going towards a Condo or sponsor apartment with no board approval.
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Rob Schleder…, Agent, Brooklyn, NY
Wed May 18, 2011
Hey Jodiphillis.
I've counseled a few of my fellow Australians on such matter. If you have $150k cash it is possible to get a loan here at close to US rates. You will have to put 35-40% down however.
That could mean a budget $400-450k which would have to include closing costs of around 5-6%.
Does any of this make sense.
Would you be an owner occupier or are you looking from an investment perspective?
Rental returns on residential units are around 6%. Given the current state of the market, however, one could reasonably expect fair to generous capital gains from the NY market over the coming years.
There are also stable opportunities in outlying regions that provide better rental returns at the cost of capital gains.
Feel free to contact me if you'd like further direction.
Best of luck with your endeavour.
Rob
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Nirmala Cara…, Agent, Bronx, NY
Wed May 18, 2011
Dear Jodiphillis,

Based on the information that you provided there are Coops for sale in Harlem within that range but unless it is a sponsor unit, you will need to meet with the Coop board. You can definitely purchase a unit but depending on the exact area that you are interested that will determine the type of apartment you can purchase.

In Parkchester in the Bronx, you can purchase a three bedroom condo for that price all cash and you do not need to do a face to face interview with the board.

Best of luck.

Nirmala Caraballo
Licensed Real Estate Agent
Cruse Realty
Tel.: 646-479-7873
E-mail: nhcaraballo@yahoo.com
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Sami, , New York, NY
Wed May 18, 2011
I suggest you go online like you just did and get a proper sense of what property prices are first before you go to the next step with your question, What the other responses are not telling you is that $150k is about enough for a parking space and the broker fee, now we can talk about how much you want to spend on an apartment.
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Bestplace2mo…, , Kingston, NY
Wed May 18, 2011
Hello there,

A condo would probably be a more straightforward transaction for an overseas buyer, and I agree with the respondents that $150k is probably an unrealistic or at least highly limited price range for NYC.

All the best,
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Gerard Carney, Agent, Spring Hill, FL
Wed May 18, 2011
Buying is easy enough, its the taxes, insurance, and maintenance fees that can sink you in NYC
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Brittney Goo…, Agent, New York, NY
Wed May 18, 2011
Hi Jodiphillis,

It is not uncommon for overseas investors to take advantage of the NYC real estate market. Co ops however will be difficult. The structure of Co-op regulations in the US can make it difficult to purchase shares within a co-op without established credit. In addition, the process can be long and without any feedback they can deny you. I would advise teaming up with real estate agent that has experience in overseas investors and can guide you through the process. In fact, overseas buyers many times are able to reap many tax benefits. Most certainly consider Condo's, or for sale by owner's property, in the outer 4 boroughs. Good luck! If I can assist please do not hesitate to reach out.


Regards,


Brittany C. Gooden
SVP of Commercial Leasing & Sales
WellMax Realty
646.405.6405
303 5th Ave, suite 1701
New York, NY 10016
Brittany@wellmaxrealty.com
Brittanycg@gmail.com
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Anna M Brocco, Agent, Williston Park, NY
Wed May 18, 2011
Keep in mind that when it comes to purchasing co-ops, co-op boards have their own financial requirements that must be met, as well as occupancy rules; therefore if the unit will be bought for investment purposes you may wish to consider condos instead. Depending on the desired size, consider expanding your search area.
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Kelly Killian, Agent, Astoria, NY
Wed May 18, 2011
Hi JodiPhillis:
Purchasing a co-op will require an interview in person, although a creative agent may get the board to interview you over skype. With that said, you can purchase a co-op sight unseen, but it will be complicated by the interview process.

Location though will be difficult for you as $150k won't buy you much in NYC even in the boroughs. It most likely will be a small apartment, in not the best area. Now, if you can move to about $350k, it will still not be the largest, but will get you a nice co-op or a good sized condo in Queens or further out in Brooklyn.

Kelly Killian
Bond New York, Manhattan, Western Queens and Brooklyn Near the City
cel 954-675-9915 SKYPE kelly.killian1
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Laura R. Sc…, Agent, Miami Beach, FL
Wed May 18, 2011
Hi Jodi Phyllis--
Funny I just sold an apartment to an Australian buyer Glenn who bought sight unseen...I would be very interested in speaking with you further about you buying in New York and love the opportunity to work with you. Please email me directly at Laura@kwnyc.com. I look forward to hearing from you.
Best,
Laura
0 votes
Jenet Levy, Agent, New York, NY
Wed May 18, 2011
Jodiphillis,
If it will not be owner-occupied, and if you do not have a US credit history, you need to be considering condos rather than co-ops. You will not be able to get a condo in Manhattan for $150K, but possibly in one of the other boroughs.
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