Frequently Asked Questions
Who pays the
broker fees at closing?
The seller is responsible for the broker fees at closing. However, the buyer’s broker and seller’s broker would split the commission 50/50 or any amount they agreed. The seller’s broker might get all of the commission when no one represents the buyer at all.
What are the tax advantages of having a mortgage?
If you are using itemized deduction, you can deduct property tax up to $10,000 per year, together with the interest paid on the mortgage of your primary residence and second home, up to the loan amount of $750,000 (if the mortgage is originated after 1/1/2018). The higher the deduction is, the lower your taxable income would be, so you pay less tax.
What are the expenses of owning a property in New York?
The main cost of owning a property in New York includes: real estate tax, common charges, home insurance, and monthly mortgage.
Some buildings in New York offer property tax abatement that eliminate or significantly reduce property tax payments. This benefit could last for years or even decades. As an added bonus, property tax abatement can improve the resale value of your property as long as the abatement is still in effect.
Do you provide property management services?
Yes, we do. Our property management team provides services including rent collection, bill payment, property maintenance, tenant liaison, financial reporting as well as tax filing.
As a foreign investor, do I have to pay all cash? Do I have to physically present in the US to close the deal?
Foreigners do not have to pay cash on real estate transactions. We are working with several banks that offer different mortgage programs to foreign investors. Normally minimum down payment requirement is 35% to 50%, which means that you may get mortgage up to 65% of the purchase price, depending on the program. If you are not able to present for the closing, you can simply sign a Power of Attorney and assign someone (either your closing attorney, your real estate agent or any friends or relatives) to represent you.