New York has always had a reputation for being the mecca of foreign investors. Since the 1980s, foreign investors have poured money into the NYC real estate industry, and this trend is still enduring until today. The United States, despite the recent recession in their economy, has an unfailingly strong currency and steady social climate, making it a relatively safe place to harbor property investments.
An article from the Commercial Observer states a few reasons as to why foreign investors prefer to acquire assets in New York:
Why so much interest in New York City real estate from these foreign investors?
Fred Berk, a partner and real estate leader at Friedman LLP, described New York City as “a safe haven.”
David Mond, a managing partner of New York City CPA firm Adelman Katz & Mond, noted: “There’s been an increase because of the uncertainty throughout the world. Off-shore investors want to park their money for the stability of the U.S. economy. People rag on it, but that’s why people want to invest here.”
Other reasons for investing in New York City properties vary.
“Sometimes it’s kids here in the U.S. for school, sometimes it’s just for investment and sometimes it’s a safety net against currency and turmoil in home states,” said Maury Golbert, the chair of Berdon’s Real Estate Services Group.
According to statistics, Asian buyers alone have invested about $175 million on multi-family assets in New York, which is probably caused by governments encouraging citizens to invest in foreign territories. China, the country who tops the list of foreign investors in NYC, has loosened insurance regulations with regard to overseas investment. Most of the time, it is the strict U.S. taxation laws that prove to be a bother for foreign investors, making it a necessity for them to work with professionals who practice property management in NYC.
Despite the many laws regarding income generated from U.S. properties, the New York real estate industry shows no signs of slowing down. Turning a profit from foreign properties by renting it out can be difficult, but property management companies can help bridge the gap between tenants and investors. NYC building management companies, like Blue Harbour Property Management, offer long-term strategies that help out foreign investors handle their profits and ensure the safety and maintenance of the client’s properties.
(Source: NYC Real Estate is Still the Safest Bet for Foreign Investors, November 20, 2014)