In the webinar, “Investing in NYC Real Estate for Global Clients,” Alistar Aunty, Managing Director of Bridgewater International, and Robert Chadwick, CEO of America Mortgages, provided valuable insights into NYC real estate. They discussed the benefits of full-service property management for international investors, strategies to enhance ROI, and NYC’s property market dynamics.
Bridgewater’s investor support, and mortgage options tailored for global clients. For those who couldn’t attend, the recording is now accessible here.
During the session, Alistar Aunty (AA) and Robert Chadwick (RC) addressed a variety of questions, offering informative responses to help global investors make informed decisions in the NYC real estate market. Remarks have been edited for clarity and brevity.
Do you only manage properties in NYC, or do you cover other states as well?
AA: We primarily manage properties in New York, New Jersey, and Florida. We have managed properties in other locations, like Chicago, but our main focus and expertise are in NYC, NJ, and FL.
What is the rental market like in New York
AA: The rental market in NYC is robust, with high demand since about 70% of residents rent. A well-maintained property in a good location will always attract tenants, especially if it has amenities.
What about capital growth?
AA: Historically, NYC has shown steady capital appreciation. Although recent interest rate hikes have kept prices relatively static, we expect capital growth to resume as interest rates decrease. If trends from 1999 to 2019 continue, there should be good appreciation in the coming years.
Would you help in finding tenants for us?
AA: Yes, finding tenants is a key part of our services. The sooner we can secure a well-qualified tenant, the sooner you start earning income and improving your return on investment.
Hi Alistar, how frequently do you conduct routine site visits to the properties you manage?
AA: For newly purchased properties, we conduct several visits during the build phase and a pre-completion inspection. Once occupied, we visit 1–2 times per year, which balances tenant privacy with inspection needs.
Hi Robert, what’s your advice? Should we wait for interest rates to drop, given the potential upcoming rate cut?
RC: I recommend buying now and refinancing later if rates drop, as waiting could mean missing a buyer’s market. Once rates decrease, demand might push prices up.
Thank you for the webinar. I work with high-net-worth individuals and families based in Africa. Can a bespoke New York/international property investment vehicle/company be designed and managed for high-net-worth families? Are there any residence advantages?
RC & AA: Yes, a bespoke investment structure, like a U.S. LLC, can be set up to manage properties for high-net-worth individuals, providing legal and tax benefits, such as estate tax advantages.
What’s the average mortgage rate for foreign buyers?
RC: Foreign buyers typically pay about 1% more than U.S. residents with excellent credit. Current rates for foreign buyers are in the high 6% to mid-7% range.
How do you think interest rates will change moving forward?
RC: Interest rates are expected to decrease, especially with a pro-real-estate administration that may lower rates to stimulate the market.
I’m a U.S. citizen living overseas with little to no U.S. credit. Which mortgage program applies to me?
RC: You would initially qualify as a foreign national. After reestablishing U.S. credit over about two years, you could switch to an expat loan, typically at a slightly better rate.
What is the current 30-year fixed rate?
RC: Rates vary depending on factors like loan-to-value (LTV) and borrower profile. For foreign buyers, rates generally start around 6% and can go higher.
What are the typical exit costs (e.g., capital gains, broker fees)?
RC: Broker fees are typically 2% of the loan amount. The U.S. offers tax benefits like the 1031 exchange, which defers capital gains tax if proceeds are reinvested in a similar or more expensive property.
Is it possible to qualify for a mortgage on an off-plan property before completion?
RC: Yes, we can pre-approve you for off-plan properties, but locking in the rate long-term may be challenging. Given current trends, you might want to avoid locking in as rates are likely to decrease.
If I bought a property but already own in Connecticut, can I buy now (pre-build) and take advantage of the 1031 Exchange when I sell my Connecticut property?
AA: Yes, you can use the 1031 Exchange if you complete the purchase of a new property within 180 days after selling the Connecticut property, and the new property is of equal or higher value.
What rates apply in different scenarios?
RC: Rates depend on factors like LTV and borrower profile. Foreign buyers usually face slightly higher rates and slightly reduced LTV compared to U.S. residents.
I’m a dual citizen living in Australia but own property in the USA. Can I benefit from your services even if I visit the U.S. often?
AA: Yes, we can provide property management and related services even if you frequently visit, as we cater to both U.S.-based and international clients.
Do banks/lenders apply fees and charges for refinancing? If so, approximately how much?
RC: Yes, refinancing involves fees for appraisal, taxes, insurance, escrow, etc. On average, these costs are about 3% of the property’s closing price.
