The first and most important piece of advice is to work with a real estate agent. Buying with an agent does not represent an extra cost for the buyer, as the seller pays the commission. That is why choosing the right agent is essential, someone with experience who understands your culture and your language. Buying in New York is a major investment and the process can be complex, especially for foreign buyers. In this guide, we explain how to buy, which costs to consider, and which type of property best suits your needs.
Why Buy an Apartment in New York?
Buying an apartment in New York can serve many different goals. These are some of the most common reasons we have experience with and for which we have helped our clients:
- - Living in the city - Second residence - Real estate investment - Generating rental income - Long-term wealth preservation
First Steps
Often, the hardest part is knowing where to start. At Nieuw Nederlandts, these are the steps we recommend to the clients we work with:
- - Define a maximum budget - Decide the payment method: cash or financing - Define your goal: living or investing - Choose the property type (condo, co-op, etc.) - Select neighborhoods - Legal review - How to approach the offer process - Next steps
Why Is Defining a Budget Important?
Defining a budget helps align expectations and understand your limits. New York is an incredible city with a highly competitive real estate market. Your budget will also determine the type of property and location you can access, allowing you to make realistic and strategic decisions.
Buying with Cash or a Mortgage?
Cash: It is the fastest process, offers greater negotiating power, and requires fewer conditions.
Mortgage: Foreign buyers can access mortgages of up to approximately 70%, depending on their profile. Typical requirements include a 30% down payment, proof of funds, bank statements, and reserves equivalent to 12 months.
Defining Your Goal: Living or Investing
Defining your goal is essential, as it determines whether you should choose a CO-OP, CONDO, townhouse, or multi-family property.
CONDOS and CO-OPs are the most common options. CONDOS are generally the best choice for investment due to their flexibility. CO-OPs are more restrictive but often easier to purchase and are a good option if you plan to live in the property long term.
Condo vs Co-op: Key Differences
CONDO: Individual ownership, greater flexibility for renting, recommended for foreign buyers.
CO-OP: Share ownership, strict rules, and potential rental limitations.
How to Find the Best Apartments in Your Preferred Neighborhood
The market is highly competitive: many properties sell quickly or are never publicly listed. Many listings visible on real estate platforms are not always the most attractive opportunities. Working with an agent gives you access to off-market inventory and significantly improves your chances of success. At Nieuw Nederlandts, we provide guidance, market analysis, and full buyer support without charging buyer fees, as our commission is paid exclusively by the seller. This allows you to make informed decisions on one of the most important investments of your life.
Legal Review
The legal aspect is critical in the buying process. This is where we can identify legal advantages that may allow you to purchase at a better price or improve negotiation terms. We strongly recommend conducting a full due diligence to understand the legal and structural condition of the property, evaluate potential future renovations, and avoid unexpected issues. This process is key to negotiating effectively and ensuring a secure long-term investment.
How to Navigate the Offer Process
- - Having completed due diligence - Having a comparative market analysis of the property
At this stage, both parties sign electronically and a deposit equal to 10% of the purchase price is paid as a reservation. This amount is refundable under certain contingencies, although the process typically continues forward. Next, the building application is submitted for board approval. Required documentation varies depending on whether the purchase is made personally or through an LLC. For foreign buyers, an LLC is often the best option due to its legal and tax advantages.
How Long Does the Process Take?
The search phase can take weeks or months. Once an offer is accepted, the approval, due diligence, and closing process typically takes between 15 and 90 days on average.
Is Buying an Apartment in New York a Good Idea?
Buying an apartment in New York can be an excellent investment when guided by the right expertise. Working with a bilingual agent experienced with international buyers helps simplify the process, avoid costly mistakes, and maximize the value of your investment. If you are considering buying in New York, Nieuw Nederlandts can guide you through every step of the process at no cost to you as a buyer. Contact us today and discover how to buy with confidence, strategy, and peace of mind.