While most of us think that there is nothing more stable in international investment than U.S. Real Estate, let’s put the disparities in perspective by focusing on the three gorillas in this space.
I would like to focus on three key differences for investing in New York City real estate when compared to cities such as Hong Kong and London. By looking at transfer taxes, type of ownership, and currency risk, we begin to see discrepancies. In addition, it is important to consider that New York City, London and Hong Kong all have slightly different legal systems and transaction processes.
- Transfer taxes
It is very important to be aware of the transfer taxes and other costs of doing business in each market. In London, the transfer taxes for properties are especially high. For example, they can exceed 17% for properties over £1,500,000. Additionally, in Hong Kong, there is 15% transfer taxes for properties plus an additional 15% for foreigners. …