The property acquisition process in the US follows a number of specific rules. In order to complete a successful transaction, it is essential to understand this process and seek the advice of a professional.

Unlike in France, thanks to the way in which the property market is set up, real estate agents can give buyers a detailed vision of all properties for sale in a given area, since property listings are centralized on a single database. As a real estate agent, BARNES has access to most properties available for sale or rent in New York and Miami.

NEW YORK

It is essential to understand the workings of the New York property market before you invest. There are two main types of properties: condominiums (also called “condos”) and cooperatives (commonly referred to as “co-ops”).

• Condominiums are similar to “co-ownerships” in France. Condo owners pay property tax on their own unit, as well as condominium fees to a condominium association for maintenance and repair of the common areas of the building. Condo owners are each allowed to lease, sell or allow family and friends to use their own property. Prospective buyers must submit an application containing information about their finances and background (criminal record, credit history, etc.).

Condominiums are highly sought-after by international investors, but only make up 20 to 30% of housing supply in New York. This explains why condominium prices are often 15 to 20% higher than similar properties located in co-ops.

• Cooperatives or “co-ops”: When you buy a co-op, you are actually buying shares in a corporation. Each owner holds ownership shares and is therefore a shareholder, rather than the owner of their own unit. All decisions that affect the community or the building (new buyer, leasing of a unit, new tenant, sale, etc.) are made by the co-op board of directors. The cooperative pays the mortgage on the building, property taxes, employees’ salaries and maintenance charges. In return, the owner/shareholder pays a percentage of the total expenses in proportion to his/her number of shares in the cooperative. Shares are allocated based on the size and floor level of the apartment. For apartments of similar quality, co-op prices are often lower than condominiums prices, with a much larger supply (co-ops make up 75% of the housing market in New York), higher quality services and more security. Maintenance expenses are also tax deductible. On the other hand, co-ops offer limited flexibility, since approval is required from the co-op board of directors for any new buyer or tenant, with extensive review of all applicants, as well as for renovation work…

• Customized support throughout the acquisition process

Due to the intricate process of buying property in New York, BARNES provides its clients with support every step of the way by recommending outside partners (mortgage brokers, banks, lawyers, international accountants, etc.) and, for co-op purchases, assisting clients with preparing their application and interview down to the smallest details.

Properties are usually sold by brokers who represent the interests of the seller. Commission is generally paid by the seller and then divided between the two representatives. The average time it takes to acquire property in New York is two to three months.

Do not hesitate to get in touch with BARNES New York, where we’ll provide you with essential information you need to know before investing in New York.

Contact : Christophe Bourreau

BARNES NEW YORK, 750 Lexington Avenue 18 th Floor - NY 10022 New york City

Téléphone : +1 (212) 271 6117

Fax : +1 (212) 826 1122

E-mail : newyork@barnes-international.com

Site : http://www.barnes-newyork.com/fr

MIAMI

For over 10 years, BARNES Real Estate has been assisting its French and international clients with their plans to purchase or sell property in and around Miami. Our on-site staff members, who speak French, English and Spanish, assist clients throughout the acquisition process by offering advice and providing them with access to a large network of experts: lawyers specializing in real estate transactions, immigration lawyers, design-build firms, bankers, mortgage brokers, accountants and more.

In addition to property transactions, BARNES Miami offers Rental and Property Management services, acting on behalf of property owners to offer them peace of mind and guaranteed quality management.

• BARNES has access to all properties for sale in and around Miami, including Miami Beach, Coconut Grove, Downtown Miami, Sunny Isles, Brickell, Aventura, Key Biscayne, Fort Lauderdale, Coral Grove and Bal Harbour.

Buyers benefit from a single point of contact and are assisted by a BARNES consultant at each stage of the property acquisition process:

-       Defining the key investment criteria, selecting properties to view and viewing properties,

-       Drafting the offer, negotiating and making counter offers, if necessary,

-       Opening bank accounts (if necessary), recommending a lawyer (mandatory for any real estate transaction), placing a deposit (0.3% of the amount of the offer) into Barnes’s or the lawyer’s escrow account (in case of withdrawal from the sale, this deposit is lost),

-       Negotiating the purchase agreement: the terms of sale are formally set down in the purchase agreement, which is valid indefinitely. These terms are very detailed and include the purchase price, down payment amount, conditions precedent and mortgage terms. The seller may accept the draft purchase agreement or make a counter offer.

-       Paying, within 10 days, 10% of the purchase price into Barnes’s or the lawyer’s escrow account.

-       Signing the deed of sale in the lawyer’s office: the buyer must pay registration fees (1% of the purchase price if bought in cash and 3.5% if bought with a mortgage).

For any additional information (relating to taxes, capital gains or conditions for resale, etc.)

Contact :  Bénédicte Maudet

BARNES MIAMI - 260 Crandon Blvd unit 48B Key Biscayne. FL33149 MIAMI

Tél : 33 1 305 361 22 33

E-mail : info@barnes-miami.com

Site : http://www.barnes-miami.com/fr

Mortgage:

• Taking out a loan with a mortgage in France: the bank can loan up to 100% of the value of the property, which will allow you to leverage the euro’s strength against the dollar.

• Taking out a mortgage is possible in the US with a down payment of 40% of the purchase price. US banks grant mortgages to non-US investors with interest rates of between 5% and 6%. 

When buying in cash, it’s a good idea to make the offer in the name of a limited liability company (LLC). Investors can then deduct depreciation and expenses (interest, plane tickets, car rentals, etc.). This also reduces investors’ rental profits and taxable income. It costs roughly $850 in Miami to have a company set up by a lawyer and $3,500 in New York, where the mandatory registration fees are very high.