New York City (NYC), the metropolis that rises at the mouth of the Hudson River, on the Atlantic Ocean, is indisputably the symbol par excellence of the United States of America. It is mainly part of the state of New York, while some municipalities in the metropolitan area belong to New Jersey and Connecticut. The borough of Queens is home to John F. Kennedy International Airport and LaGuardia Airport. Newark Liberty International Airport is the third major airport in the New York metropolitan area and is located in the city of Newark in New Jersey.
The statue of liberty stands in all its magnificence on a small island on the outskirts of New York as if to welcome you to an evocative world of multiple cities within the city.
Manhattan, the beating heart of New York
The island of Manhattan is one of the districts that make up New York, as well as its main vital center, connected to the Brooklyn neighborhood through the suspension bridge of the same name. Inside are the most iconic places of the metropolis and the headquarters of the Wall Street stock exchange in the Financial District neighborhood. Fifth Avenue is the most famous street, an artery lined with luxury shops such as Cartier, the characteristic glass cube of Apple, and some of the most prestigious and fascinating buildings, such as the gothic St. Patrick’s Cathedral or the Empire State Building. The latter, a wonderful skyscraper built according to the canons of art deco, ranks among the highest in the world and allows you to enjoy the spectacular panoramic view of the entire city.
Central Park, a miniature forest among the skyscrapers of the metropolis
In the urban core of Manhattan, between the renowned residential districts of the Upper East Side and the Upper West Side, a real miniature forest, Central Park, extends for more than 340 hectares. Among the skyscrapers of the crowded New York streets, this park represents a green oasis whose attractions are inexhaustible. The landscape consists of numerous tree-lined paths, and gardens decorated with sculptures, lawns, and artificial lakes. It is the ideal place to practice different sports, thanks to the presence of special areas designed to satisfy every need. From the green to practice golf to the Park Drive for cyclists and runners, to the ice rinks, which in the summer are transformed into outdoor swimming pools. Central Park often hosts musical concerts or theatrical performances staged by traveling theater companies, which make the place particularly lively and full of interest for its visitors.
Museum Mile, the way of art
On the Upper East Side, there is a road extending for about 1 km, along which there are some of the most illustrious museums in the world. The Metropolitan Museum of Art boasts an immense exhibition of works of art, which range from sculptures of classical and Egyptian antiquity to Islamic painting, from paintings by European masters of the modern age to works belonging to the native populations of Central America, Africa, and Oceania.
The extraordinary spiral building, shaped like an inverted ziggurat, designed by architect Frank Lloyd Wright, houses the Guggenheim Museum. The latter collects important works of modern and contemporary art, including paintings by Chagall, Modigliani, Picasso, and Kandinsky.
An honorable mention goes to the Museum of Modern Art, better known by the acronym of MoMA, located between the Fith and Sixth Avenue. This museum is among the best known in the world and among its galleries houses an incredible collection of works belonging to the likes of Cézanne, Monet, Van Gogh, and Pollock.
Times Square, the crossroads of the world
Times Square is the most important city intersection in New York, the core of its urban fabric, full of shops, company headquarters, and restaurants of the most varied kinds. Due to its importance, it has been defined as the “crossroads of the world” or “center of the universe”. Its streets reflect the light of the massive digital billboards that dominate the area, called “spectaculars”, which project the main news from the world in real-time as well as the advertisements of the most famous brands.
In the stretch adjacent to Times Square is Broadway Avenue, famous for the over forty theaters in the area named for the Broadway Theater. The most popular shows in the United States have been staged on these stages for decades.
Real estate investments in the Big Apple
The city of New York is one of the most important cities in the world in the field of real estate investments, thanks to a stable, consolidated, and highly dynamic market. Furthermore, from 2020 purchase prices have dropped significantly, as a result of the pandemic.
Buying a property in New York as a source of income through leasing is one of the best ways to invest. The rents are high overall and are therefore able to guarantee significant income. You can count on an annual percentage that can vary from 6% to 12% of the purchase price.
Closing costs are estimated that corresponds to approximately 3% of the purchase price if there is no loan, while with the latter, which constitutes approximately 2% of the loan amount, it is possible to reach 4, 5%. Also included are transfer fees, registration fees, and legal fees.
The winning areas of New York in this sector are mainly concentrated in the Manhattan district, in particular in the Upper East Side, Lower East Side, Harlem, and the Midtown area. In prestigious neighborhoods, property prices reach figures that can range from $ 15,000 / sq m to $ 20,000 / sq m in the most luxurious contexts. In more peripheral areas of the Big Apple, on the other hand, prices of around $ 8,000 / sqm can be found.
The properties most available for rent are located in multi-family buildings, and it is a factor to consider if you intend to invest for the purpose of an income through a lease. Furthermore, this would ensure a certain homogeneity as regards the rates of return.
Buying a property in view of a revaluation for future resale can also be a good investment. One of the advantages to be taken into account concerns the so-called “zoning regulation”. This is a regulatory system for the use of certain properties in certain areas, which undergoing changes can lead to an increase in the value of the property itself. This happens, for example, in the event that an area acquires the opportunity to be converted into a residential area.
Winning management of tax burdens by a foreign buyer
The 1031 exchange offers a significant advantage when selling a property that has been revalued over time. This rule allows you to defer the payment of taxes on capital gains and to purchase another property by taking advantage of the full income obtained from the sale of the previous one. The payment will in fact be postponed at the time of the sale of the property acquired thanks to the profit obtained.
The method proves particularly useful for non-residents. The latter in fact, according to the FIRPTA law, for the sale of a US property, should suffer the provisional withholding of 10% of the gross purchase price by the Internal Revenue Service, so that the payment of the capital gains tax is guaranteed.
Moreover, foreign buyers, by financing their purchases through deposits estimated between 40% and 50%, can avoid the payment of income taxes for the first 10-15 years, as they are expenses deductible from rental income.
A foreign buyer must keep in mind that at the time of death, his or her assets will be taxed by the US government at approximately 45%, so in anticipation of this, it is necessary to arrange for the formation of a Limited Liability Corporation (LLC ) and a Foreign Corporation. These are company formations that can be created in a short time and with little expenditure of money, which allows you to obtain significant savings from a fiscal point of view. It should also be remembered that depreciation on real estate in the United States is calculated over 27 and a half years.