A report in April this year showed that the total housing costs in several Chinese residential areas in New York are among the most expensive in the United States. Despite this, many Chinese individuals are still eagerly buying houses to live in. However, when it comes to investment properties, the presence of numerous “rent warriors” – individuals who take advantage of New York State’s tenant-friendly laws – has made more and more Chinese prospective buyers hesitate.
According to a survey conducted by the financial services company CashNetUSA on housing costs in 1,890 communities across the United States, five neighborhoods in New York City rank among the top 20 most expensive communities in the country. Flushing, with a ratio of “property tax + insurance + property fees” to “principal plus interest” at 64.84%, ranks second in terms of monthly housing costs at $4,951.
The reporter interviewed several residents of Flushing, some homeowners who bought houses to live in and others who are renters but express the desire to own a home if they have the means.
Miss Liu, a homeowner, originally lived in Queens and now resides in Long Island, with a combined monthly cost of five to six thousand dollars.
“Buying a home is definitely worthwhile,” she said, enjoying the freedom of front and backyards and favoring good school districts.
Mr. Cui bought a Co-op in Flushing over a decade ago, which has doubled in value from $200,000 to $400,000. He believes that buying a home is still a better option.
“The management fee is $1,100, whereas renting would cost nearly $2,000, so relatively speaking, I save $1,000 every month,” Mr. Cui mentioned.
He considers the current rise in property taxes as “normal,” stating that with a growing population and high demand, housing prices naturally increase or decrease based on demand and affordability.
Junpeng, a young man, and his father currently rent a house, noting a significant increase in rent from over $1,000 to over $2,000.
“If we had the money, we would definitely want to buy a house,” Junpeng’s father said. “When you own a house, it’s yours, while rented houses will always belong to someone else.”
Concerns Rise Among Prospective Landlords
Yingying Tan, a small landlord in New York City, mentioned that many Chinese prospective landlords considering buying properties to rent are hesitant about purchasing in New York. Some existing property owners are even contemplating selling their homes in New York to buy elsewhere.
“New York City continuously provides free legal assistance to tenants; some tenants, despite having good wages and even driving luxury cars, continue to utilize legal aid, delaying eviction cases in court,” she explained, further emphasizing the difficulties faced by small landlords.
Tan highlighted a common occurrence in New York City, where tenants only pay the first month or two of rent and then refuse to pay under various excuses. Should landlords pursue eviction through court, tenants intentionally delay court proceedings using the free legal aid provided by the government, prolonging their stay in the property. Such situations have left many small landlords in a challenging position.
Tan mentioned that many Chinese small landlords are considering selling their properties due to rent arrears and increasing burdens, with inflation driving up all costs.
Given the circumstances, Tan herself retains one property in New York City while investing in buying properties to rent out in New Jersey.
“We are very wary of such tenants,” she stated. “Small landlords I know would rather leave their properties vacant after reclaiming them than take the risk.”