KAPS Realty offers the following tips for Canadians interested in purchasing property in the U.S:
How will you use your property?
- Is your purchase for investment or vacation home purposes? This will affect where you buy and how you hold the property. Also, understand the options available and what will benefit you in the long run.
- If your purchase is for income purposes, keep in mind that renting your property means added responsibility. Research the possibilities of increased utility usage, property management needs and the vacancy rate in the area to ensure you’re prepared. Investment properties can be subject to taxation in the two countries, so make sure you speak to a taxation specialist which KAPS can help you provide through their cross-border network.
Do you understand the status of the property?
- Understand the terms of the property. For instance, is it labelled as short-sale or on foreclosure?
- The status of the property can have a variety of implications. Be sure to consult a property professional before making any buying decisions. KAPS Realty Group works with professionals specialized in helping Canadians with their U.S. properties.
What to consider when financing the purchase with a U.S. based financial institution?
- It is important to be aware of the differences in mortgage financing and how interest is charged in the U.S.
- The U.S. has both 15 and 30-year fixed rates, unlike the 5-year rates we have here in Canada.
- KAPS Realty Group is partnered with many banks in the U.S. who have special mortgage programs geared towards their Canadian buyers.
How much time will you spend South of the border?
- Consider how many months of the year you’ll be living there so that your purchase reflects your lifestyle.
- Be aware that there are rules regarding the amount of time you can spend in the U.S. before being considered a U.S. resident and subject to paying income tax.
- Consider flights and airlines, if you can fly direct, and the cost.
- Since you are responsible for property maintenance, consider how easily you can access your property from your Canadian home throughout the purchasing process and after acquisition.
- Properties KAPS Realty Represents all have Property Management Options and we are always available to our clients as an additional safety net.