Real Estate Services For Canadians
A Guide For Canadians Buying Property in Greater Phoenix
Phoenix, AZ and its surrounding cities is a popular spot for vacations and business: the city, while still in recovery mode from the recession, is well endowed with characteristics which make is very desirable to visit and live in: and with the weaker economy and heavy correction in prices it has become one of the top destinations for Canadians to purchase real estate.
Canadians are buying for many reasons:
- vacation homes.
- future retirement homes.
- rental income homes.
Any Canadian considering spending their money on real estate in the U.S.A and specifically in Greater Phoenix, AZ needs to have a very good understanding of how the structures and processes differ between the two countries because the consequences of making the wrong choice is never worth the small additional cost to get educated and advised by the appropriate professionals.
We, inPhoenix Realty Group, have put together many articles and points for your review. This is by all means not completely detailed nor comprehensive. Each persons details and needs are different. We simply want you to know what you need to look into then you'll need to speak with those persons and establish the best course of action.
inPhoenix Realty Partners is a local real estate team helping you buy and sell property in Greater Phoenix, AZ. We guide your decisions using comprehensive market intelligence along with our core knowledge of local market conditions, serving your best interests before, during and after the sale.
We're not only Realtors with over 10 years in the business, but we are investors and we've been buyers and sellers in other countries as well.
We've been working with out of the country buyers in many transactions, including Canadian buyers in transactions related to second homes, investments: both residential and multifamily and as seller agents.
- Locating and analyzing properties with your criteria in mind.
- Full transaction management.
- Financing solutions.
- Renting or arranging for management.
- Sale and repositioning of your property.
Buying a U.S. property
You need to know how to take title to the property and the reprecussions of each type of ownership: fee simple, joint with its survivorship, joint as tenants in common, or another legal business entity like an LLC.
Financing a U.S. property
It is possible to get a loan on a U.S. based property by Canadian nationals. Guidelines change, but expect to, at least put down 30% if not more. It is preferable to secure financing with a U.S. institution. It will be easier to get a loan if the home is meant to be occupied by the buyer as a second home vs. an investment property.
Renting out a U.S. property
When you collect rental income from a U.S. based property, you’ll to file a U.S. tax return. Make the decision of what purpose the property will serve before you buy it. The market where you want to have a second home is not always the best rental market: it may be, but it’s better to buy for the intended purpose.
Tax rules on a U.S. property
Changes to the Canada-U.S. Tax treaty prevent foreign owners from paying taxes twice. (http://www.transitionfinancial.com/us/income_taxtreaty.htm) The tax treaty overrides domestic Canadian and U.S. rules and can lower your overall tax bill.
Exchanging money can be costly. Shop around for the best rates and services. There are plenty of places to do it and remember to always haggle. If you don’t ask for a better rate, you won’t get it. When you’re exchanging hundreds of thousands of dollars even small amounts can make a significant difference.
Immigration, custom rules
Know your options. Even though you purchase property here, you’re not entitled to be here like U.S. citizens. There are rules on how long you can legally live in the U.S. and longer stays have different tax implications.
Note: Please consult your financial guides and legal counsel before making any decisions based on what is written here.
Below are examples of three second homes or investment properties purchased by our Canadian clients - read more about this home in the case study.
Canadian's Guide To Buying Properties In Phoenix, AZ
- How Canadians Can Hold Title In The U.S.A
- Important Common Misconceptions About Buying In The U.S
- How To Find A Good Realtor To Help You Buy A Phoenix Property
- How To Find Phoenix Foreclosure Homes For Sale
- Alternative Seller Exit Strategies
- Invest In Real Estate Through Financing
- Back To Main Page - Services For Canadians
Canadian Residents Going Down South - Canada Revenue Agency
Resources For Buyers - including lawyers and CPA's specializing in foreign national transactions in AZ.