subject: Canadian investing in United States real estate – A wise property investment [print this page] Canadian investing in United States real estate A wise property investment
Investing in real estate is always a wise decision. During the period of recession, there had been a lot of banks that provided easy loans to its customers. There had been schemes where the initial down payment was also not demanded, call the zero-payment loans. But with the financial structure being badly hit and the loss of so many jobs, most people were unable to return the money. Now these properties are once again in the market for lesser amounts as foreclosure sell outs. These properties are being auctioned and this makes a good way of investment.
But why should a Canadian think of investing in the US market? The reason for this is very simple. The Canadian dollar has more value than the US dollar. And this obviously means less investment and great returns. The Canadian real estate investors can take advantage of the turmoil in the US. Because of the inability to return the mortgages and the home loans, most of the property is being sold at a lesser price than it was originally. So this makes a great opportunity for buying property at a great price. Consider you have 100,000$ Canadian. The best property you can afford is in a poor locality with a monthly rent of around 8000$. But the same invested in the US can get you a monthly rent of 20,000$. So, even a small single apartment in the US is much better than property investment in Canada.
There are protests from some section of people who are against these investments. They say they want their money to stay in Canada. But this is silly and this means letting go of a great investment plan. More over your money doesn't go anywhere. Though you own property in the US you pay your taxes to the Canadian government itself. And if there is any such problem why are there so many foreign investors in Canadian real estate? More over your investment is safe from currency market. As it depends on the economy of two countries it can be safely said that the returns will be substantial. Moreover there is opportunity to benefit from both the economies depending on which is doing well.
So when going for an investment in the US real estate here are the steps to be taken. First make sure what you want the property for. Is it for personal use or purely business? Or is it that you are looking at long term benefits? To be more explicit, the property can be used in two ways; either you can plan to move to US and so need to buy a house or you want the property for renting. Depending on the use you should choose the house, the location and the changes and repairs to be made if any. Another alternative is to buy the house, rent it for now and move in after your retirement. Or you can use it as a winter refuge.
The next step in the buying process involves home work. Make sue you know all about the tax laws that apply, both Canadian and American. Make sure they suit your needs and cause you no inconvenience. Even if you fail to make some tax payments due to lack of information you can be penalized. The next thing to do is to search for the best location to make the purchase depending on your needs and your budget. It is always necessary to personally visit before you finalize the deal. The last step involves the mode of payment. But for all legal aspects make sure you have a trustworthy lawyer by your side.
