What A Canadian Needs To Know Before Buying USA Real Estate

Every year many Canadians dream of heading south. The best way to move to another country is by investing in its real estate. The Canadians who that need to know a few things beforehand. First, they should understand the fact that USA real estate is a lot different and complex than the Canadian real estate. Also, the proper understanding of the regulations about the tax and mortgage is equally important. Therefore, before you jump in the real estate USA with your money you should better learn the following things Tax System USA and Canada differ from each other in many ways, and taxation of investment properties is one of these. The property taxes in USA are similar to those in Canada. However, if you are a Canadian and buying a property in USA, you will have to pay much higher “non-resident” property taxes as compared to the locals. Another point of difference is that in USA you can write off the interest charged on your home.

So before you invest any money in the USA real estate, you should find out whether the “non-resident” property taxes are applicable in the state or city, where you are considering to spend or not. Similarly, you have to file two returns, for both rental and selling of the property. It means that you will pay your taxes in USA, however you will have to file the return in both Canada and USA. Lending System Just like the taxes, the rules and regulations in the USA also differ from those in Canada. In USA, you can find hundreds of different banks. Each of these banks has their own separate policies for lending money for property. In some states, no licensing is required at all, while in other the rules vary for who can be a mortgage broker. In USA, the bank regulation is controlled at either state or federal level. However, the overall lending criteria arefar less strict than that in Canada.

Therefore, you can easily get loans in USA. Economic Condition The economic condition in both the countries are also different. Speaking about the ranking, you might all know that USA is ranked number one in the world, while Canada is ranked 9th in the world’s economy ranking. However, when you consider the USA real estate market with the Canadian real estate, you will find that it is different. The Canadian real estate has been doing a lot better than USA for the last five years. Many of the USA states and cities have suffered from the depreciating houses, high unemployment rates and deteriorating consumer’s confidence. All these factors have a negative impact on the USA real estate, and it provides a great opportunity for the Canadian buyers to land their investments in USA. It is the right time to buy property in USA real estate, before the prices hike up again. The people who are buying houses and properties now in USA real estate will have a great opportunity to earn high rate of profits in a few years.