Can a Canadian Buy a House in the US?
Can a Canadian buy a house in the US? Many Canadians in the US want to know about the possibility of owning a home in the new country and the entire process. Researching and working with a professional realtor from the US can make purchasing easier.
Canadians can easily buy a house in the US. Most of them prefer the country because homes here are affordable, and there is warmer weather than in Canada. Besides, the US economy is strong, making your investment worth the coins.
As a US newcomer from Canada, consider some factors when buying a house. For example, some locations in the US do not allow foreigners, and you should also consider the prices. Check out the reasons many Canadians buy houses in the US.
Reasons Canadians Buy Homes in the USA
Canadians have different reasons for buying houses in the US. Some prefer the country because of the strong economy, others want to be closer to their families, and other homebuyers want more investment security.
The other reasons Canadians buy homes in the US are:
The real estate prices in Canada are increasing each day, making it harder for the citizens to afford houses. However, buying homes, cottages, and vacation properties in the US is cheaper because the land is cheap.
The climate in Canada is different from that of the US. While it is mostly winter in Canada, the weather in America is usually warmer and suitable for the outdoors. Most Canadians want a home in the US for vacation or to get to a warmer climate during the winter months.
Besides, some Canadian homebuyers that are retirees and want to enjoy outdoor activities may also prefer owning homes in the States where it’s warmer. Others want to retire and move closer to their families, so they buy homes in the US.
A Strong Economy in the US.
The US dollar has great value in the market, making the economy in the US very strong. A strong economy is also an indication of stable house prices, and there is a high expected long-term appreciation.
Having confidence in the country's economy can attract many investors. Real estate also grows, so there are many houses in the US for Canadians to buy.
Every investor wants to put their money in a safe basket to avoid incurring losses and losing their property. The United State's investment security invites many homebuyers to get houses and make the state their home.
Besides, there are many locations where Canadian investors can buy homes and be sure of growth. If you want to rent out your house, ensure you buy in the areas where you can quickly get tenants.
Process of a Canadian Buying Property in the US
Buying a new house can be exciting. However, you need to prepare adequately for the process by setting your budget, getting all the documents required, and researching the purchasing process to make purchasing easier.
As a Canadian ready to own a home in the US, this step-by-step guide will help you.
Decide the Location of Your Home
There are many houses in the USA, located in different areas. Although some areas have restrictions on foreign real estate investors, you can quickly get a home in your area of choice.
When choosing the location of your home, consider some factors like access to public transport if you don't have a car, the churches around, and the schools for your kids. You should also research the best cities to buy a house if you want to rent it out.
Hire a Real Estate Agent Experienced In Foreign Transactions
Buying a house in the US can be tedious and challenging if you do it alone. To make the process easier, hire a realtor experienced in international and foreign transactions to help you through homebuyers' hurdles and mistakes.
The realtors also advise the best places to get home, depending on the type of house you want. Ensure the realtor is qualified and has the CIPS designation. These are well trained and know more about international transactions.
The realtors also know many languages, so ensure you get one you can effortlessly communicate with. They also make it easier to interpret the state's rules about owning a home or buying a house.
Get To Learn Everything about Taxation
The government makes it easy when buying property in the US as a Canadian by ensuring there are no additional taxes. If you want to use the house as a primary residence, you will only pay the property tax.
However, homebuyers getting houses for rent will need to pay an income tax calculated on the net income, but they are fixed. The income tax also applies to homebuyers who sell their houses for a profit.
Start the Home Search Process
Start looking for a good house once you have the realtor ready and have learned about the taxes. The real estate agent could propose some places online or take you to properties they have visited before.
If you are not in the US, the real estate agent can show you the property by taking pictures and videos of potential houses. Ask the agent about the schools, churches, and other essential amenities to ensure the home location meets all your needs.
Make an Offer for the House You Want
Once you have seen the available houses, you can finalize your purchase. Quote the prices you are willing to pay and check the quoted prices by the seller with the realtor's help.
You can also pay more attention to houses whose prices are negotiable. Leave your real estate agent to negotiate on your behalf because they have more expertise. If the seller accepts your offer, the next step is to do a home inspection.
You don't want to buy a too weak or old house, so it’s good to get a professional inspection. Hire an experienced inspector to check for any damages in the house and check if the foundation and walls are still strong.
Most homebuyers don't take this stage seriously and may even skip this step since inspectors charge a fee, but it is crucial. Find a home inspector through your real estate agent as they primarily work with these experts so that you can get a good recommendation.
Sign the Purchase Contract and Complete the Title Report
The last stage of buying property in the US as a Canadian is getting the title report issued after signing the purchase contract that binds you to the transaction. When signing the agreement, the buyer gives their Earnest Money deposit which could be 5-10 percent of the property's cost.
Your real estate agent will then help you get the Title Report updated. This document contains the previous owners of the house and any liens. The seller also ensures they satisfy the liens against the property before selling. A Title Report protects the new owner of the house.
If you have ever wondered, 'can a Canadian buy a house in the US,' the answer is yes. Though there is a long process to getting your new home, working with a realtor makes everything easier.