Canadian Second Homes: A Perfect Investment For Winter Visitors

Jan. 4, 2012 - PRLog -- Many frequent visitors of the United States invest on Canadian Second Homes for savings and possible investment returns.  Since Canada is generally cold, many of its people are eyeing warm states like California, Florida, Texas, and Arizona for a second property. Canadians are buying for many reasons – it can be for vacation, a place for future retirement, or to be up for rental.

Canadian second homes are abundant in the Arizona state, particularly in Phoenix. Aside from being a popular spot for business and leisure, the city is still on the process of recovery from recession. The number of foreclosed properties led to low rates. With a still weak economy and current price correction, it is a perfect time to invest on real estate.

Knowing The Figures

When planning to purchase a property in another country, one must learn the every detail on getting title, possible loans, tax rules, and renting out guidelines. For Canadians, it is possible to get a loan on a U.S. based property. Although guidelines vary on each bank, it is expected to have a down payment of at least 30%. For more secure financing, opt for a U.S. institution. Individuals can get a loan for Canadian second homes given the fact that they are the ones who will occupy the property and it’s not for rent.

Meanwhile, if you’re planning to put up the property for rent, you have to file a U.S. tax return. Be aware of the tax regulations so you don’t pay taxes twice. There’s a Canada-U.S. Tax treaty prevailing the domestic U.S. and Canadian tax rules so a Canadian having second homes in the U.S. can lower his overall tax bill.

Currency exchange can be expensive. In order to save on money exchange, canvass different stores for the best rates and services. One helpful tip to Canadians – always haggle, especially when exchanging high amounts of dollars.

Buying Guide

Buying a property in another country is costly. Before the actual purchase, it requires frequent trips to the U.S. to see the structure personally and to process the legal documents. This decision will greatly affect your financial condition so you must know the risks involved.

Just like in any property purchase, determine what are your needs and want. This set of preferences will serve as guide in looking for the best Canadian second home. Whether you want a condo or a single house; number of rooms; or property area. Take note of such details so you can tell it to your trusted real estate broker.

Talking about the broker, make sure that you hire a trusted agent who works with a company known for real estates. Choose a full time real estate broker with years of experiences in the field, particularly in Canadian second home transactions, and with lots of connections with different home sellers. Remember that you are putting your trust on this person to look for the ideal home for you.

Know your budget. Let your agent know your budget for the property. Aside from the mortgage, consider the cost of maintenance upon purchase. Your broker can look for the best home at your indicated price range and can haggle for a great deal. You can also check online for properties available and let your agent do the meetings with the owner like inspecting the property and coming up with a payment agreement.

Once you are near in closing the deal, fly to Arizona to personally inspect the property together with your agent and an experienced house inspector.

Maureen Karpinski
Find your Phoenix Arizona Property at http://www.cactuscountryproperty.com/city/phoenix.htm
Posted by Cactus Country Arizona Homes & Properties http://www.cactuscountryproperty.com

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