Can Canadians Buy Property in the US?

By Remitbee - May 2, 2022

For real estate investors, it's just a beginner's knowledge that diversifying your properties in different countries is an essential safety tool. But for ordinary citizens, it may seem absurd to buy a house abroad when you're not going to live in it after all.

But yes, everybody needs to know that having properties in different countries when you have the means can protect you from uncertainties– economic collapse, political chaos, natural crisis, and many more.

What if the demand for housing suddenly declined? What if there's been a coup that made your country unstable? These are just a few uncertainties you'd want to protect yourself from.

Can Canadians own properties in the US?

Anyone can own a real estate property in the United States, including Canadians. In fact, more than 19% of foreign investors in the US are Canadians. What's excellent about properties in the USA for Canadians, aside from their stability, is the warmer (thus, more favourable) climate– perfect for residential and leasing.

Another apparent reason Canadians are growing more and more interested in investing in the USA's real estate is the lower housing prices. It's not unknown how Canada has consistently high real estate prices. However, it has become more expensive in recent years.

The neighbour USA would be the number one alternative for that. There's a 500-thousand gap between the price of real estate bought in the US and Canada. Imagine how much you'll save!

As a result, many Canadians prefer to buy a property in the US every year. From 2020 to 2021, there's been 4.2 billion USD worth of existing properties bought by Canadians in the US. And to think that it's just the lowest value for years because of the pandemic restrictions, it's safe to say that real estate is a booming industry in this part of the world.

Why buy a property in the US?

Aside from the pleasant climate, social regulations, and housing crisis in Canada, there are many things to gain by owning a property in your neighbouring country. Here are some of them:

Good Earning Opportunities

This is an excellent idea for people who aren't considering in the US for long. You can earn money by leasing or renting your property– and renting is a thriving source of income there. Many people, especially those just starting in life, prefer renting over buying their own house immediately.

Aside from rentals, you may also opt to sell them in the future when the value rises. Another wise option is to lease your land while waiting for your property's price to appreciate and gain more value and acquire a higher price in the market.

Good Vacation House or Retirement Residence

If you aren't already aware of NAFTA, this joint agreement with the US and Mexico allows all Canadians to have easier access to US property ownership and residence. As a Canadian, you can stay in the US for six months without a visa or US residency papers. Thus, if you travel often, a property in the States is a great stopover. In the future, you may also think of retiring to the US. No one knows, so it's not bad to provide yourself with a cushion in another country.

Tips To Make Your Purchase Easier

It's good news that the US, unlike many other countries, welcomes foreign investors to own a property in the country. However, since it's not your home country, there may be particular things you need to consider.

Consider the laws and regulation

Aside from the limitation set by the federal government, restrictions may vary from state to state. Thus, research the location before buying a house. You may see relatively low prices, not knowing that property taxes take more than you could have spent on other more sustainable properties. Some states ask for too many requirements, thus, giving you more hassle and expenses.

Get a real estate agent

Finding a real estate agent is different when buying from another country. Be sure that you get an expert in international transactions to be sure that you'll get the lowest cost and highest value. Communicate with your agent openly to ensure that you know every move you're taking.

Get all the papers ready

An income tax return, consolidated by your accountant for a US non-resident, is one of the essential papers to carry with you. In the United States, you'll also need to file a tax return and provide identification because you'll be paying property taxes every year. Be sure to get that done by your auditor to avoid problems and hassle in the future.

Send Money From Canada to the US

Sending money from Canada to the US is an important task for many people living in both countries. Whether you are sending money to family members, making an investment, or participating in a business transaction, finding a reliable and cost-effective way of moving your funds is crucial.

One option that many people turn to is Remitbee, an online platform that makes it easy to exchange CAD for US dollars or vice versa. With a user-friendly interface and competitive exchange rates, this service provides an efficient way to transfer your money across borders safely and securely. So if you are looking to send money from Canada to the US or want to exchange your CAD with ease, get your free account today.

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