Thanks to the weak US dollar, real estate in America has suddenly become less expensive for Canadians. As of the writing of this article 1 USD = 0.97 Canadian dollars. Less than six months ago one American dollar would have bought $1.15 Canadian. It may not sound like a lot of money but in terms of real estate it translates into thousands of dollars.
For example a $200,000 USD American home would have cost $230,000 Canadian six months ago. Now, this same priced home is
How about obtaining home financing you ask? Well, for Canadians, the loan process is very similar to that for Americans. First of all the borrower will need to
In my experience I have found that there are two distinct loan options available. The first option works
Armed with solid Canadian credit the borrower now has access to a wider choice of mortgage loan programs. They can
In the second loan option the lender does not pull Canadian credit and only verifies employment, the
The two program options I describe above are only available for the purchase of a second home. Purchasing a
There has never been a better time for Canadians seeking to purchase a little bit of the US. As any serious Real Estate agent will tell you the Phoenix and Tucson areas are one the best markets in the country. Plus for Canadians its a welcome change in weather, not that this is earth shattering news! There are already a lot of Canadians here in Phoenix – I mean how else can you support a professional ice hockey team in the desert?
Welcome to the Arizona Mortgage Guru blog, a great resource for all your home financing needs. If you're new here and like the content, you can subscribe to my RSS feed to get regular updates on all things related to mortgages. Thanks for visiting.
FHA Streamline Refinance: Is It Still Possible?
First Time Home Buyer Tax Credit
Using the $8,000 Tax Credit to Cover FHA Loan Costs
Related posts brought to you by Yet Another Related Posts Plugin.
on Oct 19th, 2007 at 7:50 am
Nice to see this article Shailesh. I’m Canadian and have been trying to get a Canadian friend to write an article for my blog on this subject from their perspective. From my perspective, as someone who spends a lot of time in Canada, I definitely miss the days when $1 US would get you $1.47 Canadian!!
on Oct 19th, 2007 at 10:36 am
Janet,
Do try to get you Canadian friend to write. I’d be interested to see their perspective on this issue.
on Oct 22nd, 2007 at 4:12 am
[...] dollar for the first time in over three decades. A stronger Canadian dollar offers great opportunities for snowbirds to buy real estate in the Hilton Head Island and Bluffton, South Carolina [...]
on Oct 22nd, 2007 at 8:19 am
[...] head because it struck a chord with me the same way SHAILESH GHIMIRE struck a chord with “Best Time for Canadians to Purchase Real Estate in the US.” I won’t refer to any South Park movies here, rather I’ll say that Shailesh is [...]
on Oct 23rd, 2007 at 5:46 am
Shailesh, We have lots of Canadians that own real estate in the Tampa Bay area and especially near our beaches – this was a vry informative article – thanks, Cyndee Haydon
on Oct 24th, 2007 at 6:37 am
CAN you tell me how much property tax costs in your area. In Canada property taxes are very high for people renting out.
on Oct 24th, 2007 at 7:10 pm
[...] Shailesh Ghimire of AZ Mortgage Guru writes Best Time for Canadians to Purchase Real Estate in the U… [...]
on Oct 24th, 2007 at 9:16 pm
Mark,
I’m not a property manager, however, I believe the State charges 0.5% and then most cities have a sales tax on rents. I’m thinking it runs less than 3% in total. By the way, this sales tax on rents is officially called a “transaction privilege tax.” Anyone, please correct me if I’m wrong.
For homeowners and landlords, the property taxes themselves are crazy low in Arizona and much better than California or Florida.
http://www.howtobuyarizonarealestate.com/frequently-asked-questions/
on Oct 24th, 2007 at 9:49 pm
[...] Shailesh Ghimire of AZ Mortgage Guru writes Best Time for Canadians to Purchase Real Estate in the U… [...]
on Oct 25th, 2007 at 7:41 am
Mark,
To piggyback on John’s comment, I use $1,200 per year for every $180,000 value in property. That is what I use to estimate the monthly taxes before we have a property.
on Oct 25th, 2007 at 4:21 pm
[...] just recieve a commitment from a Canadian company to expand its operations here, but with the fall of the American dollar homes in Phoenix just got a whole lot [...]
on Oct 26th, 2007 at 2:05 pm
[...] just got cheaper for Europeans wishing to buy a second home or investment property. Obtaining a home mortgage for Europeans is similar as that for Canadians. As I did yesterday, I have graphed what a $250,000 home would cost in terms of the Euro. This [...]
on Nov 2nd, 2007 at 8:16 am
Friends of ours purchased real estate in Florida. They wish they had not because their property taxes are three times higher than that of their neighbors. Florida does not like foreigners.
on Nov 5th, 2007 at 3:21 pm
[...] at parity with the US greenback, I’ve been doing some number crunching. I’ve posted on what a 250,000 USD home in Arizona looks to a Canadian. It’s all good news for a Canadian seeking to purchase some Phoenix real [...]
on Nov 18th, 2007 at 4:42 pm
It is true that Florida’s property taxes are relatively high, and that is partly because other taxes are either non-existent or low in Florida. It is not fair to say that Florida does not like foreigners as one post suggested. Because of the Save Our Homes cap on property taxes that favors long time owners of homesteaded residences, it is not just Canadians but new home buyers, people who just arrived from other states and even from other cities in Florida that are harmed.
Fortunately, there is a proposition on the ballot in January which will help fix the mess, and public pressure is such that the Legislature should change it even more markedly in the next year.
Remember, most of Florida is by far the most reliably warm spot in the continental US during the winter. Along with Florida’s beautiful beaches on the Atlantic and on the Gulf in the Tampa Bay area and south to Naples etc., this should continue to attract Canadian! Now indeed is the time to buy.
on Nov 19th, 2007 at 9:17 am
Tony,
Thanks for clarifying the tax issue. I was hoping someone would and you finally did. Your answer makes perfect sense. I hope the person posting the earlier reply comes back to view it.
on Nov 20th, 2007 at 4:59 pm
Could you offer any guidance for a Canadian wishing to buy an investment American property?
Which states would be best?
Best rents?
What about taxes?
What should an investor know about property managers?
What risks would be involved for absentee owners?
on Jan 5th, 2008 at 2:03 pm
I can not comment on the above as I am also a Canadian looking for answers.
What about Capital Gain at the end of the day when you possibly sell your US residential property. Are they going to tax you harder than an American Resident and if so how much? If they are to tax you heavily what would be the point unless it was just to have a vacation place to go?
Who would have knowledge in this? A good International Real estate rep, tax specialist?
on Jan 15th, 2008 at 9:01 pm
I know this post is old, but if you are canadian, and waiting to purchase property in the US… I would wait a bit longer, as prices in the US continue to drop, there will be better deals out there. Don’t rush into anything just because the pictures look good… take a trip down and make sure you are getting local pricing… This is very important!
on May 11th, 2008 at 7:15 am
I recently just completed a trip to Phoenix to look at real estate. Undoubtably your site is designed to capture some financing business. I don’t need any financing. I’m more interested in helping Canadians fufill their dream of owning something in a warmer climate. I’m just releasing a 1/2 ad in Homes and Land on “Phoenix Awaits You” up here in Canada and I’m offering I’ll be offering a free 5 night stay in Phoenix to whoever wants to take a look at real estate there.
I have other advertising avenues that I’ll be hitting along with a web site – I know it probably sound strange but it’s not about the money to me it’s really about trying to help Canadians fufill their dream and capitalize on this fantastic opportunity.