The Perfect storm a combination of drastically reduced home prices in the US, and and low interest rate financing options seems to have created the perfect storm for Canadians to get away from the long winters and spend more time in the warm sun!
HERE’S WHAT NUMEROUS CANADIANS ARE TAKING ADVANTAGE OF:
- Historically Low Real Estate Prices
- An Easy and Straightforward Purchase Process
- Reasonable Property Taxes and No GST
- A Variety Of Ways To Structure Ownership For Tax Planning
- No Realtor Fees When You Buy Palm Springs Area Properties
- Canadian Loan Programs
ADVANTAGE #1. HISTORICALLY LOW REAL ESTATE PRICES IN THE PALM SPRINGS MARKET
U.S. real estate prices and prices in the Palm Springs area continue to offer great value when compared to just a few years ago. The buying opportunity here in the desert has likely become a once in a lifetime opportunity for Canadians and Americans alike.
#2. AN EASY AND STRAIGHTFORWARD PURCHASE PROCESS
Investing in a second home here in the Palm Springs area is fairly simple for a Canadian citizen. Our goal is to make the process simple and straightforward for our clients. Sheri Dettman & Associates has personally helped hundreds of Canadian buyers in finding excellent real estate opportunities, be it a home or luxury condo.
Canadian buyers generally don’t need a U.S. Social Security number, just a valid passport. There are a few forms that we will help you complete, but the process overall is straightforward and fairly simple. An attorney is usually not needed in California, since our escrow and title teams are trained to process all the paperwork.
#3. REASONABLE PROPERTY TAXES AND NO GST
Annual property taxes in the Palm Springs area (part of Riverside County) are set at a rate of 1.25% of the appraised value of the property. The new appraised value will be set at your purchase price, even if the previous value was higher. Annual property taxes are divided into two payments and paid semi-annually. If you are purchasing a property via a loan you can request that your lender add the property taxes to your loan amount each month (impounding taxes) with the lender then paying the property taxes for you. There are no GST taxes on real estate transactions or Realtor services.
A few developments in the desert may also add a supplemental tax called Mello-Roos which funds new infrastructure for the communities. Your Realtor can tell you if a property is located in a Mello-Roos area.
#4. A VARIETY OF WAYS TO STRUCTURE OWNERSHIP
Canadian buyers have a choice of how they choose to title ownership to their Palm Springs area property. Cross-border trusts have become popular to help minimize taxes, especially for higher net worth buyers. Some buyers put title in their personal names while others prefer to use existing corporations or LLP’s. In either case you’ll want to contact your chartered account or cross-border tax specialist to advise you prior to completing your purchase.
If you plan to rent your local property, thereby producing U.S. income, you will need to obtain a US Taxpayers Idenification Number (ITIN) from the United States IRS, which can be done online. The ITIN is used for reporting of income purposes only.
Note: The Palm Springs law firm of Sanger & Manes LLPin Palm Springs (760-320-7421), is known to work with Canadian Buyers who reside part-time in the US on US and California tax and estate planning issues.
#5. NO REALTOR FEES FOR YOU AS A BUYER
In the majority of transactions, the home seller pays our service fee. This applies to both resale and new construction homes.
#6. CANADIAN BUYER LOAN PROGRAMS
Mortgages are available here for Canadian buyers. When financing, a buyer will just need to establish a U.S. bank account before submitting an application. The financed property must also be a second home or investment property – not a primary residence. We have several good mortgage company referrals for Canadian buyer loan programs. Please don't hesitate to call for more information, as loan programs are subject to change by lenders. Obtaining A Mortgage In the PalmSpring Area.