One of the most notable signs of the ongoing recession in the US is the fact that the American dollar is now on par with other currencies – like the Canadian dollar. Another sign of the current economic woes is the lingering malaise in the real estate sector, though there are signs of improvement. Canadians are taking advantage of both of these facts, and are buying up real estate across the border in the US. What are the benefits offered here?
One of the most significant benefits for Canadians entering the US real estate market is the fact that they do not have any income tax concerns, so long as the home is used for personal reasons. For instance, if a Canadian family wanted a second home in the US, or a vacation home that would remain empty when the family wasn’t using it, then there are no issues. Once income is generated from the home (through rent or use as an investment), that changes.
Another benefit to Canadian homebuyers eying the American market is the fact that they can take advantage of some of the lowest prices in history, at a time when the Canadian loonie is at its highest point in three years, compared to the American dollar. Simply put, there has not been a better time to own a home across the border in a very long time. Of course, Canadians interested in making this move should ensure that they use the services of an agent who knows their way around across-the-border real estate transactions.