Information For Our Canadian Buyers

The combination of drastically reduced home prices in the US, a strong Canadian Dollar in relation to the US Dollar, and low interest rate financing options seems to have created the perfect storm. And this particular storm offers warm sunny days year-round here in the Palm Springs area. Dreams of sunny days by the pool or daily rounds of golf during the cold Canadian winters are not hard to imagine for most Canadians!

Here’s What Numerous Canadians Are Taking Advantage Of:

• Historically Low Real Estate Prices In The United States
• An Easy and Straightforward Purchase Process
• Reasonable Property Taxes and No GST or HST
• A Variety Of Ways To Structure Ownership For Tax Planning
• No Realtor Fees When You Buy Properties
• Canadian Loan Programs

Historically Low Real Estate Prices In The United States

US real estate prices and prices in the Palm Springs area have been drastically reduced due in part to the combination of bad US policies and the global economic meltdown. The buying opportunity here has likely become a once in a lifetime opportunity for Canadians and Americans alike. Almost every property offered for sale must compete with bank owned properties and today’s buyers are the clear winners.

An Easy and Straightforward Purchase Process

Investing in a second home here in the desert is fairly simple for a Canadian citizen. Our goal is to make the process simple and straightforward for our clients. We regularly assist Canadian buyers in finding excellent real estate opportunities be it a condo or home.

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, since our team is trained to process all the escrow papers.

Reasonable Property Taxes And No GST or HST

Annual property taxes in 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 (called impounding taxes) with the lender then paying the property taxes for you. There are no GST or HST taxes on real estate transactions or Realtor services.

Some communities 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.

A Variety Of Ways To Structure Ownership For Tax Planning

Canadian buyers have a choice of how they choose to title ownership to their 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 U.S. Taxpayer Identification Number (ITIN) from the United States IRS, which can be done online. The ITIN is used for reporting of income purposes only.

No Realtor Fees For Buyers

In the majority of transactions the home seller pays our service fee. This applies to both resale and new construction homes.

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 (loan programs are subject to change by lenders).

• No social security number required for Canadians
• No credit scoring – no credit report
• No U.S. residence required
• 25% down payment
• Full documentation
• No pre-payment penalty for early payoff
• Second home only