Frequently Asked Questions
Q. Is Now A Good Time To Buy?
A. There has been and always will be ups and downs in every market whether it be real estate or stocks. Any time real estate appreciates over 9% it is safe to say it is speculative and the inflation is above a natural average progression. Florida prices are adjusting back from crazy record highs. Current sold prices are approximately back to 2002 sold prices- which is any where from 40-60% down from the highs seen in Fall 2005. These drops in prices along with the Loonie reaching a 30 year record high (25% more value) results in a net of a 65-85% price difference. How much lower do you think prime real estate (waterfront in warm climates) in the States or anywhere for that matter will drop? By reviewing basic economics, along with financial analysis of basic time value and leverage of money you can decide if it is a good time to buy.
Q. How Do I Hold Title?
A. To protect your slice of paradise and save or eliminate taxes for your estate it maybe best to take title in the name of a Trust. No matter what the value of your estate is we recommend a comprehensive estate plan which can be done with a Canadian attorney.
Q. How Do I Get My Financing? A. You must obtain your mortgage from a mortgage representative in the USA. If the property is in Florida then a Florida mortgage rep. You will not be able to go through your Canadian branch of RBC or whatever bank you use unless you specifically want to borrow against your assets you hold in Canada to pay for the US property. To avoid a lengthy mortgage apporval process, have your down payment in a U.S account for at least 45 days. This eliminates the fund verification process.
Q. What Is The Minimum Deposit I Need?A. 20% for an investment property and 10% if a second vacation home. Closing costs are typically paid by the seller. Buyers expense ranges from $500 if you don't get a mortgage to 2% of purchase price if you do get a mortgage.
Q. What About Property Taxes? A. Taxes can vary based on region the range is approximately 1.2% - 2% of the property value (usually the sales price initially) Property Insurance ranges from .343% to .85% of purchase price.
Q. Are We Double Taxed Cause We Are Canadians?
A. No. A capital tax gain treaty was signed about 5 years ago to prevent this.
Taxes can vary based on region the range is approximately 1.2% - 2% of the property value (usually the sales price initially)
Q. Can We Get Property Insurance?
A. Yes you can get property insurance for buildings that was built with new building codes since 2001. The price for property insurance ranges from .343% to .85% of purchase price.
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