Yes, anybody can buy a property in the US the same way as US citizens
No. The process of purchasing a property is the same as for an American citizen
Yes. There is some banks in US who can provide you with financing including TD bank , RBC and Desjardins Group.• There is another alternative and that is to finance the home in Canada on your Canadian credit and pay cash for the US property.
Once the property purchase transaction has settled through title insurance company, you will have free and clear title.
Utilities (water, electricity, cable TV, etc.) , Maintenance fee ( HOA) or other community fees if any, Property Insurance , Property Taxes – calculated by the county based on assessed value and county tax rate.
Approximately 2% of purchase price
The best structure will depend on your personal investment goals and circumstances. We subject to consult with professional accountant and authority about any legal and tax advantages of using different company structures. Some investors purchase in their own individual name whilst others choose to invest using a Limited Liability Company (LLC) or incorporation.
Yes, the IRS will tax income from real estate owned by non-resident aliens. Snowbirds, who rent out their real estate located in the U.S., should be aware: a withholding tax of 30% normally applies to the gross amount of any rent paid to a resident of Canada on real estate located in the U.S. Unlike withholding taxes on interest and dividends, this tax is not reduced by the Canada-U.S. tax treaty. One way for Canadians to avoid the 30% gross withholding tax is to file a U.S. tax return and elect to pay tax on net rental income. The Canadian resident can then receive a refund for any taxes withheld; to the extent the withholding amount exceeds the tax payable.
Interested buyers should contact an accountant or attorney for details. We can certainly recommend both.
All rental funds collected by the property manager will be deposited into your nominated US bank account.
Generally it will take 2-4 weeks to buy a property.
No. Commission fee is paid by the Seller.
The lender will require title insurance to protect against any unforeseen claims against the property. Title insurance can also be purchased to protect the buyer as well. The title company will perform a search to insure that clear title can be passed at the closing and will write the required insurance policy.
No. Some of our customers will make a property investment without traveling to Sunshine State. However, we organize viewing trips on a regular basis based on your needs.
USA Market Group has selected well-established and professional property management partners in Florida that we can recommended to our clients but you’re welcome to make your own research and hire any other company as well.
Property Management Fees are typically 10-15 % of the monthly rental income. There is also Finder’s -Fee involved for finding new tenants. Some of our clients successfully find new tenants remotely by themselves via Airbnb , VRBO sites while living in Canada.
It depends on the rental policy and other rules of your property Home Association (if any exist). Some of the Boards not allowed to rent at the first year, while some don’t mind even if you rent on the daily basis. USA Market Group always carefully select the property for you based on your personal and investment goals.
It depends on a lot of factors:
- Is there is any restrictions from Condo Board or Home Association regarding rental policy duration?
- Are you planing to use the property for yourself every year and how long?
- Are you willing to spend extra time sitting at the computer and looking for new tenants on continuing bases?
- What is your investment goals and return on investment expectations?
Usually short term vacation rent gives you 2-2,5 times more ROI then long term rent but requires more time and efforts involved as well. Our company works individually with every client and offers the best solution either you are buying for personal usage or passive income property.
In addition to renting out your property to private tenants, you can also lease your property to Section 8 tenants. If somebody qualifies for the Section 8 government program, a part (or all) of their rent is paid by the state. An advantage of this is that part or all of your rental income is guaranteed as such, as the rent is coming directly from the state of Florida.
• Yes, foreign nationals are subject to U.S. capital gains taxes on real estate sales.
There are special U.S. tax “withholding” requirements when foreign nationals sell real estate.
• If a Canadian sells real estate located in the U.S., a withholding tax of 15% of the
gross sales price is normally payable under FIRPTA (the Foreign Investment in
Real Property Tax Act of 1980).
• There are two exceptions to FIRPTAs 15% withholding requirement which may
reduce or eliminate the requirement.
• Exception 1: Sales price less than U.S. $300,000.
However, the gain on the sale will still be taxable in the U.S., and a U.S. tax return must therefore be filed. Thus, if a Canadian is selling a Florida condo or any other U.S. real estate, for less than U.S. $300,000 to a buyer who intends to occupy it as a principal residence, the seller
will receive the full purchase price rather than having 10% withheld by the buyer
and remitted to the IRS.
• Exception 2: Withholding certificate. The second exception allows for reduced,
or eliminated withholding, where the Canadian obtains a withholding certificate
from the IRS on the basis that the expected U.S. tax liability will be less than 15%
of the sales price. The certificate will indicate what amount of tax should be
withheld by the purchaser rather than the full 15%. A withholding certificate
issued after the transfer of the property may allow the seller to receive an early
refund.
• Interested sellers should contact an accountant or attorney for details.
