The USA real estate market is booming, especially in the most popular areas such as Philadelphia, Pennsylvania. Prices have noticeably soared over the last few years, partly because of continued economic recovery, low-interest rates, and the influx of foreign capital into American property. With so much demand for American real estate, many Canadians are looking to profit from this by buying a home or condo in the US themselves.
Buying a house in the USA is a dream for most Canadians. The US real estate market is one of the most exciting and dynamic markets in the world. The US housing market is unique because of its size, diversity and range of options available. This guide will help you understand how to buy a house in the USA as a Canadian citizen or resident.
Before you start looking for property, there are some things that you need to know about the US real estate market:
Real Estate Agents – In most cases, when buying property in the USA you will need to use a Real Estate Agent (REA). REAs have licensed professionals who have expertise in real estate transactions and can help you find your perfect home. They can also advise on financing options, negotiating with sellers, and other aspects of buying property in the USA. A good REA will work hard to get you the best possible deal on your property purchase!
Home Inspections – In most cases, it’s a good idea to get a home inspection before buying any property in the USA. A home inspector checks out every aspect of your potential new home from top to bottom. They look for any problems with plumbing or electricity systems as well as other potential issues such as mold growth or structural damage.
Know Your Rights as a Foreign Buyer – Foreign buyers have certain rights that domestic buyers don’t have – for example, they have more time to close on their purchase (up to six months) and cannot be forced into foreclosure if they default on their mortgage payments. The same rules apply for all foreign nationals who purchase homes in the U.S., regardless of their country of origin or citizenship status. However, each state has its own rules governing these matters; contact your attorney or real estate agent for more information regarding your state’s laws.
Why do Canadians buy US real estate?
The reasons for buying US real estate are numerous, but the most significant is the fact that the United States is one of the most desirable places to live in the world. For instance, Canada and the US share a common language and culture, making it easy for Canadians to settle into American life. Additionally, many Canadians find that US property ownership provides them with a sense of security and stability in uncertain times.
There are several reasons why Canadians purchase property in the United States:
Lower Prices: In general, US real estate is cheaper than comparable properties in Canada. For example, if you want to buy a house near Boston or New York City, it’s much more expensive than buying one in Toronto or Montreal (even though they may be similar sizes).
Different Rules: In many cases, there are different laws governing how much money you can borrow for a mortgage or what kind of down payment you need to make on a home purchase (if any).
Location: The US has some very popular locations that Canadians love to visit such as Orlando, Las Vegas, Florida and California. These areas provide great vacation destinations for Canadians but also offer a lot of value when it comes to buying a home or condo.
The American Dream: Many Canadians dream about owning a second home in the US because it’s more affordable than most other countries in the world.
Investment Potential: Many people purchase property as an investment because real estate prices tend to increase over time if you buy at the right time and location.
Another reason Canadians buy US real estate is to diversify their portfolio and hedge against currency risk associated with owning Canadian real estate. If you hold all your assets in one currency (such as Canadian dollars), then if that currency loses value against another currency (like U.S dollars) then your assets will be worth less than they used to be worth when converted back into your home country’s currency (in this case U.S dollars). So by owning assets outside your home country’s borders, you can actually increase their value
How much US real estate is purchased by Canadians every year?
A lot of Canadians own property in the United States. In fact, according to the National Association of Realtors, 68 per cent of Canadians who own a vacation home in the U.S. bought their property after 1992 and 82 per cent purchased a second home in the past five years.
In 2016, there were 1,423 Canadian existing home purchases in the US. In 2017, there were 3,926 Canadian existing home purchases in the US. That is an increase of 171% from 2016 to 2017.
In 2018, there have been 5,543 Canadian existing home purchases in the US as of June 30th. This is an increase of 24% from 2017 to 2018.
Canadian Existing Home Purchases by State (2018)
State % Change from 2017 % Change from 2016
Where do Canadian nationals buy property in the US?
The most popular destinations for Canadians buying property in the US include Florida, Arizona and California. The reason is simple; these states offer a wide variety of climates, experiences and lifestyles that appeal to Canadians. In addition, many Canadian families have relatives living in these states so it’s easy to enjoy the company of family members while visiting your property.
Are houses cheaper in the USA than in Canada?
The answer to that question is a resounding yes.
In fact, the average price of a home in Canada is more than double what it costs in the U.S.
According to the National Association of Realtors, the average price of a home in the U.S. is $265,700, compared to $385,000 in Canada.
But there are other factors that play into this equation, as well as differences in what types of homes are being compared. When looking at single-family houses only, the gap narrows considerably – $322,400 vs. $360,300.
This compares with a median family income of $50,502 in the U.S., compared to $65,005 in Canada. A lower average income means that many Americans would need to take out a mortgage if they were trying to buy their own home – and mortgages are more expensive than rent payments.
5 tips for Canadians purchasing rental property in the US:
Buying a rental property in the US can be an excellent way to grow your wealth over time. However, it’s important to know what you’re getting into before you dive in.
Here are 5 tips for Canadians who want to buy investment properties in the US:
1) Purchase a single-family home
2) Get a good agent
3) Understand the tax implications
4) Research local laws and regulations
5) Make sure you have enough money on hand
These are not the most common things that a typical Canadian buyer might inquire about, however if you were about to purchase a house in the USA then it is good to consider all this and more. This guide will have the answers to all the questions you may have.
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