Canada and the U.S. have enjoyed a close relationship for a long time. Because of this special relationship, Canadians enjoy many advantages such as special financing and more. I summarized the financing program below and in the FAQ answered many of the questions my Canadian clients ask.
Before I go further I will answer the key question first, Smarties are available! Click the image below to order them.
Canadian financing of primary residences, vacation homes and investment properties are available. It keeps changing so call me for details. Below is a description of the terms the last time I checked.
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FAQ - PLEASE NOTE: I am not an attorney, accountant, mortgage specialist or immigration law advisor; I am a Realtor in Las Vegas, Nevada. The information below is, to the best of my knowledge, true for Las Vegas; I have no idea whether it applies to other cities or states. If you are considering purchasing Las Vegas investment property, please contact me and I can provide more detailed information on specific properties which I believe to be good investments.
Q: Are the current difficulties in the U.S. financial markets causing problems with obtaining financing?
A: No. Banks and other institutions are in the business of lending money; this is their only business. And, while the names of the some of the major payers have changed, they are still in the lending business.
Q: Is this a good time to buy?
A: Yes!! Check this page for specifics. It is focused on investors but the same applies if you are buying a second home.
Q: Why should I buy investment properties through you?
A: I consistently save my clients money, time and risk through a combination of advanced technology, personal experience gained from owning between 30 and 40 rental properties, and well defined processes. I don't do this alone; there are multiple people on my investment team including a property manager, lender, licensed property inspector and various contractors. Please see this webpage for more on the investment team and the three critical phases for successfully selecting investment properties. Also, consistently finding profitable properties is not an accident; it is the result of a well defined process. Please see this webpage to learn more about the process I follow.
Q: What types of properties do you feel are the best investments?
A: I'd like to qualify my answer to this question first. I believe in longer-term investments: that is, at least 3- to 5-year-hold periods. In my opinion, buying and flipping is simply not feasible in the Las Vegas housing market. Hold periods aside, I would recommend single family homes over condos or townhouses for the following reasons: (1) Condos are priced almost the same as single family homes. (2)The rent-to-purchase price ratio is generally higher for single family homes than it is for condos. (3) The appreciation rate has traditionally been significantly higher for single family homes than condos or townhouses. For a specific profile of what I think is the current "sweet spot" see this page.
Q: What price range do you recommend?
A: Single family homes priced less than $120/SqFt and under $225,000 with 3+ bedrooms and a 2-car garage in very specific locations.
Q: How do I purchase an investment property?
A: Please see this page for the process that I use.
Q: Where can I get property insurance?
A: Most major U.S. insurance companies can provide insurance for U.S. property owned by Canadians. Contact me for a referral.
Q: How do I manage a rental property from Canada?
A: In my opinion, you can't effectively do it yourself. You will want to use a property management service. I can provide a list of several property management companies in Las Vegas; I personally team up with an outstanding Property Manager who plays an active part in the execution of property investment for many of my clients, all of whom have been pleased with the results. The property manager is responsible for the financial management of your property, including repairs and finding the right renters.
Q: I've heard that I can't do any work on my property - is it true that I have to hire everything out?
A: Not true. You can do all the work you want on your own property. What has typically been prohibited is people hiring out their own services to other home owners.
Q: What are the Canadian tax implications of owning US property?
A: I can't speak to consequences involving Canadian taxation. Please seek competent experts in your province.
Q: Are there restrictions on the types and location of properties I can purchase?
A: In general, I know of no ownership restrictions for foreign nationals in the US for residential type properties. Purchasing certain types of commercial properties that are considered strategic to the US may have restrictions..
Q: Can I buy investment properties or only property for personal use?
A: Either. There is financing available for both.
Q: If I can get better financing in Canada. Can I use financing from Canada?
A: Absolutely. There are several cross border banks. For example, RBC Centura is a cross border bank and may be able to provide financing.
Q: I've heard that only US citizens can take advantage of 1031 exchanges.
A: Here is a link to the IRS page that details who can take advantage of 1031 exchanges. Note that there is no mention of US citizens. In my opinion, the US does not differentiate between US citizens and non-US citizens when it comes to property laws. You should note that the tax advantage of a 1031 exchange only applies to your US tax situation; it likely has no benefit to your in-country taxes.
Contact me if you are considering buying or selling Las Vegas real estate. You will be glad you did.
...Eric
Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
Email: EricFernwood@gmail.com
Website: www.EricFernwood.com
Investment Blog: Blog
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Cell: 702-358-8884
Fax: 702-202-2020
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