For many years Canadians have found the Coachella Valley to be a sensible escape from the harsh winters in Canada. Although there are no valid statistics available it is widely believed that the snowbird Canadians, represent a population of more than 14%. It is not unusual to hear the “eh” and the Canadian accent at restaurants, golf courses and hiking trails throughout the valley. When the winter nights get cooler the full time US residents see folks in tee shirts and shorts and say “there goes a Canadian”. Our Canadian friends seem to find each other to discuss the latest hockey trade. Our local newspaper has a weekly column devoted to Canadian news. Airlines offer direct flights, so commuting is easy.
An attractive mix of real estate market-related factors and timely U.S. economic conditions continue to create financial opportunity for Canadians wanting to buy. Property taxes are 1.25 percent of the final sales price, with the total divided into 2 payments. Property taxes can be factored into the loan if desired. There are no Goods and Services tax (GST) or Harmonized Sales Tax (HST).
Canadian homebuyers don’t need a US passport. Please remember to work with a licensed Realtor to help you handle forms needed when a property offer is made. If you are purchasing an income property that you plan to lease, you will need a US Taxpayer Identification Number (ITIN) from the US IRS. You will need this number to report income generated from the rental of your property. As a foreign national there is a 10 percent withholding in escrow for a 1-year period, refunded at the end after every part of the transaction is completed. Canadians who rent in Canada may be entitled to a capital gains exemption if they designate their US property as principal residence. This would make any profit earned when the real estate is sold exempt from Canadian, but not US, tax.
Please consult a Certified Public Accountant to discuss your current situation and any issues to look out for during the home buying process.
Canadians Are Taking Advantage Of:
- Low home prices – still down significantly from the real estate explosion years 2004 - 2007.
- The highest level of property inventory since 2012, which includes a wide range of properties in an assortment of price ranges.
- Historically low interest rates – please contact to connect with a local lender.
- No REALTOR® fees - the Seller pays the commission.
- A variety of ways to structure ownership for tax and estate planning.
- Low property taxes – 1.25 % of the cost of the home.
- Strong rental market for property owners desiring to lease their property.
- Steady currency exchange rates with straightforward purchase process.
Please contact us for more information and guidance on buying and selling a home in our lovely valley.
David Portner – Toronto, Ontario
Ross Meredith – Victoria, British Columbia
Chris Hunter – Vancouver, British Columbia