Paul has worked with numerous Canadian buyers. He's available to assist you with the entire process, providing the help and knowledge you need when you buy a home in Palm Springs:
- Residential neighborhood experts- having worked in the Palm Springs market for over a decade, we can help you find the right neighborhood that meets your specific needs.
- Help you with your financing options; providing lender counseling and pre-approvals
- Information regarding property taxes and other particulars associated with owning in the US.
- Property Management and Rental Management information and assistance
LOANS - Right now it is very difficult to obtain foreign national financing. This changes daily as the Lending Rules in the United States are in flux. Please check with Paul for a current list of Broker Resources that are working with Canadian buyers, as well as other financing suggestions.
To receive more information, please click here to contact Paul to start looking for your home in Palm Springs.
- Contact Paul Kaplan, a professional Licensed California Realtor, to help guide you through each step of the purchasing process and to find your Desert Home
- Unless paying cash, get preapproved with a lender for financing the purchase of your property. Loans for Foreign Nationals (Most loan progams require 30% to 50% down for foreign investors.) *(currently it is very difficult to obtain foreign national financing in the US)
- Search for properties. Paul will email you listings that fit your search criteria.
- Prepare and submit an offer for your favorite property. Accompanying each offer will be an average good faith deposit of 3% of the purchase price.If your offer is accepted, Open Escrow to process the transaction.
- Home inspection by licensed professional. You will be given a report itemizing the status of any deffective items discovered about the property. If unacceptable you can either negotiate to have the seller make repairs, or choose to cancel the contract. Inspections cost from $350+ depending on square footage.
- Review title reports, all rules and restrictions, and Homeowner Association information (if applicable) regarding the property. If you do not accept these documents you may cancel the contract within specific time frames.
- Proceed with purchase.
- Sign loan documents
- Close escrow. Get Keys to your new vacation home!
The purchase process typically takes from 45 to 60 days to process. You don't have to be present at the time Escrow closes.
Although negotiable, the average cost of the property will be the price of the property, plus approximately an additional 2% of the price to cover escrow and purchase expenses. Additional costs include the Home Inspection, which will average around $400 to $500 depending on the size of the property. These costs are estimates, but may vary, depending on the type of loan you are getting for the property. (Your lender will give you a Good Faith Estimate that will provide more detailed costs). Additional estimated expenses:
- Property taxes: approximately 1.25% of the purchase price, per year
- Home Owner Fees (if buying a condominimum) Varies per property, but averages around $400/month
- Land Lease Fees (if buying on lease land) Varies per property
- Maintenance Fees - Single Family homes: An average, you can expect to pay approximately $100 -$200/month for landscaping, $100/month for Pool maintenance for a typical 3 bedroom home. (These fees are not applicable if purchasing a condominium)
- Utilities: Gas, Electric, Water, Phone, Trash, Cable: Varies depending on usuage.
Information regarding US Visas
More info:
The strength of foreign currencies against the U.S. dollar has been the "icing on the cake" of California's appeal for Canadian investors.
Palm Springs has been seeing our share of international shoppers seeking a sunny vacation getaway home. According to one well-known international tax expert, buying and owning US real estate is no more complex that purchasing and owning in your own province -- as long as you follow all the income tax rules involved. It's not the properties, but legal and tax differences between the two countries, and variations between states, that add complexity. The solution? David Ingram, Principal of Vancouver-based CEN-TA Services, suggests you search out a Canadian income tax advisor, experienced in dealing with US taxes, before you locate the US property of your dreams. US tax advisors know their own federal and state tax issues, but Ingram says they are rarely familiar with the complexities of Canadian income tax law because, with a population 10 per cent of that in the US, Canada's tax issues are not mainstream knowledge in the US.
"Ask what forms should be used," said Ingram suggesting one way to determine whether an accountant or other tax advisor has hands-on practical experience filing US returns. Ingram is not a chartered accountant, but graduated from the University of British Columbia's Urban Land Economics program and claims 43 years experience with tax, real estate and immigration issues, much of it in the public eye through the media, his books and the Internet. He stresses the importance of settling on a tax advisor early on, but does not believe that the choice of state or property should be based on tax laws since filing rules change each year for federal, state and provincial tax. Whether considering a snowbird vacation condo or accepting a job transfer to the States, cross-border buyers typically seek out professional advice for the actual purchase and move, but ignore tax and estate planning until tax time or a crisis. That after-the-fact approach removes the opportunity for overall estate planning and tax minimization.
Ingram offers these tips and suggestions for Canadian considering US real estate ownership:
Some states, like California and Vermont, have state income tax while others, including Florida and Nevada, do not: "It is irrelevant if you pay state tax or not as it is just a function of [US] federal tax ... ."
Rent out your US real estate and the rental income must be reported on a federal and any state return required. Tax schedules are used to calculate depreciation, an allowable expense on income properties. On Canadian returns, the capital cost allowance schedule covers depreciation.
Marital status and who owns the US property is important, too. If both spouses are on title, then both must file federal and state returns. Failure to file may carry penalties as much as 30 percent of the gross income, with no expenses or deductions allowed.
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.
Province of residence is an issue too. In Ontario, 153 days of residency should qualify you for OHIP, but in other provinces, more than 183 days are necessary for coverage by the provincial health plan.
Canadians paying US tax may claim foreign tax credit federally and provincially.
"I see more clients with successful rental properties in the United States than here in Canada," said Ingram, who finds many clients rent out their US property or buy through a shared program like hotel condos. "When they buy in the United States, they tend to do a better job with their investment. They pay more attention to details. We rarely have someone coming in with a loss in the US."
Researching government resources will also be useful, for example:
If you were born outside Canada after Feb 14, 1977, you may need to take steps to keep your Canadian citizenship;
Keep up to date on changes in US Entry Requirements through the federal Canada Border Services Agency; The Canada Revenue Agency (CRA) taxes your US income, except US lottery or gambling winnings. The CRA includes suggestions in its report "Canadian Residents Going Down South" for Canadians who spend part of the year in the US and still maintain residential ties in Canada.
BOOKS
There are two books you might want to invest in that you can review regarding Snowbirds, one is called The Canadian Snowbird in America by Terry F. Ritchie and the other is The Border Guide – A Guide to Living, Working and Investing Across the Border by Robert Keats. Both are available on Amazon.com.
