For Our Neighbors to the NorthCanadian Buyers
If you have been watching the market lately, you know that the Canadian dollar stretches further than the American dollar. That is great news for Canadians looking to take advantage of the great real estate prices in the United States. In the market for a vacation home, place to retire or simply want to create additional income from rental properties? The greater Phoenix real estate market is a great place to invest your money!Even though the thought of investing in international real estate may be a bit daunting, don't worry. Finding a real estate professional who is experienced in the local market is the most important and valuable step you need to make. I would like to be that person. I can be your eyes and ears for the properties you are interested in. I will physically visit the property, take pictures and email them to you, interview the seller as well as seller's representative and ask the questions you most want answers to. I can also walk you through the process of purchasing Phoenix real estate, help you find a lender, look for home inspectors, find a warranty company, title company and even property management company if you are looking strictly to invest in a rental property. I can even help you find out about memberships at any one of our fantastic Phoenix area golf courses and find a moving company to fit your needs.A neutral third-party title company handles all property fees payable to the lender that you are responsible for when purchasing a property. That way, there are no attorney fees involved, saving you a bit of money.As a buyer, you will be responsible for the closing costs. These include the home inspection, termite inspection, appraisal fees, escrow fees, recording fees, title insurance, property taxes (typically between 0.8-1.5%, depending on the city) and property insurance. Generally, a good estimate of closing costs is 3% of the purchase price when you finance the property. However, if you deal strictly in cash, these costs can be considerably less. The seller is responsible for the real estate agent's commission. You will also be happy to know that Arizona does not impose a real estate transfer tax.I would highly recommend that you consult with an accountant or lawyer about the Foreign Investment in Real Property Tax Act (FIRPTA). This act places a tax on real estate gains and income from "nonresident aliens" that is equal to that which is applicable to US residents. I am not an expert on international estate and tax planning and neither are most professional advisers. This is why you should seek out expert advice from a professional who is well versed in these matters.For more information on what is available in the Phoenix real estate market, please contact me today. I look forward to helping you attain ownership in international real estate.
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