Canadians and taxes; be on top of it!
If you’re Canadian and are thinking about buying property in our beautiful winter wonderland here in the desert..or anywhere else USA, read this. Still a great investment strategy for your portfolio, but always super wise to consult your tax professional, get the required docs in Canada and USA so you know what to expect!
Buying in the Palm Springs Valley is a dream for many foreigners. Our warm winters are not to be beat. Golfing, hiking, biking, swimming, shopping, dining outside in the middle of winter, strolling the local art galleries, heading out to cabazon for some killer designer shopping..whatever. There is no reason NOT to buy a winter investment home here in the desert, but be smart. Consult your CPA or tax attorney first!
If you’re feeling shaky? The BIG BOYS are buying investment homes in bulk..that should be some comfort!
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In the Palm Springs area and across the U.S., foreign buyers hunting for safe investments have been flocking to the U.S. housing market, attracted by low the prices here.
International clients accounted for $82.5 billion worth of sales during the 12 months ending in March, according to a survey by the National Association of Realtors . Compare that to the $66.4 billion spent over the same period a year earlier.
These foreign purchasers , mostly from Britain, Canada, China, India and Mexico, made up 55% of all international purchasers. The four states of California, Arizona, Florida and Texas – accounted for 51% of the states in which international buyers purchased homes.
Several factors are driving foreign buyers to purchase in the locations they did, including proximity to their home countries, climate and convenience. It seems the East Coast attracted mostly Europeans buyers while the West Coast attracted mostly Asians. Florida has drawn South Americans, Canadians and Europeans.
There are many happy and proud new Canadian homeowners in our Palm Springs area here. I happen to have new Canadian neighbors across the street from my home. They got a great little Santa Fe with western exposure that’s taking some work to get it back into shape. But, they’re happy with their smoking deal and we’re happy to have nice, friendly neighbors who take pride in their home . . . even though they can only be there six months out of the year. It’s a win-win for everyone.
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The Canadians are here..the Canadians are here! That’s what we locals say every Winter now..it’s changed from “The Snowbirds are here..” As a largely Resort Community, we are very happy every winter season when out of towners flock to our warm, winter weather. As a local, I love the slower pace of life, the lesser levels of traffic and the “local” feel to dining and dancing during the hot summers. But..I also LOVE the winter influx of our seasonal friends.
Vancouver, and Calgary, Canada, seem to be sending droves of Buyers to our extremely affordable Valley. The harsh Canadian winters become a distant memory once they step off the plane, and the warm temperatures welcome them to the Palm Springs Valley. With average winter temperatures of approx. 80 degrees and nightly lows of only 40-50 degrees, it’s a perfect place to spent your winter months, vacation, or retire in. Many of us live here year round and I for one, find that my blood is thinner than my Canadian friends! I’ll bundle up in a sweatshirt, but my Canadian clients will be sporting golf shirts or a light cotton tee!
Along with Canadians, who know a deal when they see one, we are seeing a huge increase in International Investors. Buyers from China, Asia, France, England..pretty much everywhere are ending up in the Desert. Our Real Estate Values have never been so good, and with golf, tennis, hiking, equestrian events, dining and dancing..there just isn’t much to miss!
The building mania of 2002-2006 hit our valley hard. We were a perfect storm, with land relatively inexpensive and lots of it, developers saw an opportunity and took it. That means that when the downtown hit..2007-2010, prices fell to 30-50% below the peak. It doesn’t make much sense any more to build a home..even an extremely custom one, when you can buy a resale with ALL the bells and whistles for a lower price/sf than a builder can build it for! What???
If you are waiting for a great time to invest in our Palm Springs Valley real estate, now is it. Luxury homes are selling like crazy and are expected to move even faster during 2012. Why? People that buy Luxury homes are able to buy up to 3x as much house than they can at home..whether it’s Canada or China. Plus..where else to park some money where you can actually enjoy it?
Come on out and visit..you will most likely stay for a long while!
image: photoshelter.com
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