Canadian buying a home in California

Asked by Kevin Krammer, Canada, KY Wed Aug 13, 2008

What does a Canadian buying a home in California need to know? Should I set up a corporation to buy the house? How long does it take to set up a corporation? Can I buy the house (cash) and then sell it to the corporation at a later date?

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9
Roswell Moore…, Mortgage Broker Or Lender, Scottsdale, AZ
Sat Aug 21, 2010
Hi Kevin,

Another area to look at for Canadians, is financing your purhase. We offer financing to Foreign Nationals, including Canadians, with no US Social Security number. We do require 30% down and have low 30-year and 15-year fixed rates. We are a Mortgage Bank (a direct lender) who originates, underwrites and funds these loans in 30 days or less.

Feel free to contact me if I can help you with any questions you may have.

Roswell Moore, CMPS
Certified Mortgage Planner
NMLS ID 263779
480-422-5095 direct
Web Reference:  http://www.ezAZloan.com
0 votes
Lori Bowers, Agent, La Quinta, CA
Tue Jan 19, 2010
These are all good answers to this question. The answer changes over time. The value of the dollar, the value of the home, the US and Canadian tax laws, the lending requirements all affect the home purchase. A good real estate broker and/ or real estate attorney, Canadian and US accountants, and lot of internet reasearch as well as actual viewing of the homes an area. It seems now is the time to really invest in property in the US. All signs point to a good investment opportunity for Canadians on all fronts in La Quinta and Palm Springs.
Web Reference:  http://www.loribowers.com
0 votes
Thomas, Home Buyer, Vancouver, WA
Tue Sep 30, 2008
I bought with cash, it was easy and just asked my account how to handle things.
0 votes
Kevin Schmid…, Agent, Santa Barbara, CA
Sat Sep 27, 2008
Kevin,

Good questions...I don't know all the tax issues and would never profess to know these. The best thing to do is to be in touch with an accountant in the area you are looking to buy and then proceed from there. The laws are always changing and it is silly to talk about taxes if you are not an expert in my eyes.

If you have any questions here in the Santa Barbara CA area with real estate, I would be happy to be of help.
Blog: http://www.SantaBarbaraRealEstateVoice.com

If you have any tax questions, I can point you towards my father who has been a CPA for 25 plus year. Mike Schmidtchen 805-963-0881.

Good luck
0 votes
Nancy Hankin, Agent, Palm Desert, CA
Tue Sep 9, 2008
Good Read for Canadians Buying Property in the United States!

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. Any Canadian who is buying property in the US should have these books! There’s lots of good info in them.
Here is an accountant other Canadians have used for their US property. He also has his CPA designation. His name is Darren Millard, LDMB Advisors Inc. email or dmillard@ldmb.com, phone 604 534-3004. One of my Canadian clients from Vancouver gave me his information, as they use him as well.
Almost all my clients these past 12 months are Canadians who are considering buying property in the Palm Springs California area. I even have a few great letters from my Canadian clients on my website. You might want to check this out as well at http://www.PalmSpringsHomesAndEstates.com or click on Testimonials.
I sincerely hope the above information is helpful and will answer any questions or concerns you may have as you take advantage of the strong Canadian dollar while buying
0 votes
Elaine Stewa…, Agent, Palm Desert, CA
Fri Sep 5, 2008
It's best to check with your Accountant on this matter.
0 votes
Paul Kaplan, Agent, Palm Springs, CA
Wed Aug 13, 2008
Good question- According to Commonwealth Title, you can purchase a property in the US under the name of the corporation. YOu indicated you would be paying cash- if you were trying to get financing, it would be extremely difficult to purchase in the name of the corporation.
You will have to deal with some complications when you go to sell the property if it is owned by the Corporation at that time. YOu'll have to supply documentation relating to the corporation, as part of the closing of escrow. I would also talk to you tax advisor in Canada and the US for any tax consequences as well.

Good luck-
Paul Kaplna
http://www.MidCenturyMOdernPS.com
0 votes
Michele M Ma…, Agent, Palm Desert, CA
Wed Aug 13, 2008
Hi Kevin,
You need to check with a Lender here in California, but if I am correct, in California Canadians are not allowed to purchase Real Estate through a Corporation.
You need to put down 25% and do a Residential Loan. Or you can pay cash.
Once you own your own home, I believe you can sell it to your Corporation, but once again you need to check with your Tax Accountant.
If you have any other questions don't hesitate to call me direct!
Michele M Mayer
760-835-5391
mmayer@windermere.com
http://www.MicheleMayer.mywindermere.com
0 votes
Dot Chance, Agent, Burbank, CA
Wed Aug 13, 2008
Setting up a corporation and establishing credit for that corporation will take some time. You would be better off purchasing the home and either selling it to your new corporation or quit-claiming it to the corporation.
Web Reference:  http://www.DotChance.com
0 votes
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