How to Buy U.S. Real Estate with the Personal Property Purchase System E-Book

Kimberley Marr

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 232

Veröffentlichungsjahr: 2012

Beschreibung

HOW TO BUY U.S. REAL ESTATE WITH THE PERSONAL PROPERTY PURCHASE SYSTEM If you are thinking about buying real estate in the United States, either as a vacation property or an investment opportunity, this book provides you with comprehensive yet easy-to-understand information. Kimberley Marr, a Canadian real estate broker, has teamed up with a group of cross-border legal and tax professionals, mortgage specialists and U.S. real estate brokers each with years of experience. The Personal Property Purchase System outlines processes and considerations when purchasing property in the United States. U.S. destinations, especially in the Sunbelt, are popular choices for Canadians who are looking for a vacation/second property or investment opportunity. Statistics show that Canadians have been among the largest foreign groups of buyers of U.S. real estate. Price, accessibility, strength of the Canadian currency and similarities in culture are the primary reasons. But, you must keep in mind that the U.S. is a different country, with different laws. You need to be aware of these laws and comply with them. How to Buy U.S. Real Estate highlights important considerations in deciding what you want in a U.S. property, in what location and at what price. You will learn about Canadian and U.S. mortgages, titling options, foreclosures and short-sale property, medical and other insurance needs, currency issues, and much more. "Put the Personal Property Purchase System to work for you. It will provide you with valuable information and help you make the decision that is right for your personal or investment strategy." --PAMELA ALEXANDER, CEO RE/MAX Integra Corporation "Kimberley Marr has demonstrated outstanding cross-border knowledge as a real estate broker, and has written a terrific primer that is a must-read for all Canadians looking to buy U.S. real estate." --DAVID ALTRO, Attorney, Managing Partner, Altro & Associates, LLP "A well-written and thoughtful guide to purchasing U.S. real estate. The tools and checklists are so helpful that I plan to use them for my next home purchase." --SUSAN INEZ POSKUS, President, Thomas C. Roberge & Company

Leseprobe

Contents

Cover

Title Page

Copyright

Dedication

A Note to the Reader

Foreword

Chapter 1: The Opportunity

Chapter 2: Creating Your Personal Purchase Plan

Chapter 3: Let's Talk about Mortgages

Canadian versus U.S. Lenders

Open versus Closed Mortgage

Currency Exchange Rate

Term and Amortization

Fixed- versus Adjustable-Rate U.S. Mortgages

Balloon and Interest-Only Mortgage

Mortgage Origination Fee, aka Points

Strategies to Pay off Your Mortgage Faster

Chapter 4: Only in America, You Say?

Nonrecourse Mortgage

The Relationship between Estate Taxes and a Nonrecourse Mortgage

Currency Decisions

Chapter 5: How to Hedge Exposure to Currency Risk

Chapter 6: How to Set Up Your Budget

Cathy and Rob's Mortgage Options

Chapter 7: Key Considerations Regarding Location

Chapter 8: How Long Can You Stay in the U.S.?

Chapter 9: Ownership Options and Estate Planning

The Formula

Titling Options

Chapter 10: Nonresident Estate Planning

Trust (Irrevocable)

Trust (Revocable)

Chapter 11: What You Need to Know about Tax Filings, Gains, and Foreign Tax Credits

Flat Tax, or Trade or Business Tax

Canadian Tax Filing

Sale of U.S. Real Estate

Chapter 12: You're Prepared and Ready to Buy: Now What?

Chapter 13: How to Buy Distressed Real Estate

The Foreclosure Process

REO Purchase

Short Sale Purchase

Chapter 14: Medical Insurance

Policy Choices and Limitations

Coverage Limitations and Deductibles

Health Questionnaire and Pre-Existing Conditions

Read the Fine Print: Credit Cards

Chapter 15: Renting Your Property

Interview Questions for a Property Manager

Epilogue

Appendix

Executing Your Purchase Plan

Acknowledgements

About the Author

Index

Copyright © 2012 by Kimberley Marr

All rights reserved. No part of this work covered by the copyright herein may be reproduced or used in any form or by any means—graphic, electronic or mechanical—without the prior written permission of the publisher. Any request for photocopying, recording, taping or information storage and retrieval systems of any part of this book shall be directed in writing to the Canadian Copyright Licensing Agency (Access Copyright). For an Access Copyright license, visit www.accesscopyright.ca or call toll free 1-800-893-5777.

RE/MAX® is a registered service mark of RE/MAX International and ABR® is a registered trademark of the Real Estate Buyer's Agent Council (REBAC®), which is a wholly owned subsidiary of the National Association of REALTORS®.

Care has been taken to trace ownership of copyright material contained in this book. The publisher will gladly receive any information that will enable them to rectify any reference or credit line in subsequent editions.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Charts and some information repurposed for this book appeared in Your First Home: A Buyer's Kit – For Condos and Houses! (Self-Counsel Press, 2012).

Library and Archives Canada Cataloguing in Publication Data

Marr, Kimberley, 1964-

How to buy U.S. real estate with the personal property purchase system : a Canadian guide / Kimberley Marr.

Includes index.

Issued also in electronic formats.

ISBN 978-1-118-29681-3

1. House buying—United States. 2. Home ownership—United States.

3. Investments, Canadian—United States. 4. Real estate investment—United States. I. Title.

HD255.M37 2012     333.33'830973     C2011-908111-3

ePDF: 978-1-118-30017-6; Mobi: 978-1-118-30022-0; ePub: 978-1-118-30024-4

Production Credits

Cover design: Adrian So

Typesetting: Thomson Digital

Cover image: Thinkstock

Author photo: Scott Cook, Scott Cook Photography

Editorial Credits

Executive editor: Don Loney

Managing editor: Alison Maclean

Production editor: Jeremy Hanson-Finger

John Wiley & Sons Canada, Ltd.

6045 Freemont Blvd.

Mississauga, Ontario

L5R 4J3

To my amazing Mom & Dad, with all my love and gratitude. You always encouraged me to follow my dreams.

To my dear friend Dollina, who passed away during the time I wrote this book. Your courage, grace, and optimistic outlook are unforgettable. I will miss you.

A Note to the Reader

All examples of costs, fees, formulas, and expenses are for example purposes and may not represent actual real costs, formulas, or fees. Formulas, fees, and costs are subject to change and may vary from state to state and/or country to country. Consult with an experienced professional for assistance and advice.

Laws are constantly changing and may vary between countries, states, provinces, territories, cities, counties, and municipalities. The author, the publisher, and the vendor of this book are not engaged in rendering legal, tax, accounting, or other professional advice, and make no representations or warranties regarding the outcome or the use to which the information in this book is put and are not assuming any liability for any claims, losses, damages, or risk. Scenarios and characters described in this publication are fictitious. The names of characters and places were chosen at random.

While the author and publisher have used their best efforts in preparing this book, they make no warranties or representations with respect to the completeness of accuracy of the content of the book, and the opinions and ideas stated herein are not guaranteed or warranted to produce any particular results, and the strategies herein may not be suitable for every individual. The reader should not rely on the author or the publisher of this book for any professional advice. Readers should consult with qualified tax, legal, and other professionals for specific, personalized service and advice relevant to their own individual situation.

Foreword

Over the past five years, residential property prices in the United States have fallen significantly—in some places by as much as 50 per cent. America is on sale, and the value one can realize by investing in U.S. real estate, compared to other countries around the world, is extraordinary. Whether purchasing a property for personal use or as an investment, selection has never been better and interest rates are at an all-time low.

For the enthusiastic but inexperienced buyer, the process of purchasing property outside of one's country of residence can seem daunting and complicated. I'm happy to say that at long last we have an excellent guide that will help both the novice and experienced buyer. It explains the buying process clearly and concisely in language that is easy to understand.

How to Buy U.S. Real Estate points out the potential pitfalls one should avoid, the cautions one should take, and the incredible opportunity at the doorstep of Canadians. As you reflect on what your next investment will be—seeking a place in the sun or thinking ahead to a permanent vacation or retirement property that you can call your own—this information-packed guide will provide you with deep insight to help you make your purchase decision a wise one.

Personally, over the past seven years, I have purchased two properties in the United States and I wish I could have had this book at my disposal. Even though I am an expert in the real estate industry, I faced many complicated issues that took time and effort to solve. Information is everything, and had this book been available it would have made my experience so much easier.

I made these investments because I believe in the value of real estate and I especially believe in the unique opportunity that exists right now in the United States. My decisions were based on value, investment, future retirement, and the opportunity for long-term appreciation. Put the Personal Property Purchase System to work for you; it will provide you with invaluable information and help you make the decision that is right for your personal or investment strategy. Enjoy the book—I certainly did.

Pamela Alexander,CEO RE/MAX® Integra Corporation

Chapter 1

The Opportunity

Why Do You Want to Buy U.S. Real Estate?

Rob, Cathy, and their son Andrew were carpooling with Terry and her son Michael to the boys' playoff hockey game at the Icedome in north Toronto. The boys—both forwards on the Blackhawks team—were busy in the backseat reviewing, in between Game Boy victories, the break-out strategies their hockey team had practiced the previous evening. The morning was frosty, and the parents were talking about the long, cold winter, the fact that the playoffs marked the end of another busy hockey season, and how they were looking forward to the warmer spring weather that was fast approaching.

This time of year was especially busy for Terry, a real estate broker, and Rob and Cathy were getting used to the nonstop calls Terry was taking on her cell phone. They didn't want to appear nosy, but their curiosity was piqued as they overheard Terry speaking about the state of the housing market in the U.S., foreclosures, mortgages—and warm weather.