The timing could not be better for a south-of-the-border investment in a vacation rental or second home. With the fall of the U.S. current housing, the price of housing in many areas have fallen lower than they have been for years. Not only have prices fallen, but there are a lot of inventory for potential buyers to choose from. Whether you are looking for a house, condominium or a beach house, the options are there.
In communities of Florida, between Palm Beach and Fort Lauderdale, a two bedroom apartment overlooking the sea can be in the range of $ 300,000. Family houses and condominiums with Gulf access are available in the middle or high $ 200,000 's. Imagine a one-bedroom condominium with a piece of boat for under $ 100,000!
The number of foreclosures, pre-foreclosures, and new home builder has resulted in an oversupply in the market with an enormous availability of housing. In order to unload their investments, builders are offering thousands of dollars in incentives, and in some cases, homes are selling at 2006 prices.
What the lucrative market combined with the high Canadian dollar, this is an ideal time to buy a holiday home. The success of this investment depends on the strength of the area you buy in, however. Choose an area known to be strong and eventually will be returned, such as Texas, Colorado, and Boston.
Before making your purchase do your homework and get a deep understanding of tax laws for the state and the country plans to invest in.
In the case of a couple, may be more advantageous to put the property in a name instead of two. Certain expenses may be discharged, especially if the property is rented.
If investment in the U.S. must file a tax return in both countries. If not, your tenants are required to withhold 30 percent of income taxes. Moreover, you have to pay taxes on profits when the time comes to sell the property. There are certain risks involved in foreign currency financing, if you plan to take on a mortgage for your property.
The most important test of all ensure that in the event of a decline in the Canadian dollar, which can still pay U.S. prices because if the dollar were to fall to 80 cents, your mortgage just increased by 20 percent.
About the Author:
Joe Samson, a Calgary REALTOR who has been helping clients achieve their goals in the Calgary real estate market since the year 2000. If you’d like to know about open houses in Calgary, or to see video open houses, you can view them directly on JoeSamson.com.
Article Source: ArticlesBase.com – Now is the Time to Invest in That Vacation Home
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