Uptick in U.S. real estate sales: What does it mean for Canadian investors?

Sold HouseIn April, the U.S. real estate market reached numbers it hasn’t seen in years. According to Bloomberg, home purchases rose to a 4.61 million annual rate last month. 30 and 15 year fixed mortgages are around 4% and 3%. What we need to look at is why this is happening and how to capitalize on it in the most financially beneficial way.

There will always be ups and downs in U.S. real estate

First of all, I don’t believe that it’s fair to assume that the whole U.S. economy is on the rise because of a statistic on housing sales. That being said, it is true that many areas in the states are seeing buyers lining up again. It’s no secret that this is the biggest opportunity U.S. real estate has ever provided. If you lived in a house you bought for $400,000 and you see it again up for sale at $130,000, you don’t need to be a rocket scientist to realize that now is the time to buy.We are aware that we need to spend money to make money, which is why properly managed U.S. rental properties can prove to be successful investments and sources of supplemental income. If real estate is cheap on single-family homes, investing in U.S. real estate will prove to profit in this diversified economy.

As people’s credits are improving, job stability is starting to settle in, and the American Dream seems within reach once again. Sometimes only certain states show these increases ( like meteor states, where prices go up and down like crazy in little time), so you can’t generalize the health of the U.S. economy with one statistic. That being said, the perfect storm is still in full effect. This indicator is a reminder that there is an ebb and flow to U.S. real estate, and upticks are expected as well as slumps. The good news is the crash is done; Next comes the recovery phase.

Know the rules of the U.S. real estate game before playing

Now comes the seemingly complicated part. How does one buy property in a country they are not a resident of? The U.S taxation process can be overwhelming and it is important to understand your situation before jumping head first into a U.S real estate purchase. That is where our expertise comes in handy.

Steps to success

Spend money to make money

Buying U.S real estate doesn’t need to have immediate tax repercussions but what will effect you is how you choose to purchase it. It is vital to put together a power team that includes a knowledgeable U.S realtor. Using a U.S contractor to handle detail specifics on the property will also add to your power team for purchasing. Ultimately, we want to make the most profit without sacrificing an arm and a leg in taxes, and with the right team you will have no problems doing that. U.S. real estate investing can seem overwhelming and convoluted now, but with the right attitude, knowledge and team on your side, you could be headed to early retirement in no time at all.

Contact us today to find out how you can start investing your money in U.S. real estate.

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