Case Study on Buying Real Estate in a Different Country
The talk of most people in Canada for the past while is the dream of buying a house in the state of California to escape from the blistering cold and also to invest in real estate. And the benefit of the strong Canadian dollar incorporated with the throbbing housing market which makes it the best time in the last thirty years. If you are a person who really wants to invest then you will have to know about the basic differences between purchasing a house in Canada and purchasing a house in the state of California.
On the issue regarding the taxes you will have to call the certified public accountant to let them fill you in on the necessary stuff you should know about before you go into this venture. Here are two key issues that maybe different in Canada. In the United States there are 1031 transactions that allow for the capital gains tax to be delayed and then put into another property again and again. But in Canada this practice is not allowed. In the state of California for a primary residence you can right down the property taxes and how much interest is paid on your mortgage.
When it comes to the issue of lending because of the present crisis the terms of lending in the Unites States changes rapidly like every week. So if you are really planning on buying a home in California check with a lender in Canada and also one in the USA to see the option that are available to you.