Now is presumed to be the best time for Canadians to sell U.S. properties they own.
According to CBC, Diane Olson, an Arizona real estate agent and formerly from Winnipeg, Canada, believes firmly that the timing is perfect for Canadians who have purchased real estate in 2008-2011 in the United States. Olson said, "My clients, when they call me, they're ready to sell. It's just too good of an opportunity to pass up."
Olson added that huge foreign exchange returns and the appreciation in home values in the last five years have given great reasons for Canadian investors to purchase properties in the U.S. To be more specific, Olson gave an example, saying, "The houses that were more around $200,000, they're up. They can sell for anywhere from $275,000 to $350,000. Add to that the Lonnie trading for about 70 cents U.S. and Canadians are making an additional $42,000 on each $100,000 in U.S. property sold."
As exchange rate and appreciation in home values give Canadians considerable amounts of motivation to sell, on the other hand the cost of living in places like Arizona is driving Canadians away. Olson said, "Airfares have gone up.... Golf, for example, everybody used to get great deals. Golf now has gone up significantly."
According to CBC, Canadians are most especially reminded that the sale of their U.S. homes are still subject to tax. Moreover, they can also expect paying some additional Canadian taxes if U.S. tax rates are lower than the applicable tax rate in Canada. With this, Olson said that if you are making money, the government definitely wants to capitalize on that so Canadians should be prepared to pay federal, state and capital gains taxes on property sold in the U.S. under their name. Olson recommends consulting with an expert regarding cross-border to play safe.
