Canadians Buying Property in Florida
Many Canadians own real estate next to Disney World.
To purchase, you must follow the same process as any other foreign buyers wishing to purchase property in the US. It includes getting a tax identification number, opening a U.S bank account, and preparing to pay any associated fees and taxes.
Additionally, Canadians must be aware of any rules and regulations that may differ from those in their home country.
Just like back in Canada looking to purchase real estate property next to Disney; it is essential to consult with a qualified local real estate agent who can guide you through the process and help ensure a smooth transaction and you’ve landed on the website of probably the 2 most experienced Realtors who deal with foreign national buyers and sellers near Disney.
Why Buy a Property next to Disney World?
Disney World is a world destination so owning a home next to the mouse is a dream come true to those who can afford it. Owning a vacation home rental is ideal for the absentee owner who plans on using it whenever they like while offsetting their expenses or making money with little effort. There is a constant inflow of vacationers who love renting pool homes, condos or townhouses just off of Disney Property for less than staying at a hotel room on property, people from all across the globe love coming to the Sunshine State. Florida is famous for its alluring beaches, CoCo beach on the Atlantic Ocean is less than an hour away from Disney while Clear Water beach is 1 hour 20 minutes in the warm waters of the Gulf of Mexico. Canadians are amongst the top foreign buyers of real estate next to Disney 2nd to the UK . Also, Florida in general is the top destination to invest in real estate and what better than to invest in the theme park capital of the World.
a. The Weather
One of the primary reasons Florida is such a great place to live or own a 2nd home is its weather. Many foreign buyers prefer buying a vacation home or other vacation property here, which they also use to generate vacation rentals eventually. In addition, since the state has a tropical climate, and the temperatures are mostly warm throughout the year.
b. Florida has no State Income Taxes
Another great reason to invest in a property next to Disney is that there are no state income taxes. It means you will not have to pay taxes on the money you earn from your investment property, such as income from your vacation property or vacation home.
c. The Real Estate Market is Relatively Stable
The real estate market in Florida is relatively stable compared to other US markets. It is because the market has not been as severely affected by the economic downturn as other markets have been.
So, if you are thinking of investing in real estate next to the mouse, then you should definitely go ahead with it. However, before you zero down on a property from what you see on the internet you should reach out to either Jane or Alan to find out the following.
The Internet is a great starting point to get a feel for the real estate market, that’s it, starting point.
Here are a few things to consider,
One of the most important factors to consider before investing in a vacation home near Disney, it is the property’s location. If you are planning on buying a 2nd home to rent in Orlando understand there are only a few designated areas that allows vacation short term rental legally. You should make sure that the property is located in an approved short term rental neighborhood, this will ensure that you get good rental income legally from the property and not be shut down by local Government forcing you to sell. Jane and Alan know all of the short term rental approved areas, the good ones, the bad ones and even the ugly ones.
Another important factor to consider is the property’s price. You should make sure that you are not overpaying for the property. Jane and Alan have been selling homes next to Disney for over 17 years and they can determine while showing you a property’s fair market value by simply pulling up the latest sales activity in the neighborhood of choice. Market value’s weight comes from recent local neighborhood sales than what is for sale in that neighborhood.
c. Currency Exchange Rate
Being aware of the currency exchange rate is a factor for all foreign national buyers and sellers.
d. Snowbird Regulations
As a Canadian buying property in Florida, you must know about the relevant snowbird regulations before going ahead with any property purchase. Snowbird regulations set down that Canadians without US citizenship or a green card can stay in the US for only up to six months, in a year, and not more than that. However, if they have any of the two, they may continue to stay in the US for longer.
e. Property Taxes
Another thing to keep in mind is that Florida property taxes ranks middle in the country, all property taxes are stated on real estate listings Jane or Alan send out so you will be well informed, tax millage depends on the County the home is purchased in and foreign national 2nd home owners do not get charged more taxes than a US Citizen 2nd home owner.
f. You won’t be taxed twice by both Governments.
Canada and the U.S. have a tax treaty to prevent double taxation for Canadian home investors.
Taxes Paid in the United States
If taxes were deducted from your income, you can claim those taxes as if you paid them to the CRA. Because you have a duty to report all your U.S. income on your Canadian return, the income is deemed taxable as Canadian income. The usually lower U.S. income tax rate could leave you with an amount owing for the difference between the United States and Canadian income tax rates.
g. U.S. Canada Exchange of Your Financial Data
If you think the CRA does not have methods of finding out about U.S. income, think again. If an account held by a Canadian resident is recognized as a ‘reportable’ account by a U.S. financial institution, the information is sent by the financial institution to the IRS, which in turn transmits the information to the CRA. Tax evasion is a criminal offence in Canada and the United States.
Buying property next to Disney as a Canadian is a relatively simple process, but it is essential to choose the right guide, Jane and Alan have over 37 combined years experience selling 2nd homes to foreign national investors and are ready to guide you through the process from start to finish and well after the sale.