Summary of Canadians investing in US
Ive read several discussions here on BP and would like to summarize the learning points from them.
As a canadian buying in the USA
PROs:
Access to a real estate market x 10 that of Canada.
Much better rent to value deals
Potential for better cash flows
Cash flows will be in US dollars
US already has had a correction and Canada is due for one
Larger network
Cons:
- Have to consult a cross border accountant, lawyer and tax specialist which can be pricey(Quoted to be 350-1200$)
- If you buy a property in the US personally without an entity there is a 30% tax u have to pay which can be circumvented by filing US tax and claiming the rental income
- Will probably need to buy an LLC or LLP(im still learning the difference with these two) and dont know what situations would benefit the best for this.
- The exchange rate is bad for Canadians which some people point out if you repatriate the income from US it will be gobbled up by the FX people here in Canada and may benefit CRA and IRS which im also trying to sort out how.
This is the wisdom I have picked up if anyone else has anything else to add or things to comment on please add!
Sharing is caring people lol