Useful information for my Canadian clients

For the past four years Canadians have been purchasing homes in droves in the desert cities that make up the Coachella Valley.  Of my client base, 75% are Canadians, primarily from the western states of Canada.  One of the many reasons Canadians are investing in a second home or investment property here in the desert is because it is fairly simple for a Canadian citizen to purchase property in the United States.
My goal is to make the purchasing process simple, straightforward and rewarding both in terms of value and long term investment potential for my clients. I regularly assist Canadian clients in finding excellent real estate opportunities, be it a condo, townhome, home or a prime lot for a custom home.

Canadian buyers generally do not need a U.S. Social Security number, unless you plan to rent your local property. You just need your valid passport.  Additionally, there are a few forms that I will help you complete, but the process overall is straightforward and fairly simple. The services of an attorney, while always recommended, are not usually needed, since my team is trained to process all the escrow papers.

There are numerous reasons Canadians are choosing the Desert:

• A strong Canadian Dollar
• The best inventory selection of homes and condos in many years
• Historically low real estate prices in the United States
• A perfect sunbelt location for your dream home away from home
• A strong resort rental market for owners wishing to rent their property
• Phenomenal weather, numerous activities and the cultural attractions

Favorite desert cities are La Quinta, Indian Wells, Rancho Mirage, Palm Desert and Sun City Shadow Hills, especially La Quinta and Sun City Shadow Hills due to utility costs being 35% to 40% lower than the other desert cities.

California Property Taxes
The annual property taxes in Riverside County are set at a rate of 1.25% of the appraised value of the property. The new appraised value will be set at your purchase price, even if the previous value was higher. Annual property taxes are divided into two payments and paid semi-annually. If you are purchasing a property using a loan, you can request that your lender add the property taxes to your loan amount each month (called impounding taxes) with the lender then paying the property taxes for you.

Some communities in the desert may also add a supplemental tax called Mello-Roos which funds new infrastructure for the communities. We can tell you if a property is located in a Mello-Roos area.

Canadian Loan Programs
Mortgages are available for Canadian buyers.  Financing your acquisition might just be a good strategic option during times when the Loonie is lower against the U.S. Dollar.

When financing a property, a buyer will just need to establish a U.S. bank account before submitting their loan application. The financed property must also be a second home or investment property – not a primary residence. I can recommend several excellent mortgage company referrals for Canadian buyer loan programs, so please don't hesitate to call for more information.

These are the most recent and typical loan requirements for Canadian Buyers:

• No U.S. residence required
• 30% to 50% down payment
• Minimum loan amount of US $200,000
• No pre-payment penalty for early payoff
• No social security number required
• No credit scoring – no credit report
• Full documentation
• Second home only (not for a primary residence)

New Home Sales Opportunities
A bit of advice before looking at new communities currently open or under construction; Use a local Realtor and preferably one that offers you an Exclusive Buyer’s Agent Representation Agreement.  This service costs you nothing, but can benefit you greatly. Not only do you gain professional and subjective advice about each community, but by employing the use of the aforementioned agreement, your best interests are protected and not subject to the whims and idiosyncrasies of the builders staff as to pricing and incentives.

Rest assured that I am always current and aware of possible builder incentives and offers made to recent clients to ensure that you receive the best possible price and builder incentives. This is applicable to all price ranges in most all of the desert’s golf communities and gated communities. The only requirement is that I must accompany you to each development on your first visit.