All the talk about the fiscal cliff has been like a hangnail on a fingernail – annoying and stubbornly in the way. With the U.S. House of Congress passing the Budget Agreement late Tuesday night, U.S. real estate investors have all had the chance to breathe a sigh of relief. Despite criticism of the ever-present and looming U.S. government debit, stocks, commodities and some currencies like the Canadian dollar rallied in the wake of the agreement.
For taxation purposes, individuals in the top percentage of income earnings will pay higher taxes, however the agreement will ultimately bolster the U.S. economy and housing markets. For Canadian-based U.S. real estate investors, this is good news as the market continues to stabilize and there is growing confidence in the U.S. economy. What’s more, the Mortgage Debt Forgiveness Act has received a Hail Mary pass to keep up the short sale transactions for 2013! On top of that, capital gains tax for individuals making less than $450,000 will stay at 15%.
So it seems that U.S. real estate will continue to represent a great investment opportunity for savvy (and even just the informed) investor this year. If you are truly serious about making money in U.S. real estate, whether you are looking to buy and sell or set up amazing sunbelt U.S. real estate vacation rentals, save yourself some heartache and be sure to get an expert to help you dot the i’s and cross the t’s though. It’s not all a gravy train out there and while most Canadians are making money, you don’t want to wind up a cautionary tale.
One way to make sure you have actually found a good deal is to do your homework. The U.S. Census Bureau is an amazing resource for Canadian-based U.S. real estate investors to find demographic information right from the comfort of home. You can set up email alerts or get the app on your smart phone to stay connected with the latest research to inform your deals.
Actually, just today the U.S. Census Bureau has expanded their Housing and Urban Development access to information and posted their findings.
Some interesting facts?
Well, the NUMBER ONE reason for movers are reportedly based on ‘convenience to job location’ which is very significant for U.S. real state investors. This means, if you are looking for an area to buy U.S. real estate and you want to be sure that in the long-term the property is marketable, you need to start with the job growth in the region. That way, you can be sure to have a steady stream of interested renters or potential buyers, depending on your desired investment deal.
Alright, so we still have time on short sales, housing flips and a growing interest in the seemingly stabilized U.S. housing market. This is all the right ingredients for success. Keep in mind that you do need to be careful that you are following the rules and procedures! I have made expensive mistakes in my rookie days and I can promise you that the money for expert guidance is worth every red cent you pay. if you need to vet an expert, whether it is a real estate guru, accountant or lawyer, make sure you get someone who actually owns U.S. real estate. Don’t over think the process but do be smart about your choices along the way.