Buying South of the Border

(August 08, 2012 )

You hear the stories - local Canadians here buying summer / holiday homes south of the border.  We have the geographical location that allows us to consider this option... But is it for everyone?

It's true, thanks to the US economic turmoil of recent years, the property down south in Washington state are significantly cheaper than what we can get over here. 

But make sure you know what it takes to buy a home in the States.  Since most Canadian don't have income, employment, or credit history in the US, you cannot get a mortgage from a US Bank.  Canadian Banks will not give you a mortgage for a US property.  You basically need to buy the home in cash, or use the equity in your Canadian properties to finance the purchase.  This is not an option for most.

Also, think about all the issues you consider when buying a home here.  Do you know the neighbourhoods and areas good enough to make an informed decision?  Or if you are buying an investment property, do you know their market well enough.  You may also want to consult an accountant for any tax implications.

We are not saying don't buy a home south of the border.  Just do your homework, and don't rush down to buy a property just because someone said its a good deal.