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Cdnbuyer
Member
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# Posted: 20 Jan 2017 19:49
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Hi everyone. My name is Mark and my wife and i are considering buying property in NY within a few hrs drive of our home in Ontario.
I was wondering if others on this site have done a similar purchase and can offer advice about how they managed their purchase i.e. Did you use a realitor or did you do the transaction yourself? Were Lawyers used and what closing costs can be expected? How do taxes work in the US? How are land taxes assessed?
Does land assessment price shown on tax reports have any bearing on what a real price of the property should be? So many questions.....
I'm sorry for the noob questions, but i would really appreciate advise from others that have experienced this process first hand.
Thanks in advance.
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bushbunkie
Member
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# Posted: 20 Jan 2017 21:14
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All I can add is that I spoke to a friend here in Sarnia last week who purchased a place in Michigan two years ago and he is concerned at the moment with the change in leadership...wondering if his taxes or access to his cabin will be compromised being a Canadian having to cross the border. I guess it's wait and see...
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DaveBell
Moderator
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# Posted: 20 Jan 2017 22:49 - Edited by: DaveBell
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For VA and WV law....
Quoting: Cdnbuyer Did you use a realtor or did you do the transaction yourself?
You can do either. Google FSBO for no agents at all. One agent and you just sign paper that the agent will represent both, if the agent will. They typically will. I used the sellers agent.
Quoting: Cdnbuyer Were Lawyers used
Commercial transactions and other than average transactions may use herds of lawyers. Usual transactions are held at a private Settlement Office which is a lawyer who also represents both.
Quoting: Cdnbuyer what closing costs can be expected
Google Real Estate Closing costs. Also Google HUD-1 form, and land only closing costs. You might be able to find a HUD-1 filled in to see who is paying what. There is a traditional division of costs and either party can also specify conditions on who pays what as part of the deal. Some closing costs cannot be assigned to the other party because of the timeline. My seller paid the agent fee because that was already agreed upon to list the land and represent the seller. I will try to find my settlement doc and post it.
Quoting: Cdnbuyer How do taxes work in the US?
Sales Tax once and recurring property taxes annually. For a home with mortgage, taxes are added to the monthly Mortgage payment. PITI Principal, Interest, Taxes, Insurance (mortgage insurance). For land the county sends you a bill. There is a property tax thread in here on another thread.
(Mortgage insurance PMI is required by lenders for loans above 80%. Down payment was less than 20%. For a mortgage, Once a loan amount reaches below 80% the mortgage insurance can be stopped. But you have to keep an eye on it. Don't keep paying mortgage insurance if it is not required.)
Quoting: Cdnbuyer How are land taxes assessed?
Quoting: Cdnbuyer Does land assessment price shown on tax reports have any bearing on what a real price of the property should be?
No, but everyone uses it as a broad guideline. Mostly previous sales within last six months is what housing asking price is based on, and the seller always starts high as the agent knows to make room to come down. Real estate agents swim in the same cesspool as car dealers.
If you ever buy a house, hire your own certified inspector. (Mike Holmes  We missed Truss Uplift, Cracked Foundation, Stove vent not connected, Termite damage, marginal Attic insulation, lights and outlets on same circuit, Cable TV run too long, Mold, etc. You can see the fee would have been worth it.
There are many variables. I recommend you research on Google New York real estate for the requirements and regulations for the area that your looking. One person's experience may not be exactly the same for your interest.
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Littlecooner
Member
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# Posted: 22 Jan 2017 10:14
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Here is a link to some of the information you are seeking on property taxation. There is a lot of information on this website that should help you understand the steps, reasons and actions needed for your ownership.
https://www.tax.ny.gov/pubs_and_bulls/orpts/tentasmtroll.htm
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Cdnbuyer
Member
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# Posted: 22 Jan 2017 12:50
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Davebell, littlecooner,
Thanks for the information. I really appreciate it.
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rockies
Member
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# Posted: 22 Jan 2017 18:42 - Edited by: rockies
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I would probably wait a few more months until Trump's policies have started to be fully implemented. US citizens should start fleeing the country in droves by then and the prices on abandoned properties will be much lower.
Of course, now that he's removed any climate change information from the White House webpage it probably means that business and industry can now start poisoning the countryside at will. I suspect at that point the US might not be worth living in anymore.
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MtnDon
Member
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# Posted: 22 Jan 2017 19:32
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 mostly agree with the expressed sentiments.
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Littlecooner
Member
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# Posted: 22 Jan 2017 23:12
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Dang crazy liberals are promising to leave but I don't think the will. Canada will not take them and they sure are not moving south. Property values will start to go up as people go back to work. I do wonder if the gun industry will slump into a recession as the worlds greatest gun salesman departed for CA a few days ago.
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TerraLove
Member
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# Posted: 23 Jan 2017 17:35
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Watch out for property tax in NY. Unless someone changed recently, I saw some pretty decent properties in the upstate NY real cheap compared to Ontario, but the tax was, Ouch!
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rockies
Member
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# Posted: 14 Feb 2017 15:30
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I was watching a show called "The Wealthy Life" and they were discussing buying property in the US. The host said that they had an investment analyzer on their website.
http://www.thewealthylife.com/the-learning-centre.htm
Look for the "Investment Property Pre-analyzer" link. You need to sign up to get a password.
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frankpaige
Member
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# Posted: 14 Feb 2017 19:41
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Love learning about cabin construction and gleaning ideas. But, politics, not so much. I would stay on Facebook if I wanted that.
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Salty Craig
Member
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# Posted: 15 Feb 2017 20:32
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Littlecooner
Love ya man. Errr........person
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Jim in NB
Member
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# Posted: 17 Feb 2017 07:28
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Can't offer you any advice on the process of buying but hope you have thought about all the other issues - exchange rate over the life of owning the cottage - there will be good years but likely years that will make it expensive (taxes would be paid in US Funds). There are many other issues as well that I am sure you can think of. One that many don't give appropriate thought to is US Customs. I know of horror stories about Canadians living in the US and being forced to leave and not allowed to come back. And for some real bs, 20+ year old issues. And the border is getting harder and harder. Of course there is the extra time you will spend at crossings too. Tough spot though being in southern Ontario and looking for something affordable that is not a six hour drive or more. Good luck!
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