Whether you’re looking to build a hedge against inflation or want to diversify your investments overseas, buying a home in the most buzzing city of warm and sunny Florida is one of the best you have as a Canadian.
Why is Investing in Orlando Housing Market a Good Option for Canadians?
Florida is the number one choice of foreigners looking to invest in real estate in the US.[1] About 20% of all the investment properties that foreign nationals own in the US are in Florida. This is the largest share among all states. California comes next with 16% of investment properties owned by foreign nationals.
And Orlando, being consistently recognized as one of the 10 best cities to invest in rental homes,[2] has emerged as a leading choice of foreign property investors, including Canadians.
The city of Orlando has been experiencing tremendous population and economic growth for the past several years, creating a high demand for rental homes.
These, coupled with the high potential for equity and great ROI opportunity that Orlando’s real estate market offers, make this city one of the foremost choices of foreign investors.
Not to forget the Disney World and Universal Studios that attract millions of tourists to this Floridian city every year, giving investors a great opportunity to generate some extra income through renting (long or short-term).
How to Buy an Investment Home in Orlando from Canada: A Step-by-Step Guide
The idea of buying a property overseas can be overwhelming to many. But it doesn’t have to be. Buying a home in Orlando is simple for Canadians, provided they have the correct information and work with the right group of people. We’re here to help you with both. Here’s a quick step-by-step guide for a Canadian to buy an investment home in Orlando, Florida:
● Get the ITIN Number
The ITIN (Individual Taxpayer Identification Number) is the tax-processing number the IRS issues to people ineligible for the Social Security Number. These include non-residents.
Foreigners looking to invest in US real estate should have an ITIN number. Without it, they won’t be able to open a bank account or secure a home loan or mortgage.
ITIN is also required for non-residents to file tax returns in the US, which you will have to do when you own a property here.
So, when considering buying an investment home in Orlando from Canada (or anywhere for that matter), the first you should do is apply for an ITIN. Consult a Certified Acceptance Agent or a Certified Public Accountant to help you with the process.
● Open a Bank Account
Investing in Orlando (or America) while living in Canada will require quite a few bank transactions. Maintaining a bank account in the US will also help you get a better home loan or mortgage rate.
While you can open an account in any bank, the following three have branches in both the US (including Florida) and Canada:
- Royal Bank of Canada (RBC)
- HSBC
- TD Bank
Having an account in one of these in both countries will make the fun transfer process simpler, easier, and hassle-free.
● Gather Proof of Funds
You can’t buy a property without showing you have enough funds for it. Get the paperwork done before you start setting up meetings with sellers. In fact, your best bet is to gather the proof of funds even before you start hunting for investment properties in Orlando. Considering Florida is the top choice of foreign real estate investors, and Orlando is one of its top cities, you can expect the hot properties to get sold quickly. The seller will not wait for you to prepare your documents when several other potential buyers are ready to close the deal immediately. Buyers who enter the market without proof of funds are also generally not taken seriously by the sellers. So, if you’re serious about buying an investment home in Orlando, do your homework before you get down to hunting homes or setting up meetings with the seller’s agents.
When it comes to the documents you’ll need as proof of funds, your bank statement, a letter from the CPA stating the source of funds, and a mortgage pre-qualification document (or a home loan pre-approval letter) should suffice. Those paying in cash must provide documents confirming they have the full amount.
● Work with a Reliable Local Realtor (Mike Chen Realtor)
You can’t buy a property in a foreign country whose real estate market you may not know much about without a reliable local realtor by your side. And this is where I come in.
With many years oof experience and hundreds of successful deals to our credit, we are your trusted partners in the Orlando’s real estate industry. You can trust us to give you honest advice, guidance, and support through every step of your property-buying journey in this city of theme parks. We cannot just help you find great properties but can also assist you in the whole buying process. This includes helping you find other reliable service providers you may need to buy an investment house in Orlando as a non-resident (foreign national). These include CPAs and lenders. Get in touch with us to discuss your needs.
Buy an Investment House in Orlando to Benefit from Its Booming Market
Buying a house in Orlando while living in Canada may not be the first thing that comes to your mind when you consider investing in real estate. But this is a great option not just to diversify your investment portfolio but also to get some relief from the ever-rising interest rates in Canada. Your Orlando property can be a great asset, a passive income stream, and your retirement home. Even if you wouldn’t want to keep the property with you forever, you can sell it off after some time. Considering Orlando’s booming real estate market, you would still get a good profit.
Why choose Mike Chen as your Real Estate Agent?
There are many factors to consider when you purchase a vacation home, it’s a big investment, and you want to make the right choice for you and your family. A good real-estate investment should make money and that’s exactly what a vacation home in Orlando can do.
When investing in a vacation home in Orlando, Florida, you must ensure you have an effective strategy in place to maximize your bookings and attract guests. Beyond choosing the home itself, there are many considerations that come into play, such as the interior design and functionality – you must consider whether the décor will withstand and attract short-term renters, for example.
We started our vacation rental business in 2017 as newbies in the business. We’ve learned a lot along the way, and we would love to share our experiences with you. (Read our blog here on how we got started as vacation homeowners here: Looking to Buy a Vacation Home Near Disney World? Read Our Story!
We are not just here to make a sale. We are here to help you through the entire journey of becoming vacation homeowners, end to end. By sharing our knowledge and expertise with you, our team will make the process as seamless as possible.
Most importantly, we care about your investment and would love to help you choose the right resort to help your vacation rental business succeed.
[1] https://thecapitolist.com/foreign-real-estate-brings-12-3-billion-to-florida-in-last-year/
[2] https://www.marketwatch.com/story/best-cities-to-invest-in-rental-homes-2011-07-11, https://money.cnn.com/galleries/2011/real_estate/1107/gallery.best_investment_markets/5.html
