Frequently Asked Questions

FAQ

ARE THERE ANY RESTRICTIONS ON CANADIAN PROPERTY OWNERSHIP IN CALIFORNIA?

No, there are no specific restrictions on Canadians buying residential, commercial, or agricultural property in California. There are however a number of tax and legal implications you must consider before purchasing real estate in the U.S. Consult with your accountant and a legal professional with cross-border experience to thoroughly understand your financial and legal responsibilities to best protect your investment.

DO I NEED A U.S. SOCIAL SECURITY NUMBER OR INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER TO BUY PROPERTY IN CALIFORNIA?

No, you do not need a U.S. Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to purchase property in California. These numbers are primarily used for tax purposes and are not required for real estate transactions. However, if you plan to rent out your property, an ITIN will be necessary to file a U.S. tax return to report your rental income.

IF I BUY A HOUSE IN THE UNITED STATES, CAN I GET A GREEN CARD?

Owning property in the United States does not make it easier to obtain a Green Card (Permanent Residency Card) or U.S. citizenship. If you’re looking to make the United States your permanent home, you must meet specific criteria outlined in U.S. immigration law. The path to residency is challenging but possible. For more information, speak to an experienced U.S. Immigration Lawyer about your options or visit https://www.uscis.gov/green-card/green-card-eligibility-categories

HOW LONG CAN A CANADIAN STAY IN THE U.S. WITHOUT A VISA?

Canadian citizens can usually stay in the United States for a maximum of 182 days (six months), during a 12-month period, without a visa. This time can occur during one trip or as the sum of several trips.

If you plan to stay longer than six months or plan to engage in activities other than tourism of temporary business activities, you will need to obtain an appropriate visa.

DO I NEED A U.S.-BASED LAWYER TO PURCHASE PROPERTY IN CALIFORNIA?

The short answer is no. The services of a U.S.-based lawyer or a Canadian real estate lawyer are not required to purchase a home in California. The role of a real estate lawyer in a Canadian real estate transaction is for the most part, replaced by an escrow and title company in California. But, while hiring a lawyer is not strictly required, it is strongly recommended. Escrow and title companies cannot provide legal advice. Hiring a U.S.-based lawyer (often called attorneys) will ensure you understand your rights and responsibilities under local and state law, and help you navigate your legal requirements as a property owner in California. Given the potential complexities and financial commitment involved in property ownership, having legal representation provides greater peace of mind.

ARE HOMES IN CALIFORNIA MORE AFFORDABLE THAN HOMES IN FLORIDA?

Canadians are the second-largest buyers of residential property in the United States, with Florida, Arizona and California being our top choices for their warm weather and variety of leisure activities and attractions.

How a Canadian determines where to buy a vacation home typically depends on the region of Canada they live in (Eastern Canadians tend to prefer Florida, while Western Canadians tend to prefer California and Arizona), and where they already have family and friends.

Florida is by far the most popular choice, with more than 50% of all Canadian-owned properties. There are multiple reasons why a Canadian might choose to buy property in Florida, but generally speaking, Florida has a lower cost of living than the more affluent States in the U.S. including California. That said, the difference in affordability depends on the community and type of home purchased. The more exclusive Florida beach communities like Miami, Palm Beach, Naples or Sanibel Island command premium prices, and are considerably more expensive than the national home average. When comparing the Greater Palm Springs Area communities to the beach communities in Florida, there is little difference in the purchase price for a home. In fact, depending on the desert community, the cost for a single-family home is often less expensive.

Florida homeowners pay higher property taxes than California homeowners, but the state tax is lower. Living expenses like food, utilities, transportation, and childcare also tend to be more expensive in California.

WHAT IS THE WEATHER LIKE IN THE GREATER PALM SPRINGS AREA?

Blessed with more than 350 days of sunshine, the Greater Palm Springs Area classic desert climate is hot and dry in the summer with temperatures ranging from 30°C-40°C, and mild and sunny in the winter with highs of 15°C-25°C. Nights in the Valley are significantly cooler, dropping to lows of 10°C-0°C. Rainfall is scarce, averaging only six inches each year, and Santa Ana winds are a constant companion during the spring and summer months.

ARE THERE MANY CANADIANS LIVING IN THE GREATER PALM SPRINGS AREA?

Yes, the Greater Palm Springs Area has a substantial Canadian population, especially during the winter months. 7% of all of the properties in the Valley are owned by Canadians. More and more Canadians are choosing the Coachella Valley as their preferred winter vacation destination and as a strategic investment. This growing Canadian presence has led to the formation of Canadian social clubs and events throughout the area.

HOW MUCH ARE PROPERTY TAXES IN THE COACHELLA VALLEY?

Property taxes in the Coachella Valley, part Riverside County, are capped at 1.25% of the property’s assessed value. However, additional supplemental taxes, and special taxes like Mello Roos or bond measures, can influence a homeowner’s annual tax obligation.

WHAT ARE THE AVERAGE UTILITY COSTS FOR A HOME IN THE GREATER PALM SPRINGS AREA?

Utility costs in the Greater Palm Springs Area vary significantly based on the time of year, property size, utility provider, and of course usage. Living in a desert climate, higher electricity bills in the summer months should be expected as well as above average water bills. To reduce bills, energy efficient windows and doors, proper insulation, and smart thermostats are a must. Investing in solar panels is also a popular choice for California homeowners, helping them offset their energy costs, and in some cases eliminating them completely.

IS BUYING A HOME IN THE GREATER PALM SPRINGS AREA A GOOD INVESTMENT?

Setting aside our partial perspective, let's consider the facts:

You’re a Canadian considering buying a home here! It’s not a unique situation. People from all over the world travel to the Greater Palm Springs Area each year (14.1 million visitors in 2022 alone) to enjoy the exceptional weather and world-class amenities and attractions. The region’s increasing popularity with tourists has led to a strong, consistent demand for rental accommodations, and a rise in foreign homeownership.

Affordability. The cost of living in many Greater Palm Springs communities is lower than neighbouring coastal cities like Los Angeles and San Diego, making it an attractive alternative for California residents and new transplants.

Rental Income. While strict local bylaws and the prevalence of HOA communities make Airbnb and VRBO renting an unrealistic strategy for most homeowners, there is substantial demand for 30+ day rentals in the Greater Palm Springs Area, particularly among the Snowbird community. A shortage of available rental inventory in the Coachella Valley has skyrocketed seasonal rates far above the national average. This vacation destination commands premium prices.

Appreciation. The Greater Palm Springs Area has experienced a steady increase in home prices for the past 15 years. While the majority of Canadian buyers seek to profit from rental income, purchasing real estate in the region is also a solid long-term equity investment.

WHAT ARE THE RENTAL YIELDS LIKE IN THE GREATER PALM SPRINGS AREA?

The Greater Palm Springs Area welcomes millions of tourists and seasonal visitors each year, creating high demand for vacation rentals. This demand coupled with a lack of accommodations, can result in very attractive rental yields for property owners. Vacation rentals in the region often command premium rates, especially during peak season (November to April) and festival weekends. By strategically managing your rental property and optimizing occupancy rates, you can maximize earnings and achieve a strong return on investment.

DOES CALIFORNIA HOMES FOR CANADIANS WORK WITH U.S. CLIENTS?

100%. Whether you're an American, a Canadian, or another foreign national, looking to buy or sell residential property in California, we're here to help to make your real estate journey seamless and stress-free.

CAN YOU HELP ME SELL MY GREATER PALM SPRINGS AREA HOME?

Absolutely! We specialize in helping Canadians navigate the complexities of the California real estate market with confidence, whether you’re buying or selling. With our in-depth understanding of the local real estate market and cross-border expertise, we can provide expert guidance for every real estate need.

WHAT IS THE COST OF LIVING IN THE GREATER PALM SPRINGS AREA COMPARED TO MAJOR CANADIAN CITIES?

In general, the Greater Palm Springs Area offers a slightly lower cost of living compared to Vancouver, Calgary and Toronto. Housing prices, rent, gas, food and other everyday expenses tend to be a little less expensive in the Valley, depending on the city and the time of year. However, due to the diminished exchange rate, Canadians can expect the overall cost of living to be proportionally higher.