Call Us On: 416-429-9060

Florida Closing Cost Summary for Canadians Buying US Real Estate

Florida Closing Cost Summary for Canadians Buying US Real Estate

If you think you are just going to buy Florida real estate with no upfront costs then you are wrong. There are a number of upfront costs that you will have to incur to purchase your Florida real estate.  As a Canadian buying US real estate, you may need to hire an accountant and a lawyer to assist you with some paperwork that is needed.  This costs money.

You may need about 5-15 hours of professional work needed by an accountant or a lawyer and these rates can start at about $200 an hour. The costs start to add up, especially if you are all over the place and are not prepared.

The accountant will help you with all the math about your rental income and expenses but they will also help you with looking at all your assets that you have as a whole and this information can be useful for tax planning, especially when structuring how you will be buying your US real estate.

The lawyer will help with reviewing documents and filing certain paperwork. If the tax strategy gets complicated, a lawyer is often involved to help (with trusts, companies, etc.).

Other costs include paying the Realtor for all the hard work that you make them do and the negotiation you make them do on your behalf.

Home inspection costs is something that you will incur especially if you are not seeing the property yourself, you want to make sure the property is in good shape before you take ownership of it. You want to highlight any issues upfront. Even if you are seeing the property, a home inspection will help you find any issues based on their experience. Additionally, you may want to consider a termite inspection.

Mortgage closing costs is something else to add to the list.  US mortgage costs are higher in the US than Canadian mortgages are, often by 1% more.

Title search fees are other costs that you may need to add to your list. This can be about 1% or more of your mortgage amount.

The best thing to do is to make a list of all the closing costs you will incur and then estimate the amounts so you know the upfront expense before you buy your Florida real estate property.