contact us if you would like some recommendations. We hope you find the following links helpful.

Loans

• Mortgage Rules are different in the US where you can finance up to 30 years or more.
• Lenders must be licensed in Hawaii, so you can’t use a Canadian lender to finance a Hawaii property. However, you can get a loan such as a second on your home, in Canada and use the money from that loan to make a cash purchase in Hawaii.
• Do you have established good US credit? If so, that could make the lending process go more smoothly.
• Canadians typically need at least 30% down to get a loan.
• Canadians also typically pay ½ to ¾% higher loan rate than standard domestic buyers

Tax Issues

• Non-US citizens are subject to FIRPTA (Foreign Investment in Real Property Tax Act of 1980 http://www.irs.gov/businesses/small/international/article/0,,id=105000,00.html ). The act requires that 10% of the amount realized from the sale to ensure US taxes on the gain are paid.

• HARPTA is sort of the Hawaii state version of FIRPTA. In the case of HARPTA, 5% of the amount realized by a sale

• I’m looking into this further for details, but I understand from Resort Quest and our clients that there is withholding on rental income to assure that US taxes are paid.

• All foreign investors will need a TIN number in the US. If they are not renting out their property they may not need this immediately, however it will be required when they sell the property. Pam Teal of Island Title recommends Canadians get the TIN at the time of purchase.
• There are both Federal and State tax laws in regards to rental properties, for more information visit my tax page.

Currency Conversion

• There are many different rates charged for currency conversion, a small difference can make a big difference if dealing with large amounts of cash. An international buyer will want to shop around or ask an accountant experienced in cross boarder real estate transactions for advise and or referrals.

Property Management

• In the state of Hawaii it is required to have an on island property manager, this is to protect you and the consumer.

Closing/Final signing

• If out of the country at the time of closing you may be required to go to a US Consulate for signing of final documents.

Utilities

If the utilities are to be in the name of the new foreign owner, as opposed to a condo-tel, Maui Electric will require notarized ID’s in order to open an account.

Terms and Definitions

Strata fees = AOAO fees

For more information on the buying process visit the buyers page on this site and click the  "A-Z The Buying Process" tab.

Note: We are not attorney's or accountants, if you need referrals for one please let us know.

Resources

Canadian Residents going Down South.

Great information  for Canadians and Americans, brought to you by; Canada Revenue Agency.