Posted 3.26.14 @ 8:20
An unfriendly, and unwelcome, message being sent out to snowbirds on both sides of the water may impact your choice to buy a home South of the Border.
Think about it, you’ve spent your entire life dreaming of some warm little home 6 months out of the year - you worked hard, you did all the right things, but a small twist of fate might make it that more attractive to just stay in Canada.
PSCAP is a PITA
The PSCAP, or the Perimeter Security and Competitiveness Action Plan, is a plan that was originally announced back in 2011. The Entry-Exit Initiative will track what you do and where you go between the borders on both sides, all in the name of border security.
After June 30th of this year, both sides of the border will share any information about residents crossing back and forth across the border - up until now, it was up to you to report any time you spent out of the country and what your residence status was.
Falling Loonie Makes the Case
Many of us go south, hoping to find a showcase home for a lot less than we would in Canada - but look at that price tag again, it might not really be that much of a bargain.
With the dollar surging and the American economy on the rebound, some deals just aren’t worth it. Not to mention some of the political turmoil in some of the Sunbelt states (Florida, Arizona and Texas are all facing big problems of their own right now), it may just make more sense to either buy a home in Southern Ontario or to put off buying a home in the US until the Loonie increases in value again.
Understanding Your Rights
The rules could impact you in some of the following ways:
Ontario Resident Status: If you’re away from your home 7 months or more out of the year, you could lose your resident’s status.
Unlawful Presence: If you stay in the U.S. more than 180 days a year, you could end up falling under the “unlawful presence” laws and may be banned from the United States from anywhere of three years to a decade. Even just one day over (for example, on a leap year) could land you in hot water.
Worldwide Income and Estate Taxes: If you spend time in the US (or any other country) for more than 180 days in a rolling calendar year, you could be deemed a resident and subject to estate tax on your property in the US, as well as a tax on worldwide income.
Why buy a home in the States and risk it when you can have a lovely home in one of Canada’s Top 10 Cities? Oakville has all the big city services with the small town charm. From rolling estates to beautiful single family homes, Oakville has it in spades. Give us a call today and see what we can find for you!