1. Canada & America Real Estate
Presented by
Sajad Ahmed & Dr. Naveed Siddiqui
www.sajadahmed.com
Disclaimer:
All Information is for educational purpose only
www.sajadahmed.com
2. Quebec
Ontario
Saskatchewan
Alberta
ⶠRoughly the same size As U.S. (3.8 million square miles), but only
has 1/10 the people (34.6 million). It's 3 times the size of Mexico,
with 1/3 the people.
ⶠCanada is sparsely populated: Climate in northern 1/2 cold
frozen for most of the year.
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British Columbia
ï± Manitoba
3. Facts About Canada
ⶠUS & Canada shares longest border in the world
ⶠPopulation over 40 million
â¶90% of Canadians live within 160 kilometres
or 100 miles 0f U.S. border
ⶠMain business province is Ontario
ⶠLargest resource province is Alberta
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4. Canada`s Exports
ⶠ3/4 of exports go to U.S.
ⶠTrade with U.S. & Mexico has tripled since 1994 due to
North American Free TradeAgreement (NAFTA).
ⶠOil
ⶠMotor vehicles and parts
ⶠIndustrial machinery
ⶠAircrafts
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5. Canada's Exports
ⶠCanada is U.S. largest supplier of energy (i.e. oil, gas,
uranium, & electric power) (Source: "Canada's Economy," CIA
World Facebook.)
ⶠCanada profited with the discovery of oil sands in Alberta.
Canada: 3rd largest oil reserves in the world behind only
Saudi Arabia and Venezuela: ranks 9th in the world in
recoverable shale oil and 5th in shale gas (Source: U.S.
Energy InformationAdministration).
ⶠCanada: 11th largest oil exporter, recently surpassing Mexico.
(Source: "Canada Places in Top Ten," Calgary Herald.)
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6. Canada`s Economy
ⶠExports $400 billion
ⶠCanada is the USâs largest supplier of oil
ⶠThe US largest trading partner
ⶠChina is second
ⶠNot affected as much by the 2008 recession as other
countries.
9. Business in Canada
ï One of the most profitable places in the world for
international business and direct foreign investment
ï In 2012 study, The best country for business in the
G-20 according to Forbes Magazineâs
ï 6th Happiest nation in the world
ï Didnât suffer 2008 economic downturn due to stricter
mortgage qualification requirements
10. Immigration Trends in Canada
ⶠOver 250,000 immigrants become permanent
residents in Canada each year
ⶠEvery year over 150,000 foreign workers come to
Canada
ⶠ60% are skilled workers, investors, entrepreneurs
and their families
â¶Immigration is boosting the Real Estate Business
12. Organizations in Canada
ⶠPart of several Trade organizations;
ⶠNorth American Free TradeAssociation (NAFTA) what
happens with NAFTAwill impact economy!
ⶠOrganization of Economic Co-operation and Development
(OECD)
ⶠWorld Trade Organization (WTO)
â¶Maintain up to date property costs with changes to NAFTA we may see a
real estate bubble in next couple years.
13. Canadian Culture
ⶠSimilarity in culture and business.
Subtle differences:
ⶠFor French Canadians, print all
material in French and English.
ⶠCanadians are very polite: Say
âSorryâ on average 45,000 a day ;)
14. More Cultural Differences
ⶠPersonal space and body movement or gestures
differ between the English and the French
provinces and cities.
ⶠIn English areas, body movement is minimal.
Usually there no touching other than
handshakes, and personal space - how close
someone stands - is about two feet.
ⶠIn French areas, people stand closer together.
They frequently touch and gestures are more
expressive.
ⶠRestrain your arm gestures when meeting and
talking with Canadians - other than with French
Canadians.
15. Online Property Resources
ⶠProperties can be found on the
internet via property websites.
www.sajadahmed.com
real estate listing sites based in Canada
such as www.remax.ca.
16. Residency
ⶠCitizenship: An American citizen or permanent resident doesnât need
a visa to visit or travel through Canada; Restrictions are related to
the length of your stay. Rules and regulations for visitors to Canada.
ⶠNon-Resident: If you stay in Canada for 6 months or less each year,
the government considers you a non- resident, but you can still open
a bank account and buy property.
ⶠResident: If you live in Canada for more than 6 months
per year, you must apply for immigrant status.
17. Canadaâs Real Estate Transaction
ⶠReal estate agents self-employed & earn fees in the form of
commission.
ⶠCommission varies from 3-7% properties types & different
around the country.
â¶In British Columbia and Alberta the typical rate is 7/3%, i.e. 7%
on the first 100,000 and 3% on the remainder.
ⶠIn Ontario and Quebec: usual rate is 5%. The
services of a realtor are free for the buyer.
18. Real Estate Terms
ⶠBuyersâ agents new in Canada defined:
â¶Buyersâ agents represent the buyer instead of the seller, and should
provide an unbiased opinion on properties, as buyersâ agents arenât
selling properties on their own listings like real estate agents. They
are generally paid a percentage of the sales commission paid to the
listing Realtor. Buyersâ agents should also be licensed real estate
agents.
ⶠRealtor: A real estate agent, broker or an associate who holds active
membership in a local real estate board that is affiliated with the
NationalAssociation of Realtors and the Canadian Real Estate
Association.
19. Facts on Canadian REALTORSÂź
ⶠExchange Rate: Prices shown on www.REALTOR.ca are in
Canadian dollars.
ⶠFor currency exchange rate: Bank of Canada's Daily Currency
Converter.
ⶠReal Estate Property Taxes: If purchasing property in Canada as a
U.S. citizen, client may be required to file tax forms to the
Canada RevenueAgency (CRA): real estate tax rules and regulations
for American visitors.
20. Canadaâs Real Estate Terms
ⶠBuyer often referred to as the Purchaser
ⶠThe Seller often referred to as Vendor
ⶠPrincipal: a person who has engaged an Agent to act for
and on his/her behalf either to buy or sell a home
ⶠDual Agency: Real estate agent is representing both buyer
and seller in the same transaction. Agent allowed when
promises confidentiality, loyalty and full disclosure to
both parties simultaneous, it necessary to limit these
duties in the situation, if both arties consent
21. Restrictions on Property Ownership
ⶠMost provinces have no restrictions on foreign ownership of property.
Majority of Provinces (British Columbia, Ontario, Quebec, Nova
Scotia, Newfoundland, New Brunswick) have no restrictions on
foreign ownership of real estate in Canada, some limit the amount
of property/land that a non-resident can purchase.
ⶠSome places do limit to the amount of land one is able to purchase.
ⶠIn Vancouver there is now a 15% additional tax for non- Canadian
citizens and non-permanent residents, due to the huge rise in
house prices there stemming from foreign, particularly Chinese,
investment in the property market.
22. Restrictions in Buying Property in Canada
â¶On Prince Edward Island, non-resident buyers
must apply to the Island Regulatory and
Appeals Commission for land over 5 acres in
size, or land with a shore frontage greater
than 165 feet. In Manitoba, non- residents are
prevented from owning farmland unless they
actually plan to move there within 2 years.
â¶Non-residents may not own land over 10 acres
in size in Saskatchewan, whilst in Alberta
they may only own up to 2 plots of land not
exceeding 20 acres in total.
23. Making An Offer
ⶠOnce an offer is made and accepted, a deposit is payable.
ⶠWhen buying a house in Canada, an offer must be made in writing so all
aspects of the transaction are clearly outlined within the offer.
ⶠOnce the buyer has signed the document, it becomes legally binding. If
you withdraw from the offer at this stage, you may lose your deposit
and may also be sued.
ⶠFIXTUREs: Make sure that every item staying in the property, e.g..
carpets, fixtures and appliances, is written on the offer as 'chattels
included'.
24. Realtor Add TWO Clauses
ⶠRealtor should include two clauses stating that the offer will only
proceed:
ⶠSubject to building inspection
ⶠThe buyer is able to meet your financial obligations.
ⶠOnce your offer is complete, it presented to the seller and negotiations
are made. This may include changes in price, completion date and
chattels. The changes are initialed by the seller and returned to you (the
buyer) for your initials. The resulting Agreement of Purchase and Sale
will state the purchase price and the deposit. The deposit is placed in a
trust account and is credited towards the purchase price once the offer
has been accepted by both the seller and the buyer and the transaction
is complete.
25. Canadian Banking
ⶠBuying property may be good investment by data released by
BMO last year showing Canadian homes were 41 percent more
expensive than in the U.S.
ⶠInterest rates were historical low for last several years.
ⶠMoodyâs ranked Canadaâs banking system number one in the
world for financial strength for past nine years.
ⶠCAD is Canadians sign of money below:
26. Canadian Mortgages differ In US
ⶠMaximum amortization: Canadians Mortgages: Calculated on a 25-30
year amortization rate, with the contract renegotiation every five
years. While in U.S., the mortgage lasts for 30 years without a
renegotiation.
ⶠIn U.S., you may deduct mortgage interest payments,
but not deduct them in Canada.
ⶠNeed Income qualifications
27. Getting A Mortgage
ⶠPermanent residents and Canadian citizens, a mortgage typically can
be obtained at 75% of the purchase price over a 25-year term.
ⶠNon-residents typically take out a 65% mortgage and
have to pay 35% as a down payment.
ⶠQualifying for a mortgage depends on your credit rating, assets, income
and savings. The estate agent can help you to look for a mortgage
broker.
ⶠAfter submitting the application, the relevant documentation approval
usually takes 1-2 days. The documentation required typically includes
proof of income, tax returns, ID and bank statements, among other
things.
28. Mortgage Documents
ⶠForeign banks cannot register mortgages in Canada, so any
mortgage would have to be raised via a Canadian mortgage broker.
(Please see 'Transferring Funds' for more information).
ⶠThe borrower will require the services of a Canadian lawyer or
notary public to prepare the mortgage documents and registration
at the Land Titles office.
ⶠDocuments can be couriered outside Canada for signing - this will
need to be arranged with the lawyer and lender well in advance of
the completion date.
29. Mortgage Documents
ⶠLawyer: Prepares the mortgage documents the borrower and can
help when negotiating and signing the deeds to the property.
ⶠLegal fees around $1,500 fees and disbursements by the end of the
buying process. Lawyers review the Offer to Purchase, search the
title, draw up mortgage documents and tend to the closing details.
Lawyer fees varies between Provinces & depend on the complexity of
the sale and the type of property.
ⶠFind suitable lawyer on sites such as www.canadian-
lawyers.ca,
30. Transaction Costs
ⶠRealtor's Fees are paid by the vendor and are negotiable between 3 & 7%
of the home's market value. As an example, Realtors often charge 7% on
the first $100,000 of the sale price and 3% on the remainder. GST of 5% is
also applied to the Realtor's commission and is payable by the vendor.
ⶠAppraisal Fee Your lender may require a property
appraisal at your expense. The cost is between $200-
$300.
ⶠSurvey Fee Your lender will require an up-to-date survey.
If the Seller does not have one, you will have to pay to
have one done. This can be approximately $150-$350.
ⶠLawyer's Fees Lawyers review the Offer to Purchase, search the title,
draw up mortgage documents and tend to the closing details. The fee
will be approximately
$500-$1500. This amount varies between Provinces depending on the
complexity of the sale and the type of property.
31. Transaction Costs
ⶠHome Inspection Fee is usually around $450. This is the equivalent of a
survey in the UK and other countries and is carried out at the purchaser's
request.
ⶠProperty Insurance which covers the replacement value of the structure of
your home and its contents.
ⶠService Charges can be in the region of $35-$50 to hook up new services
and utilities.
ⶠCondominium (Strata) Fees are charged monthly and cover building
insurance and maintenance. The buildingâs property manager will provide
you with the fee. For a newly built condo worth $250,000, expect to pay
approximately $200 per month (this varies from building to building).
32. Tax Guide
ⶠCanada Law (Canada RevenueAgency)
ⶠUS Law (Internal Revenue Service)
ⶠUS/Canada Tax Treaty
ⶠEnvironmental Law: Canadians insist
offenders of environmental laws be
held accountable
ⶠFrench Language: The Charter of the
French Language makes French the
official language of the Province of
Quebec and confers on every person
the right to be communicated with in
French
34. Useful Resources:
ⶠCanada Mortgage and Housing Corporation
ⶠCitizenship and Immigration Canada
ⶠCanadian Real Estate Lawyers
ⶠCanadian Real Estate Association
ⶠAdvice on Moving to Canada
ⶠCanadian Cities
ⶠCanada Revenue Agency
ⶠInvesting in Canada
ⶠTaxes for Non-Residents - Canada Customs and Revenue Agency
35. PART II: Canadians Buying in
The United States.
ⶠAccording to NAR, Canada and China have been
the fastest growing source of international clients
for REALTORSïą
ⶠ86% of Canadians pay cash and
14% finance
71 %
Canadian buyers
purchased properties in
Florida, Arizona, and
California
39. What Canadian Buyers are Looking For
Central
City/urban
12%
Small
T
own/Resor
t
47%
Suburban
Area
41%
Detached Single-
Family
93%
Other
2%
T
ownhouse/
Condo/Apt
5%
41. Business in Quebec
ⶠOver 900,000 immigrants live in Quebec
ⶠ24.7% from Asia
ⶠ22.1% from America
â¶Aerospace sector of
Canada
ⶠHome of Cirque du Soleil
42. Business in Quebec: Montreal
ⶠPopulation: 1.65 million
ⶠAverage house price: $329,339
ⶠSignificant sale of condos in downtown Montreal
ⶠMany presales sell-outs
ⶠBuyersâ market â slow down perhaps this year
43. Luxury Real Estate in Quebec
ⶠLuxury single family
homes start at $3
Million in Montreal
ⶠMinimum 5000
square feet
ⶠStrong
international
influence
51%
49%
Foreign Investment
Domestic
Internation
al
44. Business in Ontario
â¶Ranked top in global competitiveness, quality of
life and innovation
ⶠPopulation: 14 million
ⶠAverage housing price: $400,000.00
45. Immigrants in Ontario
â¶According to Statistics Canada over 3.5 million
immigrants live in Ontario
- 41% from Asia
-16% from Americas
41%
38%
16%
3% 2% Asia Europe
Americas Africa
Other
46. Business in Ontario - Toronto
ⶠOne of the most multicultural cities in the world
ⶠToronto Region Board of Trade: Canada's largest local
chamber of commerce
ⶠBanking and market center of Canada
ⶠHigh Demand luxury homes over 2 Million
ⶠHigh demand for large luxury homes- 8000 SF
47. Business in Saskatchewan
ⶠAverage house price: $300,000
â¶Strong resource economy for potash and oil
â¶Fast growing economy is attracting investment
48. Business in Alberta
ⶠStrong economy and increasing revenue
ⶠCanadaâs largest producer of oil and gas
â 6th largest in the world
â¶Worldâs second largest exporter and fourth largest
producer of natural gas.
49. Real Estate in Alberta
ⶠAverage house price: $400,000
â¶Large amount of wealth in Calgary driving
luxury real estate market
ⶠLuxury Homes start at $2 M
50. Business in BC - Vancouver
ï Average house price: $800,000
ï Most expensive city in North America
ï Port Metro Vancouver:
Asia-Pacific Gateway
and Corridor
ⶠRanked 1st for quality of living in North America
51. Vancouver Luxury Real Estate Market
ⶠAverage starting price: $3 Million
ⶠRanges from $2M - $4M depending on location
ⶠSought after neighbourhoods: Shaughnessy, Point Grey, Kits,
Kerrisdale
ⶠMarket influenced by foreign buyers
ⶠ40% of SFH market
ⶠChinese purchase secondary or
investment properties in Vancouver
ⶠSurge of buyers from
the U.S. & Iran
60%
40%
Foreign Investment
Domestic
International
52. Business in BC - Richmond
ⶠ50% Asian population â largest in Canada
â¶Average price of a detached home in Richmond is
over $1 Million dollars
ⶠVery low crime rate
53. Business in BC - Whistler
â¶Resort-style living attracting more long-term buyers
ⶠLuxury real estate $2 M
ⶠ25% international buyers
ⶠTourism based economy
54. Conducting Business with Canadians
â¶Opportunity to network and establish referrals
into Canada
ⶠThanks to My Networks who shared valuable
resources for this presentation: FIABCI Canada,
AREAA, CIPS Members, Ursula Morel, Canada.
55. Thank you!
Contact: Sajad Ahmed & Dr. Naveed Siddiqui
ⶠWebsite: www.sajadahmed.com
ⶠCell +1 (647) 531-5555
Property company.
Buy sell invest in Real Estate.
sajad286@gmail.com
https://Listwithus.ca
https://mycondobrokers.com
Presented by
Sajad Ahmed & Dr. Naveed Siddiqui
www.sajadahmed.com
Disclaimer:
All Information is for educational purpose only