PREPARING TO ENGAGE THE INTERNATIONAL BUYER2012 REALTORS® Conference & ExpoNovember 11th, 2012Moderator: Richard Silver, ABR e-ProBOSLEY REAL ESTATE Ltd, Toronto, CanadaPast-President of the Toronto Real Estate Board
THE PANEL MEMBERS Linda Lee: President-Elect San Diego Association of REALTORS® and California State Treasurer for Womens Council of REALTORS® Bill Harrington: General Counsel, The Canadian Real Estate Association Asif Khan: Asif Khan & Associates - Real Estate Professionals, Re/Max All-Stars Realty Inc. Phil Soper: CEO,Brookfield Real Estate Svcs - Royal LePage, Prudential Canada, Via Capitale Brett Brown: Fiddlers Creek Realty, Inc. Naples Area Board of REALTORS®
WHO IS THE INTERNATIONAL BUYER? North American Buyer/International Buyer Investing for Immigration purposes Investing for their children to go to School in North America Interested in diversifying their Real Estate Portfolio Coming to work or study in North America
WHERE IS THE INTERNATIONAL RESIDENTIAL BUYER COMING FROM? Canada 24% China 11% Mexico 8% India and the U.K. 6% Brazil, France and Germany 3% Russia 2% Japan 1%Source: National Association of REALTORS®Profile of International Home Buying Activity 2012
WHERE IS THE INTERNATIONAL HOME BUYER BUYING IN THE U.S.? Florida 26% California 11% Texas and Arizona 7% each New York and Georgia 4% each Nevada 2.5%Source: National Association of REALTORS®Profile of International Home Buying Activity 2012
WHERE IS THE INTERNATIONAL RESIDENTIAL BUYER BUYING IN CANADA? Toronto, Ontario Vancouver, British Columbia Why those areas? Cultural Diversity, Family Migration, Multi-Cultural, Shopping and Schooling
WHAT QUESTIONS NEED TO BE ASKED? ASIF KHAN AND LINDA LEE What are the reasons you would like to invest in real estate in the US? Investment, Income, Immigration, Diversifying Assets or Residence? Who are your attorneys and accountants in the US and Canada? Are they specialists in the process of offshore purchases? Who would you seek guidance from for your investment decisions? What are your investment goals?
QUESTION’S CONTINUED… Do you plan to live in the property or rent it out? Is your money in the US or Canada already? Is your investment within the allowed amounts from your government? Have you purchased property offshore before and if in Canada or the US is it financed and could it be leveraged? Will immigrating to the US or Canada be a part of the home buying plan? If so, where are you in the process of immigration?
QUESTIONS…. What are the ideals of properties you are looking for? Will you be financing the purchase abroad and paying cash here or would you require financing in Canada or the US? If so, do you have bank confirmation of funds and job letters from abroad? What are other considerations that you need assistance with?
THE GOLDEN RULE Remember: Be the Source of the Source:Know who to refer them to…Know the specialistsin areas that they may have questions with orconcerns.
WHAT ARE THE LEGAL AND TAX CONCERNS? BILL HARRINGTON CREA Canadians buying in the United States Non-Residents buying in Canada
REPRESENTING CANADIANS BUYING IN THE US1. Terminology
REPRESENTING CANADIANS BUYING IN THE US1. Terminology2. Financing
REPRESENTING CANADIANS BUYING IN THE US FINANCING Non-residents Down Payments Financing in Canada
REPRESENTING CANADIANS BUYING IN THE US1. Terminology2. Financing3. Residency Requirements
REPRESENTING CANADIANS BUYING IN THE US RESIDENCY REQUIREMENTS Personal Citizens Permanent Residents Business/Work TN Visa H1-1B Visa L1 Visa E-2 Visa J-1 Visa
REPRESENTING CANADIANS IN THE US1. Terminology2. Financing3. Residency Requirements4. Tax Consequences
REPRESENTING CANADIANS BUYING IN THE US1. Terminology2. Financing3. Residency Requirements4. Tax Consequences5. Health Care
REPRESENTING CANADIANS BUYING IN THE US HEALTH CARE Days Outside Country Coverage in US
REPRESENTING CANADIANS BUYING IN THE US1. Terminology2. Financing3. Residency Requirements4. Tax Consequences5. Health Care6. Insurance
NON-RESIDENTS BUYING/SELLING IN CANADA1. Residency Requirements in 4 provinces (Prince Edward Island, Manitoba, Saskatchewan, Alberta)
NON-RESIDENTS BUYING/SELLING IN CANADA1. Residency2. Financing
NON-RESIDENTS BUYING/SELLING IN CANADA1. Residency2. Financing3. Tax Consequences on Sale
NON-RESIDENTS BUYING/SELLING IN CANADA TAX CONSEQUENCES ON SALENotification Requirements Seller required to:1. Provide notice to Canada Revenue Agency2. Pay withholding tax Failure of seller to do so:Purchaser to withhold amount from purchase price
CROSS-BORDER BROKERAGE PHIL SOPER, CEO, BROOKFIELD REAL ESTATE SVCS- ROYAL LEPAGE, PRUDENTIAL CANADA & VIA CAPITALE What motivates successful companies to push beyond their borders? What are some of cultural & structural challenges for business ?
CROSS-BORDER BROKERAGE PHIL SOPER, CEO, BROOKFIELD REAL ESTATE SVCS-ROYAL LEPAGE, PRUDENTIAL CANADA & VIA CAPITALE What do consumers, agents and broker- managers look for to support their international business? How do Canadian buyers differ from American buyers?
CROSS-BORDER BROKERAGE PHIL SOPER, CEO, BROOKFIELD REAL ESTATE SVCS-ROYAL LEPAGE, PRUDENTIAL CANADA & VIA CAPITALE How might growing internationalization in the real estate space impact how you build your own international referrals.
HOW NAR CAN HELP! BRETT BROWN FIDDLERS CREEK REALTY, INC. NAPLES AREA BOARD OF REALTORS How does NAR help members engage in this lucrative global market? Research Alliances Networking Education Technology
HOW NAR CAN HELP! RESEARCH2012 Profile of International Home Buying Activityhttp://www.realtor.org/reports/profile-of-international-home-buying-activity
HOW NAR CAN HELP! RESOURCES www.realtor.org/field-guides
HOW NAR CAN HELP! NAR GLOBAL TECHNOLOGY Listings on Realtor.com® are now on Realtor.com International® www.realtor.com/international Translations in 11 languages: English, French, Spanish, Portuguese, Italian, German, Dutch, Chinese, Japanese, Russian, Korean International Property listings- 22 countries currently represented Currency & Metric dimension converters Around 1 million unique non-US visitors on REALTOR.com each month!* Market to International Buyers- Create translated listing brochures
HOW NAR CAN HELP! BILATERAL PARTNERSHIPS NAR maintains formal relationships with 81 organized real estate associations in over 60 countries around the world. Bilateral partnerships exist to help establish business partnerships and referral opportunities.
HOW NAR CAN HELP! EDUCATION Become a Certified International Property Specialist (CIPS) The ultimate global tool kit
HOW NAR CAN HELP! EDUCATION Home With Diversity Certification(AHWD) www.realtor.org/ahwd AHWD addresses issues of diversity, fair housing, and cultural differences. Course teaches how to transact business in culturally competent ways. Counts as an elective for CIPS designation & RSPS certification
HOW NAR CAN HELP!GLOBAL NETWORKING Located at Booth Number 2447
PREPARING TO ENGAGE THE INTERNATIONAL BUYERQuestions and Networking
LINKS FOR MORE INFORMATION http://chinese-school.netfirms.com/guanxi.html http://www.realtor.org/reports/state-by-state- international-business-reports http://www.realtor.org/reports/profile-of- international-home-buying-activity http;//www.realtor.org/field-guides www.realtor.org/ahwd