Download - Preparing to Engage the International Buyer
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PREPARING TO ENGAGE
THE INTERNATIONAL
BUYER
2012 REALTORS® Conference & Expo
November 11th, 2012
Moderator: Richard Silver, ABR e-Pro
BOSLEY REAL ESTATE Ltd, Toronto, Canada
Past-President of the Toronto Real Estate Board
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THE PANEL MEMBERS
Linda Lee: President-Elect San Diego Association of REALTORS® and California State Treasurer for Women's 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: Fiddler's Creek Realty, Inc.
Naples Area Board of REALTORS®
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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
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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
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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
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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
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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?
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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?
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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?
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THE GOLDEN RULE
Remember: Be the Source of the Source:
Know who to refer them to…Know the specialists
in areas that they may have questions with or
concerns.
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WHAT ARE THE LEGAL AND TAX CONCERNS?
BILL HARRINGTON CREA
Canadians buying in the United States
Non-Residents buying in Canada
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REPRESENTING CANADIANS BUYING IN THE US
1. Terminology
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REPRESENTING CANADIANS BUYING IN THE US
1. Terminology
2. Financing
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REPRESENTING CANADIANS BUYING IN THE US
FINANCING
Non-residents
Down Payments
Financing in Canada
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REPRESENTING CANADIANS BUYING IN THE US
1. Terminology
2. Financing
3. Residency Requirements
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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
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REPRESENTING CANADIANS IN THE US
1. Terminology
2. Financing
3. Residency Requirements
4. Tax Consequences
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REPRESENTING CANADIANS BUYING IN THE US
1. Terminology
2. Financing
3. Residency Requirements
4. Tax Consequences
5. Health Care
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REPRESENTING CANADIANS BUYING IN THE US
HEALTH CARE
Days Outside Country
Coverage in US
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REPRESENTING CANADIANS BUYING IN THE US
1. Terminology
2. Financing
3. Residency Requirements
4. Tax Consequences
5. Health Care
6. Insurance
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NON-RESIDENTS BUYING/SELLING IN CANADA
1. Residency
Requirements in 4 provinces (Prince Edward
Island, Manitoba, Saskatchewan, Alberta)
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NON-RESIDENTS BUYING/SELLING IN CANADA
1. Residency
2. Financing
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NON-RESIDENTS BUYING/SELLING IN CANADA
1. Residency
2. Financing
3. Tax Consequences on Sale
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NON-RESIDENTS BUYING/SELLING IN CANADA
TAX CONSEQUENCES ON SALE
Notification Requirements
Seller required to:
1. Provide notice to Canada Revenue Agency
2. Pay withholding tax
Failure of seller to do so:
Purchaser to withhold amount from purchase price
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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 ?
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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?
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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.
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HOW NAR CAN HELP!
BRETT BROWN FIDDLER'S CREEK REALTY, INC.
NAPLES AREA BOARD OF REALTORS
How does NAR help members engage in this
lucrative global market?
Research
Alliances
Networking
Education
Technology
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HOW NAR CAN HELP!
RESEARCH
2012 Profile of International Home Buying Activity
http://www.realtor.org/reports/profile-of-international-home-buying-activity
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HOW NAR CAN HELP!
RESOURCES
www.realtor.org/field-guides
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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
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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.
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HOW NAR CAN HELP!
EDUCATION
Become a Certified International Property
Specialist (CIPS)
The ultimate global tool kit
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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
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HOW NAR CAN HELP!
GLOBAL NETWORKING
Located at Booth Number 2447
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PREPARING TO ENGAGE
THE INTERNATIONAL BUYER
Questions and Networking
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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