Preparing to Engage the International Buyer

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

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®

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 specialists

in areas that they may have questions with or

concerns.

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 US

1. Terminology


1. Terminology

2. Financing


FINANCING

Non-residents

Down Payments

Financing in Canada


1. Terminology

2. Financing

3. Residency Requirements


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 US

1. Terminology

2. Financing


4. Tax Consequences


1. Terminology

2. Financing


4. Tax Consequences

5. Health Care


HEALTH CARE

Days Outside Country

Coverage in US


1. Terminology

2. Financing


4. Tax Consequences

5. Health Care

6. Insurance

NON-RESIDENTS BUYING/SELLING IN CANADA

1. Residency

Requirements in 4 provinces (Prince Edward

Island, Manitoba, Saskatchewan, Alberta)


1. Residency

2. Financing


1. Residency

2. Financing

3. Tax Consequences on Sale


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

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 ?




What do consumers, agents and broker-managers look for to support their international business?

How do Canadian buyers differ from American buyers?




How might growing internationalization

in the real estate space impact how you

build your own international referrals.

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

HOW NAR CAN HELP!

RESEARCH

2012 Profile of International Home Buying Activity

http://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 BUYER

Questions 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






http://www.realtor.org/reports/state-by-state-international-business-reports






















