Conducting Business Internationally

Presented by Ian MacLeodwww.LuxuryHomes.com

310-694-7755ian@luxuryhomes.com

Facts About Canada• Population of 34.88 million• US and Canada – we have the longest

shared border in the world• 90% of Canadians live within 160

kilometres to the U.S. border (American translation: 100 miles).

• Main business province is Ontario

• Largest resource province is Alberta

• Hockey Crazy Country

• Exports $462.9 billion• Resource based economy (oil, water, lumber,

fertilizers, natural gas, electricity, aluminum)• Canada is the US’s largest supplier of oil at

1,938,000 barrels per day• The US is our biggest trade partner• China is second

Canada`s Economy

• Export other products– Motor vehicles

and parts– Industrial

machinery– Aircrafts– Hockey players– Celebrities

Canada`s Economy

Strength in Canada`s Economy

• Weren’t affected as much by the recession

• Didn’t have the economic downturn due to stricter mortgage qualification requirements

• 10-25% down payment

• Income qualifications

• Maximumamortization period (25 years)

• Flexible terms

Canadian Banking• Interest rates at historical low of 1%

– Where it has been since September 2010• For the 6th consecutive year, Moody’s

ranks Canada’s banking system number one in the world for financial strength

Immigration Trends in Canada

• Over 250,000 immigrants become permanent residents in Canada each year– 60% are skilled workers, investors,

entrepreneurs and their families• Every year over

150,000 foreign workers come to Canada

• Immigration is boosting the housing sector

• Permanent residents by country

Immigration Trends in Canada

• Chinese population in Canadian regions

Immigration Trends in Canada

Business in Canada• One of the most profitable places in

the world for international business and direct foreign investment

• The best country for business in the G-20 according to Forbes Magazine’s November, 2012 study.

• 6th Happiest nation in the world

• Part of several Trade organizations;– North American Free Trade Association

(NAFTA)– Organization of Economic Co-operation

and Development (OECD)– World Trade Organization (WTO)

Business in Canada

Real Estate in Canada• A strong Spring housing market has

increased Canadian residential investment

• Average housing price in Canada: $382,373

• Dollar volume of home sales up 19% from last year

• National average sale price up 8.1%

QuebecOntarioSaskatchewanAlbertaBritish Columbia

Business in Quebec• Over 900,000 immigrants live in

Quebec– 24.7% from Asia– 22.1% from America

• Aerospace sector of Canada

• Home of Cirque du Soleil

Business in Quebec: Montreal• Population: 1.65 million• Average house price: $329,339• Significant sale of condos in downtown

Montreal in 2012– Many presales sell-outs

• Buyers’ market – slow down this year

Luxury Real Estate in Quebec• Luxury single family homes start at

$3.5 Million in Montreal– Minimum 5000 square feet

• Strong internationalinfluence

51%49%

Foreign Investment

DomesticInternational

Business in Ontario• Ranked top in global

competitiveness, quality of life and innovation

• Population: 13.51 million• Average housing price: $393,9804

• According to Statistics Canada over 3.5 million immigrants live in Ontario- 41% from Asia-16% from Americas

41%

38%

16%

3% 2%AsiaEuropeAmericasAfricaOther

Immigrants in Ontario

Business in Ontario - Toronto• Population: 2.615 million• One of the most multicultural cities in

the world• Average house price: $513,246• Toronto Region Board of Trade:

Canada's largest local chamber of commerce

• Bankingand market center of Canada

• Luxury single family homes start at $2 Million in Toronto

• High demand for large 8000 SF luxury homes

Real Estate in OntarioHousing sales in

Toronto up

16 %

Business in Saskatchewan

• Average house price: $285,147

• Population: 1.09 million• Strong resource

economy for potash and oil

• Fast growing economy is attracting investment

Business in Alberta• Strong economy and increasing

revenue• Canada’s largest producer of oil and

gas – 6th largest in the world• World’s second largest exporter and

fourth largest producer of natural gas. – In 2012, approx. 86% allocated to U.S.

• Population will hit 4 million this year

• Average house price: $379,696

• Total of $2.6 Billion in homes sales for July

• Large amount of wealth in Calgary driving luxury real estate market

• Luxury Homes start at $2 M

Housing sales up

18 % in Calgary and

25 %in Edmonton

from last year

Real Estate in Alberta

Business in BC - Vancouver• Average house price: $757,338• Most expensive city in North

America• Port Metro Vancouver:

Asia-Pacific Gateway and Corridor

• Ranked 1st for quality of living in North America

40.4% increase in

existing home sales in

Vancouver

Vancouver Luxury Real Estate Market

Lulu Lemon founder($39M)

The Mayfair ($22.8M)

Vancouver Luxury Real Estate Market

• Average starting price: $2.8 Million– Ranges from $2M - $4M depending on

location– Sought after neighbourhoods:

Shaughnessey, Point Grey, Kits, Kerrisdale• Market influenced by foreign buyers

– 40% of SFH market– Chinese purchase secondary or

investment properties in Vancouver• Surge of buyers from

the United States and Iran 60%

40%

Foreign Investment

DomesticInternational

Business in BC - Richmond

• 60% Asian population – largest in Canada

• 47% Chinese population• Average price of a detached home in

Richmond is $1,004,300• Very low crime rate

Business in BC - Whistler• Tourism based economy• Resort-style living attracting more

long-term buyers• Luxury real estate $2 M• 25% international buyers

Canadians Buying in The U.S.• According to NAR, Canada

and China have been the fastest growing source of international clients for REALTORS

• 86% of Canadians pay cash and 14% finance

71 % of Canadian

buyers purchased

properties in Florida, Arizona, and California

Canadian Home Buyer Preference

Florida39%

Arizona24%

California8%

Hawaii6%

Texas6%

Other18%

Canadians Buying in US

What Canadian Buyers are Looking For

Central City/urban12%

Small Town/Resort

47%

Suburban Area41%

Detached Single-Family93%

Other2%

Townhouse/ Condo/Apt5%

Conducting Business with Canadians

• Opportunity to network and establish referrals into Canada

• Working with agents for clients going to U.S.

• Network with AREAA Vancouver

Conducting Business with Canadians

• We are very politeand say“sorry” a lot

• We`re not all aboot igloos and dog sleds!