How Canada Differs From the US About Real Estate

Posted on April 9, 2017 in Uncategorized

Statistically, three out of four homes in the United States are worth what the mortgage is paid on them. In November of 2011, an estimated one out of every four hundred and ninety two homes went into the foreclosure process. Analysts are unable to determine where the U.S. will bottom out in real estate for the fourth consecutive year.

This isn’t the case, however, in Canada. Little attention is paid to Canada’s mortgage finance system by the U.S.. Historically, none of the banks in Canada failed when the Great Depression hit, and this trend continues during what the United States refers to as the Great Recession. According to published reports, there are fewer than one percent of mortgages in Canada that are delinquent.

How did Canada come out on top with real estate?

A vice president from the Canadian Bankers Association in Ottawa answered this question by simply stating they give loans to individuals able to pay them back. It sounds simple, according to one of the CEOs, but it’s how the business works.

Comparatively speaking, real estate agents in Canada aren’t quite as busy considering the differences in populations. There’s an estimated 34.3 million residents living in Canada, and the population of the USA is more than 307 million. Canada ranks ninth in the world’s economy, and the USA ranks number one.

The World Economic Forum ranked Canadian banks best in the world in recent years. However, it’s noted they’re a small group of lenders. There are 71 that have federal regulators, compared to the U.S. lenders having more than 8,000. The Federal Deposit Insurance Corporation provides insurance to U.S. lenders.

Considering how conservative Canada is, though, there’s a lot to learn from their regulatory process. The standards required are more complex, and the set-asides in preparation for economic downturns or other losses are bigger.

There are also no big write-offs on taxes for Canadian homebuyers. All they receive is a capital gains tax exemption. The fact that there are no mortgage interest deductions allows Canadian homeowners to quickly pay down their mortgages. There is also no such business model similar to Freddie Mac or Fannie Mae in Canada.

Another difference between Canada and the USA when it comes to mortgages is, if a Canadian loses their home, they are still required to pay off the mortgage debt. This is called a non-recourse loan, and it prevents Canadian homeowners from walking away from their real estate loan debt. Real estate agents disclose all of this information to potential homebuyers before the process begins. These Canadian lessons prove useful to the United States.

Mortgage-interest deductions issued in the U.S. likely won’t come up in the coming year when Congress begins debate on reducing the deficit. It’s been recommended that the USA scale back considerably on mortgage-interest deductions in order to lower debt and create more revenue used to reduce deficits.

The National Commission on Fiscal Responsibility and Reform made this recommendation, but it wasn’t put on the table. However, there are a large number of defenders of the real estate mortgage deduction stating it helps drive homeownership in the USA.

Specific Methods to Produce Real Estate Leads

Posted on April 8, 2017 in Uncategorized

The problem with most people in the real estate market is that are not aware how to go about getting more leads. There are a few specific ways how to do this which I would like to share with you.

Start a website. The internet is growing larger and larger everyday, and people are always turning to the web to get more information. Having you’re own website or blog will help show people what you’re all about, and will definitely help you gain a bigger client base.

Build a better relationship with your current clients. You may be asking how this could possibly help you gain more clients, but truth be told this works. Obviously you can’t keep in contact with all of your clients individually, but there are ways in which you can address them all together. Send out a newsletter periodically updating your clients with different information about different properties. The wider “fan” base you have, the more opportunities you have to expand.

Word of mouth. This is a lot bigger than most people think, but it’s true. If you had a choice between something that you already know and love versus something that you have no idea about, you would be more likely to choose the one that you already trust. So spread the word and start telling people.

Internet marketing. This is probably one of the biggest things that you can do. Everyday people search for millions of different products, and if you can get your foot in the door by advertising yourself on different websites, this will only increase and help you.

Look for an investor. This one people usually just avoid and move on, but this is probably one of the best things you can do. If you can find somebody to invest who has connections to get your foot in the door, take it. It’s hard to do something on your own, but if you have somebody who also knows the field and can help you out, than take it as far as you can.

These are just a few methods on how to increase your leads in the real estate game, but these are probably the top ways to help you out. Just always remember to be polite, and put the customers needs in front of your own. If you put them first, you are more and more likely to see returns on your investments, and the more likely they are to tell somebody else about you.

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Why Canadian Real Estate is Such Good Value

Posted on April 6, 2017 in Uncategorized

Real estate agents, Canadian citizens and foreign investors interested in the Canadian property market are all in agreement – as Canada becomes a more desirable place to live year on year so property investment in Canada becomes a more attractive prospect year on year.

Furthermore, because property in Canada is high quality, plentiful, incredibly affordable and easy to purchase, real estate in Canada is good value across the board.

If you need more proof, consider comparing what you can still buy for your real estate dollar in Canada to what you can currently purchase in the UK, the US, France or Spain for example.

You’ll quickly realise that the strong Canadian dollar (CAD) has not damaged the real estate market in Canada in the slightest. In fact, as the Canadian economy strengthens and more people move to the country, the demand for property will continue to rise which in turn will push up the value of any property investment.

And you simply still get more in Canada than you can elsewhere because property in Canada is less expensive overall – land is less expensive, the cost of living is lower, the standard of living is high…

This all adds up to the fact that non Canadian resident buyers are likely to be in an enviable position when it comes to investing in real estate, chances are they can afford a far higher quality purchase that they can ‘back home’ and they don’t have to become resident to buy in Canada if they don’t want to.

Add the fact that overcrowding is never going to be an issue in Canada as there are 30 million people sharing 38 million square miles of land, and the fact that Canada has a wealth of diverse property available in many stunning locations country-wide to fuel the imagination and satisfy the desires of even the hardest to please purchaser, and you’ll quickly realise why Canada remains such an attractive prospect for so many people.

And by remaining non resident you can benefit further from the property market – you don’t have to go through the rigmarole of applying for immigration acceptance, and yet you can still benefit from all Canada has to offer for up to 6 months of every year – you are even free to open a Canadian bank account, buy a car or land there for example.

Alternatively, you can join the ranks of foreigners choosing to emigrate to Canada including the 3.3 million Brits who have chosen to make Canada home permanently already. Canada is actually the third most popular place to emigrate to from the UK and more and more British citizens are being attracted to this land of opportunity, space and freedom.

This means that as Canada becomes more attractive as a destination of choice, property there will be more in demand which in turn will allow real estate prices to continue to rise making any property investment a good bet!

Whether you’re considering property in Canada from a non resident, investment stand point, with a view to letting it out before cashing in your investment in X number of years, or you’re thinking of purchasing a second home in an enviable location – or you’d like to go the whole hog and up sticks and emigrate to Canada, you will find the buying process a relatively easy and hassle free affair which can only add even more value.

Bureaucratically speaking the whole purchase process is often a lot less tricky than ‘back home’ – especially if you come from red tape rich Europe – and it takes a fraction of the time to complete the property sale process in Canada than in certain other countries where escrow periods are applied to real estate purchases.

And if you would like some cold, hard facts about past performance of the Canadian property market, an average single family home in the Vancouver area sold for CAD 13,500 in 1961, CAD 48,000 in 1974, CAD 120,000 in 1982 rising to around CAD 475,000 today.

It’s true what they say – where people want to live, property values will always continue to rise…and more and more people are choosing to live in Canada making Canadian real estate good value for property investors!

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