TORONTO — The calls started coming in Wednesday morning from Americans looking to move to Canada, but some of them need a little education about our country — including the fact there’s no oceanfront property in Toronto — says the chief executive of one of the country’s largest real estate companies.
Phil Soper, chief executive of Royal LePage Real Estate Services Inc., said that throughout election season Americans have been making inquiries about moving to Canada because they are worried about the contentious political battle south of the border.
“The interest is there. We are getting phone calls from them (across the country),” said Soper, whose company also has a formal relocation company, Brookfield Global Relocation Services, to help buyers handle such a move. “Yes, there is interest, but whether it translates into such a move to an increase in business, only time will tell.”
Soper says Americans are the third largest group of immigrants to Canada and even a tiny increase in them moving north could have broad implications for the housing market.
“They are one of the larger cohorts. It wouldn’t take a large number to have a large impact. When you compare the 325 million Americans with 225,000 people we invite to the country each year, you can see an uptick having a material impact on Canada. But it’s small relative to the size of (the U.S.),” he said.
Some want to know where is Muskoka compared to Toronto or how far is Toronto from the ocean
One common immigration route for Americans is buying recreational property in Canada first and then discovering they like the country, which means looking for full-time employment. Soper calls it a “pilot project,” where people test the waters before committing.
“There are a lot of questions, some of it is understanding the geography,” he said. “Some want to know where is Muskoka compared to Toronto or how far is Toronto from the ocean. Of course, you can go on (the Internet) and get a high level view of Canada.”
The interest in property tends to focus on large cities, followed by recreational property markets. One issue that could impact U.S. buyers in British Columbia would be the 15 per cent additional land property transfer tax that applies to foreign buyers — including Americans — in metro Vancouver.
“I will say that tax doesn’t apply in Whistler and that’s a big area for Americans,” said Soper, adding there might be more interest inland B.C., in places like Kelowna.
The key to what happens to the Canadian real estate industry will come with how a Donald Trump presidency is viewed globally — a negative view would potentially drive capital into Canada and away from the U.S.
“It’s literally too early to tell what this will do or mean to our industry,” said Chuck Scott, chief executive of Cushman & Wakefield’s Canadian operations, about the potential impact on commercial real estate. “Investments are not easily swayed by political movement. They are based on strong market fundamentals. They’ll wait and see what happens. You might see an early pause.”
It could open up an opportunity for Canada if it is seen more favourably than the U.S. “I’m not saying the U.S. will be looked at as a risky market by any stretch but if that sentiment starts to bubble up, you might see more foreign investment come to Canada because they see it as a stable market.”
John Geha, chief executive of London and St. Thomas Association of Realtors and a transplanted American, moved here in 2007 after falling in love with Canada during frequent work-related visits.
While Americans may be kicking the tires now, he’s not expecting a mass exodus of Americans to Canada or an infusion of capital coming from stateside. “The United States is a strong country, people will get back to focusing on their lives and their business. The strength of the constitution allows for the peaceful change of leadership. That’s the beauty of this country,” said Geha, who still has family living in America.
from DIYS http://business.financialpost.com/personal-finance/mortgages-real-estate/canadian-realtors-already-fielding-calls-from-anxious-americans-but-sorry-toronto-isnt-on-the-ocean
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