As the summer approaches, I start to get inquiries from Canadian non-resident or expat clients, inquiring about how to purchase properties in Canada.
Many of these clients are Canadian citizens but they are working and living abroad in countries, such as, Dubai, Singapore, Abu Dhabi and England just to name a few countries. Canada, luckily enough is very favourable to foreign investment, and while these clients are not considered foreigners, once they live outside the country for a number of years, and no longer pay taxes at home, they are not considered citizens and thus do not enjoy the same financing benefits for residents of Canada.
Thus, I thought a good primer would be good. Let’s look at a recent example.
Currently we are dealing with a “seller’s” market not a “buyer’s market so how do you differentiate between the two? How do you navigate the sellers market and still come out a winner? And how do you buy when the market is overheated?
So how do you figure out if it’s a seller’s market or a buyer’s market? The easiest way is to look at unsold inventory. If the inventory on the market is between four and six months you have an even playing field between a sellers and buyers market. Less than that and it is usually a sellers market and beyond that and it is usually a buyers market.
If you are shopping for a home currently you are probably coming up against too many bidding wars – that’s because the inventory is low and houses are selling for thousands over asking and usually in 1-2 days. So how do you navigate this current market and still come out a winner? Continue reading