Understanding the Canadian Demographic Baby Boomer generation reached retirement age in 2013. (65 years old) 30% of Canadians are Boomers/Retirement age (9 million) 7/10 (69%) households own their home Canada now has the highest-earning middle class in the world. 2012 median net worth among family units — of two or more persons — has risen 44.5 per cent since 2005 to $243,800, and almost 80 per cent from 1999. British Columbia reported the highest family median net worth at $344,000 Source: The Atlantic, Statistics Canada
If Vancouver real estate prices continue on the parabolic rise of the past 10 years, an average older house on the west side will be worth $7 million by 2024, according to appraisal firm Altus Group. CURRENT HOME PRICES 20042014 Vancouver Westside $835,101$2.8 million Vancouver Eastside $416,674$942,555 Calgary$227,269$434,000 Edmonton$202,711$438,279 Toronto$315,231$943,055 1.Average Canadian home price is $365,000 2.Increases of up to triple the purchase price. 3.Mortgages : 25% down payment /25 years 4.A home in Vancouver bought in 2004 with 25% down would hold a mortgage today of $430,000 leaving a potential of $2.45 million in home equity. 5.Average equity in a Canadian home is 66% (vs. 45% in USA)
Estimated 1 million foreigners living in Mexico 1/3 is Canadian = 330,000 residents in Mexico Up to 10% of North American retirees will move at least part time to Mexico within the next 15 years Canada = 900,000 retirees to Mexico (60,000 home sales / year for 15 years) Source: Mexico Tourism Board
Number one foreigner buyer in USA is Canadian 8% of all USA home sales are to foreigners and 24% is Canadian ($6.8 billion annual) Buying in the Sun destinations of Florida, California, Arizona and Texas 70% are purchasing vacation properties Spending an average of $365,000 Buyers range from couples in their 30’s to families in their 40’s to semi-retired and retired in their 50’s – 70’s
How does Mexico stand apart? PRICING - perceived value AMENITIES - infrastructure CULTURE - unique and varied NATURE - plants, animals, landscape Violence | Poverty | Language INSTILL CONFIDENCE IN THE BUYER
DON’T HIDE. Address issues up front IT’S IN THE DETAILS. Proper translation, quality photography, simple design SPEND MONEY. Professional website, consistent branding and messaging. Hire an English copywriter. Hire a graphic designer. Consider your own buying practices. How do you make informed buying decisions? IT’S WHO YOU KNOW. Align with recognized brands such as AMPI, CREA, NAR and consider CIPS designation BE THE BEST YOU CAN BE. Implement best practices and stay consistent.
1.ALIGNMENT – Referrals… AMPI, CREA, AARP, CARP 2.TARGET - Target specific geographical areas (Westcoast vs Eastcoast) 3.EDUCATE – What are the differences between Canada, USA and Mexico? 4.GO LOCAL– reach out to local Canadians. Build experience, credibility, take advantage of word of mouth 5.HEAD NORTH – Tradeshows, Expos, Conferences. Meet realtors, brokers, professional advisors, buyers 6.ONLINE – it all starts online.
100% of all real estate sales in Canada start online 99% of all Canadians have access to the internet The most connected country in the world. All MLS real estate listings in Canada are online. Canadians expect and trust online sources more than any other medium 133680 Listings – June 14, 2014