Canadian Boomers are Buying
CANADA
WHY CANADIANS?
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
CANADIAN HOMEOWNERS
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
1. Average Canadian home price is $365,000
2004
2014
2. Increases of up to triple the purchase price.
Vancouver
Westside
$835,101
$2.8 million
3. Mortgages : 25% down payment /25 years
Vancouver
Eastside
$416,674
$942,555
Calgary
$227,269
$434,000
Edmonton
$202,711
$438,279
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.
Toronto
$315,231
$943,055
5. Average equity in a Canadian home is 66%
(vs. 45% in USA)
THE CANADIANS ARE COMING!
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
USA VS MEXICO
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
COUNTERING THE USA MARKET
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
PROFESSIONAL MARKETING
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.
WHERE TO FIND
CANADIAN BUYERS
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.
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
CANADA