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Canada is a great place to call home. As a beautiful country with great jobs and a high quality of living, it’s no surprise that many people around the world are interested in making Canada their new home.
Now more than ever, homes in Canada are appealing to buyers beyond our borders. But what does this mean for Ontario residents looking to sell their homes? Opening up your home to a global market can have a wide variety of benefits, but it does come with a few special considerations. As experienced agents, we’re familiar with the advantages and potential challenges that can come with selling your home internationally.
Here’s what homeowners need to know about selling to a global audience.
Curious about market trends in your area? Talk to us.
Why Sell Internationally?
As home prices in Ontario continue to break records, you may wonder why selling internationally is even necessary. While there’s no better time to be a seller, utilizing every possible advantage can help you achieve the best outcome on the sale of your home.
Listing your home to a global audience will instantly allow you to access more eligible buyers. This increased competition will help you get the best price for your home and can even spark a bidding war.
Although it’s a great approach for any type of home, selling internationally is especially beneficial for unique properties. If your home has special features, it could be worth more to the right buyer than someone who may not appreciate it. Similarly, if you’re experiencing difficulty selling your home locally due to its unique features, accessing a broader market can help overcome this.
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Working With The Right Agent
Along with a whole list of advantages, selling your home internationally can also bring its fair share of complexities. Working with an experienced real estate agent can help minimize any complications you may run into in the listing or selling process. The right agent will not only be familiar with the global sales process, but they’ll also have relationships with international agencies to help market your home once it’s for sale.
Royal LePage Carriage Trade is a leading platform for international luxury home buyers. As experienced luxury sellers, the Wright team can get your home listed on Carriage Trade and promoted to buyers around the world in a flash.
Advertising your home outside of Canada is no small task. In many cases, it involves hiring a translator and placing a strong emphasis on the photos and videos used in your home listing. In addition to this, showing your home virtually can also have its challenges. If you have buyers interested in your home who are several time zones away, you may need to be out of your house at unusual hours to accommodate virtual showings. An experienced agent will be able to guide you through each of the special marketing considerations that come with an international listing. Our luxury selling programs offer custom marketing solutions to help your home shine on the global stage.
Ready to find a new home in the Ottawa area? Check out these great resources on our blog.
Will the Non-Resident Speculation Tax Impact Me?
With a growing number of foreign buyers in recent years, less market inventory has become available for Ontarians. As a result, the provincial government announced steps to de-incentivize international buyers, making more homes available for local residents. In 2017, the Non-Resident Speculation Tax (NRST) was introduced. When it came into effect, the NRST applied a 15% taxation to residential properties purchased by foreign nationals in the province’s ‘Golden Horseshoe’ region.
Over the past five years, the available housing inventory for Ontario residents continued to shrink exponentially. As a result, the provincial government announced an expansion of the NRST in 2022. This expansion increased the tax rate to 20% and made it applicable province-wide. As of March 30, 2022, foreign buyers who purchase a home in the Ottawa region will also be subject to the NRST. However, buyers who commit to laying down roots in the province long-term will be eligible for rebates.
While the NRST may reduce the appetite of some international buyers, it’s unlikely to deter them altogether. As the demand for housing in Ontario continues to break records, buyers will remain inclined to pay top dollar for property.
What About the Federal Ban on Foreign Purchasers?
In April 2022, the federal government announced a two-year ban on foreign ownership of residential properties in Canada. This announcement came alongside other initiatives designed to make housing more affordable for Canadians, but how does it impact sellers?
It’s important to note that the upcoming ban only applies to buyers who are not planning on living in the property. Therefore, newcomers and foreign residents who are relocating to Canada are still eligible to purchase homes.
As a fast-growing economic and cultural hub, Ontario is a desirable place to call home for many future Canadians. As a seller, reaching a global market with your home can help you achieve the best possible outcome. Working with our team can help you access international buyers with ease and ensure a smooth process.
Ready to sell your home on the global stage? Get in touch with us.