Foreign investment is on the rise in most Canadian cities, considering foreign investors constitute 25 per cent of luxury properties purchased in Canada – the Vancouver market alone is made up of two thirds of foreign buyers. With more and more foreign investors expected to enter the Canadian market, it is important for foreign buyers to seek real estate agents who are diverse and knowledgeable about the intricacies related to foreign ownership.

Before you can establish a successful working relationship with a Canadian real estate agent, you must first select an agent who has a background in helping foreign investors purchase properties in Canada. You want to work with an agent who not only understands your unique circumstances, but someone who can also refer you to the necessary lawyers, lenders, and property managers you may require.

Although it is advisable that you work with your real estate agent in person during the search for investment properties, you technically don’t have to and can instead entrust the responsibility onto your agent to find properties for you. If you choose this route, it is highly recommended you select a real estate agent who is familiar with working with absentee clients, and someone who can use technology to facilitate an effective working relationship. A great resource for you to browse when you’re in search of high caliber Canadian real estate agents is www.remax.ca.

Once you’ve selected your real estate agent, schedule an initial meeting to advise your agent on the types of properties you are seeking and your budget. This meeting will save both you and your agent considerable amounts of time and will help your agent determine your goals and objectives for the Canadian market. During this meeting, you also want to get clear regarding your criteria and your involvement in the process – inform your agent whether you will be an active or absent participant when it comes to the search for investment properties. This information will be crucial for your agent to know, considering if you are planning on being an absentee client – your real estate agent will need to get you connected to the required lawyers who can serve as your Power of Attorney.

After the preliminary meeting is complete, you must work with your agent during the previewing of investment properties. Whether that be in person or through the use of online video – you want to ensure your agent is aware of your unique criterions. Once you find a property worthy of purchase – ask your real estate agent to write a contract of sale and purchase agreement. Your real estate agent will then ask you to sign the document, before presenting it to the seller’s realtor for review.

If your offer is accepted – ask your agent to refer you to the necessary lawyers, notaries, and insurance providers to secure favorable rates, and ensure a smooth and hassle free closing process. A great real estate agent will be able to introduce you to lenders, secure a favorable mortgage, and also help you with interactions involving the Canadian Revenue Agency (CRA).

With that said, you must work closely with your agent and communicate your needs clearly and effectively. In addition, you should schedule weekly meetings with your agent and ask for updates regarding the process. You also need to educate yourself on the process of foreign ownership so you are better able to use the resources offered by your agent.

The following resources will serve as great guides during your search for investment properties in Canada:

http://www.crea.ca (Offers access to listings, statistics, and information about Canadian real estate market)

http://www.cra-arc.gc.ca/menu-eng.html (Offers tax related information you need to be aware of as a foreign investor)

https://www.realtor.ca (Use this website to view all possible real estate listings in Canada)

Sources: CREA, GlobalNews

By: Amtej Dosanjh