Saturday, November 12, 2016

Moving To Canada After The Trump Election?

Moving to Canada After Trump's Election?

 A rising number of disgruntled U.S. citizens say the results of the U.S. presidential election are driving them to

move to Canada. Is that realistic?

What is the Canadian real estate market like? - It really depends on what kind of housing situation you're looking for, says Michelle Farber Ross, managing partner and broker at Toronto-based MMD Realty. "If you're looking for new construction, for example, expect to pop down a 10% deposit, and 50% through the course of the build," says Ross. "And, you'll be expected to show you have the full 100% to close." Ross adds that Canadian banks have "tightened up" lending for home loan borrowers. "Banks used to lend 90% ten years ago, but the highest amount that is obtainable now is 70%, and they look closely at your income and your ability to pay," she says. Right now, the Canadian real estate market is competitive and the prices are well above the historical means and averages, Ross notes. "Vancouver and Toronto are both over-priced, due to the Chinese and Eastern European money coming in, because they wanted out of China and Eastern Europe. The average per square feet for a house in Vancouver is around $800 -$1000 , and that's in a high-tax environment and less-desirable climate than oceanfront property in Florida and California, which go for $600 per square foot."
What's the tax situation? - If you like paying taxes, Canada is the place for you. According to Dale A. Walters, a certified financial planner, and author of the book, Taxation of Americans in Canada: Are You At Risk?, as a rule of thumb, a U.S. citizen moving to Canada will pay between 33% to 50% more in income tax. "In addition, there are high sales taxes and those sales taxes apply to services, not just goods," Walters says. "Also, in some cases, the person leaving the U.S. may be subject to an exit tax." Walters strongly advises Americans considering a move to Canada to discuss the financial implications with a trusted money manager and/or accountant."

Do I need to beat the rush? - You bet. According to Roxana Baiceanu, communications specialist with Canada-based Point2Homes, traffic data collected on the website shows that in the last 48 hours (in the two days after the election) the number of visits from the U.S. landing on Canadian listing pages jumped by 700%. "The most targeted cities were Toronto, Ottawa, Montreal, Vancouver, Windsor, and Cape Breton," Baiceanu says.
Here's what Point2Homes found in its 48-hour data, from Tuesday, November 8, to Thursday, November 10:
- Searches targeting homes for sale in Ontario went up by 900%, and rental listings saw a bigger surge of 1,120%

- Toronto and Ottawa listing pages saw visits jump by 515% and 275%, respectively.

- Montreal homes for sale recorded a 430% increase in searches.
- Searches for Vancouver homes for sale went up by 335%.
- Visits landed on Cape Breton listing pages rose by 600%.
What's the job market like? - The answer depends on your current line of work, says Ian Wright, a Canadian citizen, and founder of, an international moving comparison site. "For people who work in natural resource industries the job market is not great due to low global prices for most products such oil," he says. "The technology industry is doing quite well in Canada, but Americans moving to Canada should be prepared for substantially lower wages than comparable jobs in the U.S."

How can you make the move easier? - If you really do just want to drop everything and go - and you have enough money stashed away to get the task completed, look for turn-key furnishing services like Furnishr to set you up in an empty home and make it "move in ready." Furnishr, which has locations in many Canadian cities, says its service is a "natural" for U.S. citizens who are in a rush to get to Canada. "They can leave their furniture behind and just pack their personal belongs," the firm states in an email to TheStreet. "Choose one of our room designs and tell us when and where they are moving, and we'll deliver and assemble all brand new furniture in your new home."
In the end, perhaps the most critical question an American whose bags are already packed is this: "Will I be welcome in Canada?"
"Yes, I think on the whole Canada is very welcoming to immigrants from all countries, including the United States," Wright says. "However, if you do make the move be prepared to have to explain American politics and voting patterns on a pretty regular basis."

"Canadians, on the whole, are pretty baffled that Donald Trump could get elected President," Wright adds. 

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