Foreign buyers of real estate in Quebec are putting “marginal” pressure on prices while still accounting for a tiny sliver of the market relative to Vancouver and Toronto, according to new data released by the French-speaking province.
Non-Canadian residents generated 1,307 property transactions in Quebec last year, representing 1 percent of all deals, finance ministry documents show. That’s little changed from 2008, when they made up 0.8 percent of the total. Foreigners mostly purchased high-end properties, averaging C$559,000 ($434,343) apiece, the finance ministry said Tuesday.
U.S.-based buyers made up the biggest share of foreign acquirers with 32 percent of all transactions. French buyers were next with 20 percent, followed by Chinese nationals at 16 percent. That’s a marked contrast from 2006, when Chinese residents accounted for just 1.3 percent of all foreign home transactions in Quebec.
Quebec recently began tracking and releasing data on the country of residence of home buyers following a decision by Ontario and British Columbia to impose taxes on foreign buyers.
“When we look at average prices in the Montreal area, compared to other places in Canada, they are still relatively affordable,” Quebec Finance Minister Carlos Leitao said Tuesday in Quebec City. “I don’t think we are at all in the same type of position as our neighbors in Toronto or Vancouver. There is no need, in our view, to consider any sort of more intense measures.”
Last year’s land-registry data — compiled by JLR Solutions Foncieres — show foreign buyers bought single-family homes that were twice as expensive on average as those acquired by Quebec residents, the finance ministry said. Co-ownership properties acquired by foreigners were 40 percent more expensive than those bought by Quebeckers, the ministry also said.
Foreigners accounted for just 1.4 percent of housing deals in Montreal last year, compared with 3.2 percent in Toronto and 3.5 percent in Vancouver, according to budget documents.
Especially when it comes to investment properties local buyers are having to compete with wealthier buyers from overseas, including a lot from China. Some Foreign Buyers are making either all cash purchases or requiring only short terms to acquire their mortgages. What do they know that you don’t?
They know that when you need quick financing banks can’t compete with Private Lenders for turnaround time. Private Lenders can often give a commitment letter within 24 hours of an application and disburse in 2-3 weeks. Ironically Private Lenders are not a big secret. Borrowers get scared away from the higher interest rates. However since these loans are short term (generally 1 year) it is a small price to pay to get the property you desire, and not get beat out by a foreign investor. One of the most experienced Private Lenders in Quebec is TempBridge Inc. For more information on how they can help you visit them at www.tempbridge.ca
