Cross Border Pro

How The U.S. Subprime Effects Canada

The Canadian economy has continued to prosper even as the U.S. economy struggles.  When it became apparent the extent of the U.S. subprime meltdown, many were concerned about what effect it would have on the Canadian economy.  Many Canadian banks and investors lost money because they had invested in U.S. subprime mortgages. The global credit market has tightened and lending requirements have become more stringent, however money is still available for good projects and qualified borrowers. The real effect on Canada is more of a Second Wave.  Many homeowners that weathered the subprime meltdown and were able to keep their homes have now lost their jobs because of economic slowdown and they end up loosing their home anyway. So just when people are seeing the light at the end of the tunnel with the last of the subprime mortgages clearing the market, the slow economy takes hold and people are forced out of their homes anyway, which further depresses the housing market.  This is where the U.S. economy really effects Canada.  Consumer confidence in the U.S. is way down.  Consumers aren't buying goods and services like they used to - many of these goods and services are from Canada. As a result Ontario, which has a huge manufacturing economy based on exporting goods to the U.S. is struggling. The lumber industry in Western Canada has slowed because the U.S. construction industry has slowed.  Tourism is down in Canada as U.S. consumers halt travel plans. When U.S. consumers stop buying it effects the entire global economy. 

Purchasing Development Property Located Outside BC

If you live in British Columbia or for that matter anywhere in Canada I am sure you have noticed more and more advertising of properties for sale in the United States in local Canadian newspapers and real estate guides. I have seen whole multiple page inserts for development projects in Palm Springs and a lot of advertising for Las Vegas also.  Recently, the Superintendent of Real Estate in BC came out with a statement regarding purchasing in these projects.  The Real Estate Development Marketing Act continues to govern the marketing in BC of development properties located anywhere in the world.  Under the Act, local and foreign developments must meet similar requirements in order to be marketable in BC.  The developer must file a disclosure statement with the Superintendent of Real Estate before marketing begins. Deposits must be held in BC by a lawyer or notory unless deposit insurance or an exemption has been obtained.  If you go to the Superintendent's website you can see these exemptions.  They basically disclose where the project is located and how the deposits will be held and under what circumstances they will be released. 

So if you are considering buying a property in the U.S. based from marketing you saw in BC, call the Superintendent of Real Estate and ask about the developer.  There is a good chance they are registered with the Superintendent.  If they are, then you as the buyer have some additional protection in your purchase of foreign property.

Non-Traditional Cross Border Business

I am constantly amazed at how people make a living and the varied business opportunities that exist. Cascadia Cabs, which operates pedicabs in Bellingham, Seattle, and Portland has just been approved to opperate 10 of the pedicabs in Vancouver, BC.  This is an inovative entrepeneur who is not affraid to tackle the cross border issues and hopefully reap the rewards.  Although it makes sence to look at a major metropolitan area for future expansion, especially when it is less then one hour away from your current operations, some would be scared off by the border.  But if this company were to avoid Canada, where is the next expansion area beyond Seattle and Portland?  Eight hours away in San Francisco - or even further?  Vancouver is only a short three hour drive north of Seattle and only 45 minutes from Bellingham, were this company already has operations. Although the focus previously has been on Canadian companies moving into the larger US market, I think we are going to see more US companies realizing that there is a large market in Canada with consumers with full pockets from an economy that is out performing the US economy.