Cobble Hill, BC · Member since 2015 · 56 posts · 25 votes
I'm possibly moving to Canada and I was wondering what the pros and cons of flipping real estate in BC are. Specifically, my move would most likely be to Vancouver Island, so if there are any specifics about this area anyone has insight on, I would appreciate it.
We also have land transfer taxes here in Canada, which means significant taxes are paid by the purchaser on each real estate transaction.
I'm not sure what the rates are in BC, but in Toronto, as an example, a $500,000 home purchase (which is well below the average price) would be taxed $12,200.
So, for re-habbers you have to consider paying the $12M on purchase and then consider that the buyer will again have to pay (a higher) tax when they buy the property from you after you complete the re-hab.
Flipping houses can be done in any market. The objective is still the same. Buy properties below market value and flip for a profit. Ask around to see if there are any investor clubs you can attend to get a better understanding of your neighborhood and who the key players are.
Thank you. Specifically, I've been researching financing and lending practices in Canada and it seems as if they are a lot tighter. Also, as a potential investor from the States are there laws that would bar me from holding a lot of property or flipping multiple properties in a given time period? Just wondering what kind of experience or challenges others have faced in going into this market.
We also have land transfer taxes here in Canada, which means significant taxes are paid by the purchaser on each real estate transaction.
I'm not sure what the rates are in BC, but in Toronto, as an example, a $500,000 home purchase (which is well below the average price) would be taxed $12,200.
So, for re-habbers you have to consider paying the $12M on purchase and then consider that the buyer will again have to pay (a higher) tax when they buy the property from you after you complete the re-hab.