I'm just looking into the field of real estate investing, and live in the Greater Toronto Area in Canada. I'm personally looking to start out doing flips and eventually would like to move into a buy-and-hold strategy.
My concern/question is that my initial (inexperienced) market research has led me to believe the housing market in this particular area is quite overvalued and some economists have even stated it is looking very bubbly. Is this a good time to look into real estate given this information or not?
Finding deals to flip in the GTA is very tough, it can be done but takes a lot of perseverance. And now isn't really the greatest time if you are just starting out. If and when the market takes a downturn, you could end up holding the property indefinitely or have to sell at a loss. You'd be much better off going to the outlying areas such as Hamilton, Barrie, Whitby, Oshawa, etc as these locations won't take as a big of a hit if the market turns.
Hi @Kalem Wood . Have you considered the cost of land transfer tax in Toronto or the rest of Ontario? Flipping is not quite as simple here as it is in the USA. I would flip if we had more in common with the USA, but since we don't, I personally stick to buy-and-hold.
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