If the real estate market is headed for a correction, then it presents a historic opportunity for buyers of investment properties. The main reason is that interest rates should continue to remain at historic low levels, even as prices fall. The key thing to remember is that the property must have positive cash flow.
Krishna Tantry's blog
Some investors who bought new homes or condos in the past few years planning to flip them in a hot Toronto market are facing HST bills of up to $30,000.
When I started my first permanent job as a journalist in 2004, I made the best financial decision of my life — I invested in two rental properties with my brother.
While many of our friends were living in chic condominiums, we were chasing tenants for rent and fixing leaky pipes.
Elli Davis was a woman well ahead of her time when she bought her first condo 26 years ago.
“It took me about an hour. There were just two buildings to choose from in the (central Toronto) area at the time,” says Davis, who wasn’t even 30.
Many buyers of new GTA condos looking to cash in on the hot real estate market by flipping their units before the buildings close face an unusual legal situation — the standard purchase and sale contracts don’t apply.
A matrimonial home is recognized as a very special asset by the law in Ontario. That means that if the home is sold, it will usually be divided equally between the married couple, regardless who paid for it. Even if only the husband or the wife is on title to the property, it will take both of them to agree in writing to sell it.
There have been a lot of stories of foreign citizens buying Canadian condominium units from floor plans and then reselling them, for a profit, as soon as the building is registered. These sellers must be aware that the Canadian taxman must be paid before they get their money. In some cases, the entire deal could be delayed until this gets done.
When you sell a property that isn’t your principal residence and make a profit, half of the amount is taxable. This is the so-called capital gains tax and it’s pretty straight forward, but every situation is different.
When you buy a condominium from plans that won’t be built for a few years, the developer has to give you a list of important documents when you sign the sale agreement. These include the rules that will govern the condominium and a budget for the first year, so you can figure out in advance what you will pay for common expenses.