Pro's and Cons of Flipping in Canada

[Jon Magnusson]

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. 

[Andrew K.]

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.

Here's a link to more info and a calculator: http://www.ratehub.ca/land-transfer-tax

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.