All Forum Posts by: Gary McGowan

It's mortgage fraudulent Canada as well.  No matter how you look at it, Sorry.  When it comes time for renewal the bank will quickly learn that the homes are not your primary residence. Also the lawyer has to sign off on the fact that the property is your primary residence.  When a lawyer receives the direction instructions form the lender he/she is no longer representing but the lender.  

I would rethink who your mortgage broker is as they could cost you lots of money. CMHC is auditing a lot more after closing.  Which leads to fines and a call of the mortgage. 

How much turnkey are you looking for? Buy with tenant and property management in place?

I have access to few in the GTA. 

For Alberta real estate those are pretty good numbers. As for the amortization on the mortgage, some lenders on commercial will do a max 25 yr most are looking at 20 yr in Canada and will require 25-35% down or equity based on their own conservative appraisal. 

Real Estate can be a great way to create opportunities and freedom. It can also be one of the fastest ways to dig yourself into a hole... Educating yourself and being around like minded individuals is key.  Investing in Toronto is _________________, well I have no words... I do invest in the outskirts of the area... Mostly Barrie now. Feel free to connect I'm just up in Newmarket. 

I do hold monthly events. The next event is called Tenants and Training Wheels. It will cover how to screen tenants the correct way and what type of properties "you" should be looking at. 

gary

Hey @Lee Jackson Welcome to the site.. Lots of great people and info here. 

Go Canada Go

You might also run into HST implications. Was HST in addition to the sale of the lots? 

Land is subject to HST so is any sort of flipping. But usually the investors are not aware of it and CRA will come knocking. 

I do have thoughts on this,,,, just don't have time to put them into a post at the moment....

I will check back in... We will see a cooling off but the fundamentals just don't show it for the moment. 

Taxes. Taxes, Taxes. 

Federal Taxes, you or the company would have to pay tax based on Active income which is approx 40% depending on circumstances. 

Also active Flippers in Canada HAVE to pay HST. 13% on the profit 

Flipping in Canada can be done, although a lot of research has to go into the process 

Not familiar with it... However his website is from 2010-2011 and the Lending landscape has changed dramatically since then.  0% is almost non existent for homeowners and not possible for investors in Canada. 

I do have a strategy that allows you to receive approx 7% cash back from the Ont. Gov on brand new homes or Condos.  

@Roy N.

 Some talking points. Not to dispute any info but just providing the facts as I see them here in Toronto. 

RE: vacancy rates. Anyone can find out what CMHC rates are for any size unit. Here is a link to Central Toronto. CMHC RATES

As of today there are currently 3415 condos on TREB for lease. 1,000 have condos have been tenanted since the article came out. 

Her Kijiji point is useless, as you know many Advertisers will advertise the same unit multiple times. Agents will advertise other Agents units multiple times. Which is to say the same unit may be listed on kijiji 20-100 times. 

Rent Controls don't apply to units built after 1991. True, Why are people not using this? They simply do not know,... Sad but true. Their agents do not know to tell them. 

Now for my thoughts,,,,

Still many units are being bought by International Investors. I was in the Bank last week talking with a VP and he mentioned "You have know idea how much money we move into Canada everyday" Of course this is just hearsay with no factual data, however there must be a good amount of truth to it. When I asked another source about HST tax about International Investors he said Yep. They are still buying by the tens to twenty's and more. They are looking for safe place to store their money (compared to where they live). They don't care about quick appreciation, they want to know that it will be valued the same in 5-10 yrs when they look to sell. 

Now about the vacancy, Units are still being rented and made available. Investors are still buying and finding tenants. Is there a HUGE supply of units, YES. Do I think values will drop no. Level of Yes. Yes indeed.