You may have seen flipping houses on HGTV. Hundreds of Canadians have taken on house flipping across the country to repair and renovate homes, and then to sell them for profit. Many of them are flipping houses in Ontario and specifically in Toronto.

South Etobicoke is a great area to buy properties for house flipping but there are pros and cons to the practice. It’s not easy work flipping houses. It takes a lot of time, effort, and financing, and a lot of variables are present that can turn a simple investment into something complex.

Here is what to look out for when it comes to how to flip houses in Etobicoke.

Is It Hard Buying Homes In South Etobicoke To Sell Later On?

If you have never flipped a home before, there is a learning curve. The actual process of flipping homes in Etobicoke involves researching the market, obtaining financing, finding and buying a property, and repairing and renovating it prior to arranging the sale.

To flip a home successfully, it requires getting the timing right, picking the right home, and having the financing to get the repairs and renovations done.

Individuals who flip houses in Toronto acknowledge the risk. They either make a significant profit, break even, or lose money. Acknowledging the positive side of house flipping in the GTA though, it can be extremely lucrative but, no doubt, will take a lot of hard work to make happen.

New Regulations For House Flipping In Canada

As of January 1, 2023, new property flipping rules came into effect wherein the profits earned from a flipped property are now classified as business income and are subject to be taxed accordingly. Please note that this would only apply to profits earned and not the full sales cost.

This new regulation for house flipping applies to anyone who sells a property that they have owned for less than a year.

If the new regulations apply to you, profits on the sale of a flipped home are not treated as capital gains and are not subject to the principal residence exemption.

If a property is sold after 365 days from when ownership was assumed, the rule no longer applies and, at that time, any profits earned would either fall under business income or capital gains depending on the standard house flipping rules and home selling regulations established in Canada.

Pros And Cons Of Flipping Houses In Etobicoke

Flipping houses have a lot of pros which is why more Canadians are becoming house-flippers.

It can be very lucrative. It can be the start of a legitimate business that brings in reliable income. It allows a person to gain real estate investing experience which can translate to other parts of their life. Flipping a house is less risky than other types of investing.

South Etobicoke is a growing market as well so buying a home in the community today, flipping it, and selling the property for a profit in a couple of years is highly likely to prove to be a very lucrative project.

There are cons to flipping homes as well. Flipping a house is time-consuming. It’s a lot of work. It might not work. House flipping can be stressful as you undergo the renovations and repairs. If you don’t do adequate research, you also don’t know what you might be walking into. Lastly, the holding costs and expenses add up.

There are risks to be aware of as well as ways to mitigate the risks and hopefully put you into profitability.

Connect With A Local Realtor To Help You Find Viable Properties

To find homes for sale in Etobicoke for flipping and with real viable potential, connect with a local realtor.

Adrian + Andrea are experts in South Etobicoke real estate. As the area’s best realtors, we have aided dozens of families and individuals buy and sell homes in the community. If you are looking to flip houses in Etobicoke, let us find you the property with the most potential for profitability.

We know the area better than anyone and are happy to sit down for a conversation with any interested parties. Email us today at info@adrianandrea.com or call us directly at (416) 319-6893.