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Canada's Real Estate Bubble

How to flip houses in Canada with none of your own money: http://stefanaarnio.com/book

There is still lots of money to make in Canada, there are just a few things that you will find that are different from the books and online American advice:

No 1031 tax free exchange

Canada does not have a “Tax free” trade up law on property. In the United States if you sell an investment property with the intent of purchasing a bigger property, you can defer your capital gains tax as long as you are trading up. This is a huge benefit to being in the USA. As of writing right now, in Canada you can tax defer the sale of your personal residence, but nothing else. In addition, the CRA is cracking down on people who are buying and selling too many personal residences.

Tougher banks, 20% down

Canada has the strongest banks in the world. It’s illegal to have a cartel, but we have a banking cartel in Canada and 5 major banks that control the market. These banks demand 20% down for all properties and get insurance from the government institution CMHC to insure all mortgages with less than 20% down. CMHC is a farce when it comes to profits in the billions and CMHC fees are so high that first time home buyers with 5% down lose almost all of their equity to CMHC fees. Such is the power of the almighty Canadian bank.

Limited mortgages and personal credit

With the strongest and most conservative banks in the world, Canadian banks are extremely limited in the credit and mortgages they give out. Many small investors are maxed out after a few mortgages making it very hard to build large real estate portfolios in your personal name…

Read the rest here: http://stefanaarnio.com/2017/08/13/real-estate-investing-in-canada/


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