In any market, real estate investing can be a tricky task. But as an investor here in British Columbia, there are unlimited ways to profit from these investments. Your personality must be one in which decisions are made easily. The goal is to surround yourself with people in the industry that are reliable, successful and confident. Without confidence in what you are investing in, the deal will fall through. I am not suggesting blind confidence with a project that is obviously unprofitable. I am suggesting an educated approach and looking at all of the factors without the use of raw emotion.
One question is the matter of timeline. Some real estate investors here in the Greater Vancouver and Lower Mainland area do not want to hold property for a long time. If you don’t like the idea of dealing with tenants and renting out your property for the long haul, then your investment option could be flipping.
A flipper will buy property and then sell it almost immediately after the purchase process is complete. In some cases this type of real estate investor may already have another buyer lined up to pay more. The longer the home is up for sale, the less profits there are to be made. Mortgage payments will come due and a vacant property is often a liability.
If property is held long enough it increases the chances of increasing that properties value. The profit from simply flipping the property is often times a tiny fraction of what you could make off it when held for longer than one year. At your leisure, you can go ahead and sell your property for more then you would have made during a simple flip. Approaching real estate with this sort of longer term mentality is more secure and also saves on capital gains tax.
In BC, you can sell one home per year. More than one home per year and the profit you make off the sale of your home can be taxed as income for the year. If you do not wish to deal with tenants during this one year period there are plenty of property management companies located in Vancouver, Burnaby, Surrey, New West, Coquitlam, Delta, Langley, Aldergrove, Abbotsford, Mission and Chilliwack. You must prioritize your time and understand that time spent managing tenants could be wasted time. Again, surround yourself with a highly motivated team that has clear objectives for the year.
There are benefits to both strategies. People have made tremendous amounts of money the last 10 years flipping and holding property here in Canada. Educate yourself and surround yourself with your future team today.
Shane And Sheleana work together to educate home buyers and sellers in Delta. BC is a beautiful place! Find a Realtor who knows how to showcase it.
Flipping BC Investment Properties
