CTV Morning Live: Mortgage Minute - June 13
Frank Napolitano joins Lianne Laing on this week's episode and discusses investing in real estate and whether there is an opportunity to make money by flipping homes.
On this week's episode, Frank and Lianne discuss investing in real estate and the potential of flipping homes. Frank confirms that there is opportunity to make money by investing in real estate, but not as much by flipping homes. South of the border, flipping homes is quite the popular trend, but due to regulations here in Canada, it is much harder to do. Banks who foreclose on a home must sell the home for market value, which will highly reduce the overall profit you could generate by purchasing the property and re-selling it. Factor in other expenses, such as legal fees, land transfer tax and capital gains; you're not left with much.
Moving on to the next topic, Frank elaborates on investing into your own home by completing renovations. He notes that it is important for you to do the "math". Most Canadians believe that by putting in a considerable amount of money into renovations will result in your home's value increasing at least a dollar-for-dollar value of your renovations, if not more. Unfortunately this doesn't quite always happen.