House Flipping (Montreal and PQ)

This may be a long shot but,

Does anybody know the processes for the real estate game in this province?

From:
-becoming an agent to ( I know this one but I want some personal experiences)
-becoming a broker to
-opening own firm/brokerage house to
-flipping house in the Quebec market??


all comment appreciated

Thanks,

-J

Wrong place to be flipping just a piece of advice
there is ALWAYS money to be made however there are other much more lucrative and higher return investments that can be done utilizing equity on homes and mild risk investments.
tip: look for areas of heavy economic downturn

sspikey said:

Wrong place to be flipping just a piece of advice
there is ALWAYS money to be made however there are other much more lucrative and higher return investments that can be done utilizing equity on homes and mild risk investments.
tip: look for areas of heavy economic downturn

Click to expand...

Never said I wanted to flip, just looking for the procedures, governmental regulations and laws involved.

I heard that people dont flip here because you have to live in the house for at least a year...

You are wrong, if you don't live in the house for a year(there are other ways but I'm not getting into this) you have to pay capital gains.

RWDLover1 said:

You are wrong, if you don't live in the house for a year(there are other ways but I'm not getting into this) you have to pay capital gains.

Click to expand...

precisely Federal Income Tax laws

The home has to be your primary residence for the year in order not to pay any capital gains on the sale.

Although if you plan on only flipping the house in 2 or 3 years here is a formula you can use for a tax exemption:

Capital Gain x [(1 + # of years it was your Principle Residence) / # of year you have owned the House]

this I know also,

what about becoming a co. that buys and sells. what are the restrictions on this?

jbizzle said:

this I know also,

what about becoming a co. that buys and sells. what are the restrictions on this?

Click to expand...

If you are a Co. you will pay taxes as though the sale was normal business revenue.

How much taxes you pay depend on your tax bracket etc...

Instead of paying 50% on capital gains you will either end up paying 30 - 40% (once again depending on tax bracket) or maybe even a little over 50% if you are making over $100,000+.

i never got a straight answer for this and never researched it but what is the highest personal income tax bracket and its %?

sspikey said:

i never got a straight answer for this and never researched it but what is the highest personal income tax bracket and its %?

Click to expand...

here is the federal:

* 15.5% on the first $37,178 of taxable income, +
* 22% on the next $37,179 of taxable income (on the portion of taxable income between $37,178 and $74,357), +
* 26% on the next $46,530 of taxable income (on the portion of taxable income between $74,357 and $120,887), +
* 29% of taxable income over $120,887.

jbizzle said:

This may be a long shot but,

Does anybody know the processes for the real estate game in this province?

From:
-becoming an agent to ( I know this one but I want some personal experiences)
-becoming a broker to
-opening own firm/brokerage house to
-flipping house in the Quebec market??


all comment appreciated

Thanks,

-J

Click to expand...

I will become an real estate agent in about one month. I enrolled in the ACAIQ courses. There are 5 sections that are covered:

Property Law
Mathematics
Real Estate Appraisal
REBA (Real Estate Brokerage Act)
Preparing Contracts

After successfully passing these courses this entitles one to register to write the ACAIQ exam. If one scores 70% or higher one will have their real estate license.

*Please note, prior to writing the exam, one must find a broker (A broker is someone such as Remax, Sutton, etc.) who will sponsor them. Without a sponsor, one will not be permitted to write the exam. Most importantly, when one agrees to be sponsored by the broker, they are committed to pay monthly fees to the broker. These rates could range from $400-600/month even with no sales since this is a profession that is based on 100% commissions.

To become a broker, one must be an agent for at least three years plus register for more courses offered by the ACAIQ.


I hope this helps !

Hummer2005 said:

To become a broker, one must be an agent for at least three years plus register for more courses offered by the ACAIQ.


I hope this helps !

Click to expand...

Sounds good! thanks! and what about buying/selling houses? can brokers do this as their own co. flipping houses? and what taxes do they pay if they do this? corporate or capital gains tax?

you can fill out the forms for purchase yourself no agent needed.
they (selling agents) have to (law) take it & show it to their clients
to be refused or countered.
^ at least in ontario.

anyways theres alot of self teaching involved in that & one must be careful as it's a legally binding offer.

'flipping' imo is the riskiest type of realestate investment plan.
markets go up-down, did you get a good deal, can you sell for a profit, etc.
if you plan to hang onto it, rent it out, etc. your gonna get income + appreciation in prop value over time

Hummer2005 are you an agent now, if so, which broker are you with?

In regards to flipping houses, I wouldn't do it here because of the risk, political uncertainty and the taxes in Quebec. Your better off, buying something like a condo, multiplex or house and renting it out to eventually profit or sell for profit etc.