“Everybody thinks they’re a flipper today,” said Phil Battista, a sales representative in Brampton, Ont.
, who works with investors. “It’s hard to find a detached home to renovate and fix. You have to do a lot of research and digging, but they’re out there.”
As demand far exceeds supply in many parts of the GTA – as well as other major Canadian cities – buyers who are dead set on a detached property are looking to more affordable fixer-uppers.
As a result, the homes that a flipper would have scooped up at a discount are not only becoming more expensive, reducing the profit margins, but becoming fewer and farther between.
“A lot of people are knocking on doors to find these homes," added Battista. "There are a lot of different avenues for investors that aren’t in the MLS.”
He points to the large population of baby boomers who are going to start offloading properties in the next several years. He also says that finding these types of properties requires an insider’s knowledge of the neighbourhood.
“It all has to do with where you’re looking,” he said. "I’m very surprised – anywhere you look today is where you’re going to find an investment.”
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Investors are being cautioned to do a lot more leg work as finding properties to flip in Canada's hot markets becomes more and more difficult.