14: A Huge Market Opportunity

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EPISODE DESCRIPTION

In this episode, Brandon shares a huge market opportunity that's happening right now thanks to the capital gains tax, and how you can take advantage of it for less money than you think.

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Episode Transcript

(00:07):
opportunity that I think is reallybig in Canada, especially in the
Ontario market, and that'sregarding cottage properties or
second homes.
So I'm sitting in my new cottage
on a vintage floral chair the oldowners left behind.
Gotta love those kinds of finds.
And I'm super stoked to be here
and it's a big opportunity to buyan awesome place at a discounted

(00:30):
price.
And so let's dive first into why
there's an opportunity.
So the federal government has come
after owners of multipleproperties, business owners, the
works, they're after everyoneright now, regarding the capital
gains tax.
And so essentially, if you owned a
second home like a cottage, andthen you sold it, you would be
taxed at a higher rate after June15th, once that passes.
So some people hear this news andhave a doom and gloom mindset and

(00:55):
are now trying to sell off theircottage properties.
And so they're selling them at adiscount.
There's also the other side ofthings where people have bought
these properties with lines ofcredit on their existing home and
with rising interest rates,they're now at a point where they
can't sustain it.
So they're just happy to free up
the cashflow and get rid of theseproperties.
So one person's pain is anotherperson's pleasure.
And this creates a buyingopportunity where you can get

(01:17):
these at a really great price witha lot of awesome features thrown
in there as well.
So next piece comes to really how
do you qualify for this?And a lot of people have this
mindset that when it comes tobuying a cottage or a second home,
you need to put down 20% andthat's not true.
So there is a program, it's aninsured program, as long as the
home or vacation property is goingto be occupied by you or a family

(01:41):
member and no rental income isbeing used to qualify, you can put
as little as 5% down.
So $500,000 cottage property, for
example, you can buy with aslittle as $25,000.
Now you still need to qualify andyou'd have to qualify without that
rental income.
But if you have the means to do
it, it's a great opportunity tograb up some of these properties.

(02:01):
And I'm using the example of acottage today because I'm sitting
in mine and it's relevant rightnow.
But it doesn't necessarily have tobe a cottage.
It could be for a house in acommunity where your kid is going
to school.
It could be a home near your
existing home for aging parents sothey're more comfortable.
Could be for a sibling or an auntor uncle who is struggling and
just needs your support.

(02:22):
So those are several scenarios
that would also play into this.
These programs allow as little as
5% down.
They're insured so you get the
best possible rates out there.
And it's opportunities to buy up
some of these properties thatother people are scrambling to get
rid of.
So think long-term.
The capital gains piece onlyreally applies to you once you
sell.
If you're going to hold this asset

(02:42):
for your family enjoyment or justto support your family, it doesn't
really matter.
Just enjoy the property, get the
most out of life and keep buildingyour wealth through real estate.
Have an awesome day.
Cheers.