You've probably seen it on reality TV. Someone buys a house, renovates it and resells it for a profit.
This is known as a house flip, and as it turns out, Alberta, and Calgary in particular, are leading the country in this field.
Lara Mitchell has worked in real estate for nearly a decade and helped her sister find a home in August.
“But at the end of the day, it turns out she didn't want it. So now I'm flipping it around,” Mitchell said.
She bought the duplex for about $430,000 and has spent $50,000 renovating it.
She hopes to sell it for about $550,000 and make a profit of $70,000.
“So far, we've replaced the flooring. We're also planning on painting it,” Mitchell said.
Lara Mitchell has worked in the real estate industry for nearly 10 years. She has been flipping houses for the past six years and says the market is hotter than ever.
Mitchell has been in the flip business for the past six years and says the market has never been hotter.
In fact, Calgary leads the country.
According to Bank of Canada statistics, approximately 7.6 per cent of homes purchased in the Calgary region were resold within the past 12 months, the highest of any major Canadian city.
Edmonton follows at 5%, followed by Vancouver, Montreal and Toronto at just 1%.
“Toronto's standard home price is under $1.2 million, Vancouver is $1.1 million, Calgary is under $600,000 as of September, so what people are doing is moving here, selling their Toronto home, selling. Save half of that money and buy a bigger house here,” Mitchell said.
“Other cities, especially in the metropolitan areas, have seen housing prices go up so much that it's harder to turn around economically,” said Anne Alcock, a Wahi broker. .
Lara Mitchell has worked in the real estate industry for nearly 10 years. She has been flipping houses for the past six years and says the market is hotter than ever.
But experts say things are improving faster in Alberta, thanks to an influx of people moving to the province for more affordable housing.
And they want to be able to use it as soon as they get here.
“(Actually) we're very busy. We're pretty booked right now. We're going to get houses for next year,” said NLG Linos contractor Neritan Gremshi.
Gremshi has been rebuilding homes for 20 years and says renovations are in high demand.
He's hoping to make a 20 per cent profit on a stripped-down townhouse in the northwest, but says nothing is guaranteed in Calgary's competitive market.
“There's a risk. With flips, you also have to be careful about your budget. You can afford to spend more,” says Gremshi.
And because of the hidden risks, experienced flippers warn anyone planning a project to consult a professional first.
“Be careful what you buy, there are many surprises behind the walls,” says Gremshi.
“When you start opening up walls, you open up a can of worms that need repairs,” Mitchell said.
