Using the money gained by selling our property, is it possible to re-invest it in another property in Canada?
Yes, of course. In order to achieve success through real estate investing, it is important to go through a number of smaller successful deals and build up to one or more large successful deals. One of the unique aspects of real estate investing is that by refinancing the property later you can withdraw much, if not all, of your capital without an immediate tax liability and while still maintaining control of the asset. The ideal situation is when you have removed all of your original investment capital while you still own the asset. You will still profit from the asset’s future growth and you are then free to re-invest that original capital in yet another asset. This is the reason behind why CCA aims for a return over a mid to long-term rather than the immediate profit through a quick resale.
