06/09/2026
š£ļøItās easy to fall in love with a propertyās charm, but some are a financial traps.
šØ5 types of houses you should NEVER buy.
1) Houses Flipped by āNumbered Companiesā (Incs.)
Flippers often set up a single-use corporation (e.g., 1234567 Ontario Inc.) just to flip one house. Under Canadaās strict Anti-Flipping Tax Rules, if a property is sold within 365 days, 100% of the profit is taxed as business income. To protect their margins against this huge tax bite, cut-rate flippers are heavily incentivized to cut corners, hide structural damage behind fresh drywall, and hire unpermitted labour. If the house fails later, they dissolve the corporation, leaving you with no one to sue.
2ļøā£ Homes Over 100 Years Old.
We have beautiful historic homes. Hidden costs can destroy your budget. Watch out for ancient plumbing (lead service lines) and active knob-and-tube wiring. Major insurance companies will outright refuse to insure a home with active knob-and-tube. Without insurance, your bank will deny your mortgage on closing day.
3ļøā£ Properties in a Conservation Authority Flood Plain
Whether mapped by the TRCA, NVCA, or your local authority, buying in a flood zone is a major risk. Overland flooding insurance has become incredibly expensive and difficult to get in Ontario. If youāre in a designated flood plain, getting permits from the Conservation Authority for future renovations or finishing a basement can be legally impossible.
4ļøā£ Properties with Underground Oil Tanks.
Common in rural areas and older subdivisions. In Ontario, the TSSA regulates fuel tanks, and environmental laws dictate that the current property owner is entirely liable for any soil contamination. If an old tank leaked into the water table or a neighbourās lot, cleanup and remediation bills via the Ministry of the Environment can easily go past $250,000. If a seller refuses to dig it out and test the soil, walk away.
5ļøā£ Houses with Over-the-Top Custom Features
A 500-gallon built-in fish tank or a highly specific $300k custom kitchen might look cool to the person who built it, but it will reduce your future buyer pool which affects your resale value.
Any of these dealbreakers?