What are they thinking?

By
Home Stager with HOLT modern Home Staging

 Last night Toronto city council voted in a 1.5% land transfer tax on the sale of residential and commercial property. So what does this mean to home buyers? Starting in January the purchaser of an average Toronto home, priced at a little more than $380,000, would pay $8,488 in total land transfer fees, up from $4,244.

I am not a Realtor nor am I a tax guru but come on! How can this NOT have a negative effect on the Toronto real estate market?

Your thoughts...

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
taxes real estate

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the car to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
399,081
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
They the city council thinks they have better ways to spend the money than the owner would. This is most likely not the only person they like to tax. It will begin to slwo growth as a company may not decide to transfer some there. It may be a boom to the areas outside of Toronto. The council will out of office by then, the real question is where does this money go. 
Jun 26, 2007 09:06 AM #1
Rainer
51,996
Wayne McMullan
Royal LePage ProAlliance Realty - Belleville, ON
Quinte Real Estate
Lucie, I heard that the 1.5% was not definite - it could end up at 2%. I believe they also approved a vehicle license tax as well. Unbelievable.
Jun 26, 2007 09:18 AM #2
Rainmaker
399,081
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
The city of New Orleans put a transfer tax of $375 on a real estate sale. People are still talking about it and cursing the people who put it own. Most have however been convicted of various bribes and theft. They are going to prison as we speak because of a Republican Federal Attorney. This has nothing to do with your tax but things could go that way when there is this much money involved. I view this as stealing from the sellers, but thats my take on it several thousand miles away.
Jun 26, 2007 09:42 AM #3
Rainer
18,327
Lucie Quigley
HOLT modern Home Staging - Halifax, NS
Can you believe that someone on the council said "If you can afford a house for $400,000 then you can afford the tax".
Jun 27, 2007 10:26 AM #5
Rainer
47,610
David Yeoman
Mortgage Intelligence Inc. (David Yeoman) - Barrie, ON

Although the tax will certainly have an impact on the housing market as of now this bylaw has not been passed.  If I am not mistaken the vote was 23 to 22 to postpone the decision.

Jul 31, 2007 04:20 PM #6
Rainer
7,370
Darren St.Jacques
Nook 'n' Cranny Home Inspections - Hamilton, ON

On a positive note:

That means more people will be buying homes in other areas, like Hamilton!

(More inspections for me, **smile**) OK, on a serious note, I think it is unfair and you know it will soon be followed by other cities as well. Like there aren't already enough costs associated with home ownership. It will make a dent in everybody's pockets with a ripple effect throughout the economy.

My understanding of the tax is to assist in the lack of money to upgrade the existing infrastructure that cannot meet the expanding growth of new homes/condos being built.

Jul 31, 2007 08:03 PM #7
Rainmaker
145,471
Charlene Storozuk
Dezigner Digz - Burlington, ON
Home Stager - Burlington Ontario
I agree with you Lucie.  A land transfer tax increase of that size can only hurt the real estate market in T.O.  I read, as Dave did, that a decision has been postponed.  Hopefully they will reconsider!
Aug 01, 2007 12:09 PM #8
Rainmaker
102,685
Paul Viau
High Shots Photography - Halifax, NS
High Shots Photography
We have a 1.5 % deed transfer tax in Halifax. We have had it so long i guess we are used to it. typical tax grab!
Aug 01, 2007 09:05 PM #9
Rainmaker
156,563
Marjorie & Doug McKay
RE/MAX Real Estate Advocates - Chestermere, AB
Calgary & Chestermere - 403-207-1776

Ed of Alberta has suggested the same thing.  This will further hurt families and make it more expensive to buy a home.   It will also make it easier to stay in the same home and renovate..  Do they have something against the real estate industry...

Aug 01, 2007 11:06 PM #10
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
18,327

Lucie Quigley

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information