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...

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Tags:
taxes real estate

Comments 9 New Comment

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Rainer
47,610
David Yeoman
Mortgage Intelligence Inc. (David Yeoman)

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.

July 31, 2007 04:20 PM
Rainer
7,370
Darren St.Jacques
Nook 'n' Cranny Home Inspections

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.

August 01, 2007 12:21 PM
Rainmaker
145,422
Charlene Storozuk
Home Stager - Burlington Ontario
Dezigner Digz
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!
August 01, 2007 12:09 PM
Rainmaker
98,315
Paul Viau
High Shots Photographaphy , My Home Exposure
High Shots Photography , My Home Exposure
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!
August 01, 2007 09:05 PM
Rainmaker
153,793
Marjorie & Doug McKay
Calgary & Chestermere - 403-207-1776
RE/MAX Real Estate Advocates

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...

August 01, 2007 11:06 PM
Anonymous
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Rainer
18,327

Lucie Quigley

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