This site uses cookies.

The types of cookies we use, and the way we use them, are explained in our Privacy Policy. By clicking "Accept" or continuing to use our site, you agree to our use of Cookies. More information

Joe Andreoli
Sales Representative

RE/MAX Ultimate Realty Inc., Brokerage
Visit my blog
Visit me on Facebook
Follow me on Twitter
My videos on YouTube
Visit me on LinkedIn
Best Fixed - 1 year
3.19%
Best Fixed - 5 year
3.39%
Best Variable - 1 year
3.59%
Best Variable - 5 year
2.65%
Personal Information
Search For Property
Buying A Home
Selling A Home
Information Centre
Mortgage Calculator & More
Vaughan Real Estate Homes For Sale - Neighbourhoods
Vaughan Condominiums For Sale
Vaughan Commercial Real Estate
VIP Pre-Construction Condominium Projects
Vaughan Real Estate - Community Neighbourhoods
Market Watch Reports
Joe's Referral Zone - A Select Few
Vaughan Real Estate - Vaughan Homes For Sale - Just Sold - Find Out What Homes Sold For in Vaughan
Client Reports

 

How HST will affect Real Estate - A MUST READ

 

Don't be surprised ...Thinking of selling your home? -- well there's always next year.
 
But wait .. next year may be too late. The new 13% harmonized sales tax comes into effect in Ontario on July 1, 2010, and it will likely hit the whole housing market hard. If you haven't sold by July 1, you may well be out of luck. And if you haven't bought by then, well, maybe you'll want to change your mind. And the funny thing is, hardly anyone seems to realize it.
 
 
"There are going to be a lot of very surprised people on July 1," says Jim Flood, director of government relations for the Ontario Real Estate Association. "It's a massive tax increase."
 
 
So here's the bad news: Although resale houses will not be taxed, everything to do with the sale will be -- the house inspection, the agent's commission, the moving costs and legal fees.
 
 
There will even be tax on the home energy audit all sellers are now compelled to carry out thanks to the Green Energy Act the McGuinty government passed in May. And speaking of the home energy audit, why isn't anyone concerned about that?
 
 
Altogether, that means the extra tax on a resale house priced at $369,000 will come in at roughly $2,000 (largely the tax on the agent's commission) and double that and more on many ordinary houses in Toronto, before you even remember you have to pay Toronto's onerous land-transfer tax, too.
 
 
It's enough to make you wonder exactly why you're thinking of moving. Or to get you packing your bags and calling the mover today.
 
 
But it's worse news for new home buyers, although not as bad as it was originally expected to be. Under pressure from groups like the Ontario Home Builders Association, the province has decided not to levy the tax on the first $400,000 of any new home purchase. (GST has been payable for a number of years but builders tend to hide it in the house price.)
 
 
So on a $500,000 house, the extra HST hit will be $6,000 instead of $30,000 (builders get a 2% tax credit that lowers the overall tax hit from 8% to 6%). Without that change, the loss of a potential 21,200 jobs in the GTA alone looked probable. That's enough to scare off first-time home buyers and potentially many other people struggling to make ends meet.
 
 
Easy, according to the OREA's Flood: "There's a lot of ignorance. I don't think the average consumer is even aware of the tax." The HST will impact many things you haven't even thought of yet -- but the housing-related taxes are killers.
 
 
How new tax adds to cost of a sale:
 
 
 
Realtor Commission $1,100- $1,700
 
Mortgage insurance $470
 
Legal costs $80 *
 
Home Inspection $32
 
Title Insurance $15
 
Total $1,747 -$2,297
 
(Estimates based on house less than $400,000, from Ontario Real Estate Association)
adminlistingsprivacy policycontactsite map

Top Remax Agent Vaughan Vaughan Homes For Sale Vaughan Condos For Sale Vaughan Condos Real Estate Listings Centro Square Condos for Sale Homes For Sale Vaughan Vaughan Real Estate Listings Kleinburg Homes For Sale Kleinburg Real Estate Listings Woodbridge Real Estate Agent Woodbridge Homes For Sale Woodbridge Real Estate Listings East Woodbridge Real Estate Listings East Woodbridge Homes For Sale West Woodbridge Real Estate Listings West Woodbridge Homes For Sale Maple Homes For Sale Maple Real Estate Listings Sonoma Heights Real Estate Listings Sonoma Heights Homes For Sale Vellore Village Real Estate Listings Vellore Village Homes For Sale Vellore Woods Homes For Sale Vellore Woods Real Estate Listings Islington Woods Homes For Sale Islington Woods Real Estate Listings National Estates Homes For Sale National Estates Real Estate Listings Weston Downs Real Estate Listings Weston Downs Homes For Sale Rural Vaughan Real Estate Listings Rural Vaughan Homes For Sale Vaughan Valley Real Estate listings Vaughan Valley Homes For Sale Vaughan Grove Homes For Sale Vaughan Grove Real Estate Listings Elder Mills Real Estate Listings Elder Mills Homes For Sale Woodbridge Highlands Real Estate Listings Woodbridge Highlands Homes For Sale Thornhill Woods Homes For Sale Thornhill Woods Real Estate Listings Upper Thornhill Woods Homes For Sale Upper Thornhill Woods Real Estate Listings Patterson Real Estate Listings Patterson Homes For Sale Glen Shields Real Estate Listings Glen Shields Homes For Sale Dufferin Hills Real Estate Listings Dufferin Hills Homes For Sale Brownridge Real Estate Listings Brownridge Homes For Sale Beverley Glen Real Estate Listings Beverley Glen Homes For Sale Uplands Homes For Sale Uplands Real Estate Listings Lakeview Estates Homes For Sale Lakeview Estates Real Estate Lisitngs Crestwood Springfarms Yorkhill Homes For Sale Crestwood Springfarms Yorkhill Real Estate Listings Vaughan Commercial Real Estate Agent Vaughan Commercial Real Estate Listings Joe Team Andreoli

Copyright © 2002-2018. All rights reserved.
Real Estate Internet Marketing by Lone Wolf Technologies.
Lone Wolf Technologies