Toronto Real Estate Sales Killed By Land Transfer Tax

By
Real Estate Agent with Re/Max Ultimate Realty Inc. Brokerage

Perhaps "killed" is an exaggeration but the patient has been severely wounded. In February 2008 the City of Toronto introduced a Land Transfer Tax payable on all Toronto Real Estate sales. This is in addition to the already punishing Provincial Land Transfer Tax. The result has been a crippling effect on Toronto house and condominium sales as well as lowering average prices.

 Recent Study

 A recent study entitled  "Sand in the Gears - Evaluating the Effects of Toronto's Land Transfer Tax" says that the Toronto land transfer tax is responsible for a 16% drop in the number of single family homes sold after January 2008 and a 1.5% reduction in the value of a house, which works out to an average of $6400 per house.

The study also estimates that approximately 3500 families stayed put, in houses that are too big, too small or too far from their place of work or school requirements.

The Toronto real Estate Board stated that if condominiums in Toronto were added, 5000 plus resale transactions were lost in the first year of the tax.

You could say the tax resulted in a loss of freedom for some.

 Local Politicians Opinion

Budget Chief and City Councillor; Shelley Carroll said that taxing the sale of homes takes money "only from those who can afford it, when they can afford it"

What do you think home buyers and home sellers?

Can you afford this tax on top of all the other costs associated with putting a roof over your head and that of your family?

We often hear politicians proclaiming peoples " right to a roof over their head".

Does this tax act as a deterrent to that right?

Let us know what you think.

Do you agree with the City of Toronto Land Transfer Tax?

Do you disagree with the City of Toronto Land Transfer Tax?

Or do you simply not care?

If you are thinking of buying or selling Toronto Real Estate why not put my 24 years of experience to work for you. Stop by my site at www.johnlavin.ca and get to know me.

Comments (1)

Sylvie Conde
Sutton Group-Associates Realty Inc., Brokerage - Toronto, ON
Broker, Toronto Real Estate

Absolutely right ... I think the land transfer tax brought on the recession (in Toronto, anyway). :)

I'd like to see what good uses the City of Toronto has put that money to. 
They should take it away, so people can come back and start buying in the City again.

 

Mar 03, 2009 08:01 AM