Real Estate

Ontario Government One Step Closer to Allowing Doubling of Land Transfer Taxes

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  • Nov 2nd, 2015 4:05 pm
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Newbie
Sep 12, 2014
21 posts
Richmond Hill, ON
Homerhomer wrote: It's like saying if I get robbed, so should everyone else ;-)

No, we all should work towards the goal of nobody being robbed, instead of the achievement of everyone being robbed.
Are you wesly snipes? Lol
Deal Expert
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Aug 2, 2010
15196 posts
5016 upvotes
Here 'n There
Homerhomer wrote: It's like saying if I get robbed, so should everyone else ;-)

No, we all should work towards the goal of nobody being robbed, instead of the achievement of everyone being robbed.
I said that tongue and cheek but realize it doesn't look that way.
Deal Guru
User avatar
Mar 31, 2008
13010 posts
3095 upvotes
Toronto
HumansOfToronto wrote: This is what we get for voting for liberals. When will people get that the liberals are the ultimate tax and spenders? They love spending hard working people's cash.

Damn you Harper for being such a terrible leader that you forced us to vote liberal.
Lol, the reward for voting Liberal. I'm in Toronto, so I just hope it happens. It'll be hilarious... "Why is this happening? Why? Oh, election time".. let's elect the same group that Tax and spends!"
licenced wrote: The more press this story gets the more buyers will come out to try to beat the tax. That's how it always works. This only serves to inflate prices faster.

This for me is not the real issue for the impact on prices going forward, it's a side note.

It is that Jan 2016 is the next assessment date and since since prices have increase by as much as 50%+ since the last assessment date, will homeowners be met with sticker shock?

Several municipalities, since last year, have been talking about their own LTT, which means they need the additional funds, as does Toronto and all the rest so, despite the growth in new builds, I'm expecting municipalities to appease homeowners by saying they've lowered property tax rates because the individual property tax bill will increase exponentially when their fall 2016 tax bill arrives.
We'll offer a 0.00011 tax rate discount to offset the new land transfer tax!

Toronto by far has the lowest property tax rates out of the bigger cities,so the argument was justifiable to some degree. The other GTAers have higher tax rates so they'll definitely have to offer some kind of carrot. Either way, it hasn't done anything to dent Toronto's market, so I figure, it won't impact the others.
Deal Addict
User avatar
Sep 16, 2012
3280 posts
489 upvotes
Mississauga
A good idea especially with the older suburbs, once they run out of land, it going to be a lot harder to sustain revenues.
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
at1212b wrote: Lol, the reward for voting Liberal. I'm in Toronto, so I just hope it happens. It'll be hilarious... "Why is this happening? Why? Oh, election time".. let's elect the same group that Tax and spends!"



We'll offer a 0.00011 tax rate discount to offset the new land transfer tax!

Toronto by far has the lowest property tax rates out of the bigger cities,so the argument was justifiable to some degree. The other GTAers have higher tax rates so they'll definitely have to offer some kind of carrot. Either way, it hasn't done anything to dent Toronto's market, so I figure, it won't impact the others.
they need to triple the land transfer tax.

it wont make a dent to the market. so why not doing it.
Deal Addict
Dec 24, 2007
1993 posts
513 upvotes
Toronto
+1

Toronto has been paying this ridiculous price for years but people are still buying and bidding for houses $100-250k over asking.

If this goes through we will be seeing a buying spree with a higher house price increase and bidding wars just north of Steeles, just like in Toronto before the additional LTT went through.

Homes will be for the rich soon, and your average hard working income family will suffer by this.

Cheers!
eonibm wrote: You can easily have a purchase done for $795+disbursements+HST in Toronto. Disbursements for the title asearch, registration of a deed and 1 mortgage, execution certificates, title insurance and office expenses add up to another $615-$715 so that's about $1,700. Then there might be fees to arrange the mortgage. Moving expenses are a wild card depends if you rent a truck yourself, get '2 Guys and a Truck' or something higher end, but I'd say you are going to spend a minimum of about $1,000 to get a have a half-decent move but likely much more.

So, on a $1M house in Toronto you are up to $32,200+$2,700= $35K absolute minimum cash out of your own pocket and that doesn't count any painting, electrical work, changing of fixtures, landscaping (everyone seems to do some or all of that) or anything else you might want to do to the place you buy when you move in.
Thread started in 2016 - 1927 fully gutted and renovated 2 storey detached home in the big T.O. - small projects still in progress.

RFD priceless!
Deal Guru
User avatar
Mar 31, 2008
13010 posts
3095 upvotes
Toronto
HumansOfToronto wrote: This is what we get for voting for liberals. When will people get that the liberals are the ultimate tax and spenders? They love spending hard working people's cash.

Damn you Harper for being such a terrible leader that you forced us to vote liberal.
daivey wrote: they need to triple the land transfer tax.

it wont make a dent to the market. so why not doing it.
Seriously... hey, the land transfer tax will cause our house to appreciate more! We'll now become a billionaire instead of a millionaire! And we can always borrow extra from the bank or lender.
Deal Addict
Feb 5, 2009
2808 posts
940 upvotes
Newmarket
I have a hard time wrapping my head around the fact that so many of you are ok with tax grabs.
Deal Addict
Oct 29, 2010
4475 posts
811 upvotes
Homerhomer wrote: I have a hard time wrapping my head around the fact that so many of you are ok with tax grabs.
+1

Most of the population voted those crooks into government, sadly most people are ok with tax grabs.
Deal Addict
Dec 11, 2010
1700 posts
137 upvotes
I'm fine with extra tax, social services aren't free.
Deal Addict
Dec 11, 2010
1700 posts
137 upvotes
Plus, if $20,000 extra is unaffordable, I'd say you probably shouldn't be buying a house in the first place.
Deal Addict
Dec 27, 2006
1985 posts
978 upvotes
insurance1 wrote: I'm fine with extra tax, social services aren't free.
+ the free healthcare system.
Deal Addict
Feb 5, 2009
2808 posts
940 upvotes
Newmarket
I guess with all the income, sales, duty, excise, import, export, property, land transfer and all other taxes, fees and levies that are too many too mention one more tax really doesn't matter, they already take most of my money, little more won't make any difference.
Deal Fanatic
User avatar
Apr 20, 2011
5310 posts
484 upvotes
Vancouver
Homerhomer wrote: I have a hard time wrapping my head around the fact that so many of you are ok with tax grabs.
Think of it this way. Every time you pay it, or the GST and not get anything for it, think of it as helping support people on welfare lol
Deal Guru
User avatar
Mar 31, 2008
13010 posts
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Toronto
popbottle wrote: Think of it this way. Every time you pay it, or the GST and not get anything for it, think of it as helping support people on welfare lol
It's a great way to keep them folks high or drunk so they don't come robbing you or thiefing from your house.
Deal Addict
Oct 29, 2010
4475 posts
811 upvotes
insurance1 wrote: Plus, if $20,000 extra is unaffordable, I'd say you probably shouldn't be buying a house in the first place.
There is a big difference between 20k cash and 20k on top of the mortgage.
Moderator
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Aug 20, 2009
9827 posts
5934 upvotes
insurance1 wrote: Plus, if $20,000 extra is unaffordable, I'd say you probably shouldn't be buying a house in the first place.
I think you need to offer some foundation for that comment. An extra $20000.00 is a significant amount of money, not just in terms of its face value today but in terms of lost opportunity cost for principal mortgage reduction to offset interest charges.

Speaking on a more general level I don't think someone being "make it or break it" over $20,000.00 on an already costly transaction is unreasonable, we need other many other factors to make that conclusion.

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