The new Harmonized Sales Tax could be catastrophic to the already uncertain construction and housing industry in Ontario & B.C.
I'm looking to purchase a home within the next two years but if I don't buy before July 1, 2010, I definitely won't buy a new home, and I'm sure many others won't either.
The HST will lead to an increase in new home sales until July 1, 2010, followed by a steep drop. Fewer new homes will be built, construction jobs will be lost, home values will tank, etc.
The Liberals may argue that the HST in Atlantic Canada had no adverse effect on the housing market. But most homes there can be bought for much less than $300,000, so there is less tax, and those homes qualify for the GST/HST New Housing Rebate. Very few single detached homes in Metro Toronto & Vancouver would qualify.
I suggest the government exempt new home purchases from the Property Transfer Tax, to ensure construction and home values can survive. Colin Hansen stated that under the HST, the extra cost to an $800,000 new home purchase would be $20,200. If the PTT were exempt, that would reduce the cost by $13,000.
The government would still walk away with an extra $7,200 and they should be happy with that.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment