What Effect Will the New Toronto Land Transfer Tax Have on Real Estate?

Well it is official October 22, 2007 the Toronto City Council voted in favour of the new Toronto Land transfer tax. So as of February 1, 2007 the average Toronto Home of $382,787 is going to cost an additional $4200 in Toronto Land Transfer taxes.

While new home buyers are exempt and rebates are available till the end of the year there is certainly some confusion and buzz in the air about what all of this might mean.

It may very well have an effect on Toronto Real Estate with an expected rise in activity over the next few months and earlier closings in a normally quieter period. Can we expect a trickle down effect to the rest of the GTA? Certainly historically, a rise in prices in one area (which a land transfer is in essence a rise) have generally seen an increase in the demand and price in the surrounding areas.

Durham Region where I predominately do real estate has continued to see overall upward growth in housing sales and prices this past year. And, I see the silver lining to "Toronto's new land transfer tax cloud"and expect it to be a positive effect on real estate in my area...of course it could be because I won't be paying the extra $4200 dollars on an average home, but nevertheless it still is a silver lining!

Jennifer

For more information on the Land Transfer Tax Situation check out these links:

Toronto Star Article
http://www.thestar.com/News/article/226842

Toronto Land Transfer Tax Details
http://www.toronto.ca/finance/revenue_tools.htm

Canadian Mortgage Trends
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2007/10/torontos-land-t.html

For Assistance with Real Estate in Durham Region: http://www.homesforsaledurhamregion.com/

Jennifer O'Malley, Sales Representative
Sutton Group - Status Realty Inc., Brokerage

Office: 905-436-0990 (24 hr paging)

Email: jen@jenniferomalleyrealtor.com
Website: http://www.jenniferomalleyrealtor.com/

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