Today, the Toronto Real Estate Board will host the second of two Regional Economic Summits in York Region (Durham Region hosted on July 15) to discuss a market update as well as a TREB-commissioned consumer survey conducted by Ipsos Public Affairs.
MayHousing Market Charts Available
Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 10,196 sales through TREB’s MLS® System in May 2017 – down by 20.3 per cent compared to 12,790 sales reported in May 2016.
While monthly condo maintenance fees won’t directly be subject to Ontario’s new HST (harmonized sales tax), many condo owners have already felt the impact of the HST.
If you’re a condo owner in Oakville, Mississauga or the Greater Toronto Area, you should know that much of what is currently covered by a condominium’s monthly common element fee will be subject to HST. Everything from utilities (water, heat & hydro), service contracts for cleaning, interior maintenance or renovations to common areas and elements, exterior maintenance like lawn/garden care and snow removal will all be subject to HST.
With less than a week to go until the July 1st d-day for HST in Ontario, many condo owners are still unaware of exactly how the HST will affect them. If you’re one of them, you’re not alone – the government has been less than transparent about the details of HST and potential rebates that may help Real Estate buyers.
Many condominium corporations have already had to budget for the HST’s anticipated impact on their expenses for the condominium. Some of the condo buildings I’m involved in have seen increases in common expenses as a result. One building in Mississauga sent out their budget and notices of increase for condo fees this month and ironically the increase for the condo fees is exactly 8%.
Much of the nitty gritty of the HST is still in a heavy grey area.
This much is clear – the purchase price of new condos in Ontario over $400,000 will be subject to HST. So all you condo lovers drooling over the new condos in Toronto, Mississauga & Oakville pay attention and budget wisely! The purchase price isn’t the only part of buying a condo that will be affected. Associated costs of buying a condo including Real Estate commissions, legal fees, movers, status certificates and home inspections will all be subject to HST as well. The Ontario Real Estate Association says these associated costs could add more than $2,000 in new tax for a resale house priced at $360,000.
Condo buyers opting for a re-sale condo will benefit from not having to pay HST directly on the purchase price.
How is your condo board preparing for the HST? Comment below & let’s share information…
If you have a question about the HST and how it will impact you as a condo owner, buyer or seller email me or call me at 416-254-8468 to discuss your situation.
Ryan is a licensed Real Estate Broker with Town-City Realty Limited, Brokerage and has been listing and selling condominium properties in Oakville, Mississauga & throughout the GTA for more than 10 years