Waiting for the Repeal of the Miller Land Transfer Tax….

iStock_000002998026XSmallIn the past few weeks the question Toronto Buyers have been asking is “should we be waiting for Rob Ford’s  new City Council to repeal the Toronto Land Transfer Tax ?”

Whether it was just another political promise that will never be realized, good intentions to the contrary, will the savings realized by the repeal of the tax actually provide a substantial benefit to wait?

The Tax launched in February, 2008 which on a $400,000 property has the Buyer paying $4475 to the Province and $3725 to Toronto account for $8200 or 2% or the purchase price. Not having the amount due to the City would save a Buyer approximately 1%….so why not wait?

As pointed out in recent posts from both the Toronto Real Estate Board  and the Canadian Mortgage and Housing Corporation , there has been a 5% increase in prices over the past year, so waiting to save 1% does not make a lot of sense. Also and most important, Buyers and Sellers are moving because the property that they live in no longer suits their needs. Although price fluctuations are part of any market, the reality of the real estate market is mostly based on the need to up-size, downsize, change school districts or moving closer to new jobs and opportunities.

If Rob Ford can get the votes he needs and find the 200 million dollars that the Land Transfer Tax has added to the City budget, then great for him. I have always had a problem with the TorontoLTT because it singles out a group of city taxpayers to fund services that are enjoyed by all of us. At the same time the Toronto Land Transfer Tax has encouraged some Buyers to choose between the 416 and the 905 regions.

Wait if you want, but you may be disappointed with the end result. Taxes are seldom repealed once they are bringing substantial funds to Government….

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