Majority of Ontarians believe HST applies to Resale Homes!

The introduction of the Harmonized Sales Tax in both Ontario and British Columbia on July 1st, 2010 has been widely cited by real estate professionals and analysts as one of the major factors affecting a slowdown on housing sales. This theory seems to be supported by a recent survey commissioned by the Ontario Real Estate Association (OREA) and conducted by Ipsos Reid, which shows that 56% of the people in Ontario believe the new HST applies to the cost of resale homes. It only applies to New Home sales and related expenses to the purchase of a resale. Where is the media when you need them? An average home purchased in midtown Toronto for $700,000 would of course be harder to sell if confused or uninformed buyers thought they would have to pay another $91,000. on closing! Couple this with the already now increased two land transfer taxes of another approx. $20,000. and these prospective purchasers certainly would come down with a case of “Buyers’ Remorse” very quickly. Guess itÂ’s up to us to educated them.

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