With the new mayor elected, we thought we’d discuss the impact of Rob Ford’s campaign commitments on the real estate industry.
His major campaign promise was to repeal the Municipal Land Transfer Tax sometime in 2012.
Although you might think agents are all for getting rid of the tax, it still represents $200 million dollars in revenue per year for the city.
Now that we have come to recognize the costs of buying, the big question is whether the not-so-new land transfer tax has actually stopped or slowed consumers from buying.
In my experience it has definitely affected how frequently my clients are interested in moving. Considering the average price of a detached home in the Beach is nearing $800,000, this is a $25,000 pill they have to swallow. Just under $12,000 of that is City of Toronto land transfer tax.
Certainly a reduction in the tax would help ease the pain. However, if it is going to be removed all together, it will be interesting to see the market just prior to any announcement. Hopefully there is not much warning, otherwise buyers may hold off buying until the date comes.
In any case, it will be interesting. No matter who was elected, following through on a commitment that huge will be tough. Stay tuned…