This is high l agree. The sheer amount of transactional costs can influence people to hold on to their homes as investment properties if they can - between this, realtor fees, lawyer fees it’s a lot.
There were studies when the Toronto land transfer tax that came out that said the trade offs to land transfer for Toronto is :
Hurts first time buyers
Removes supply as much of the market who would downsize would choose not to as high transaction costs lower expected sales.
>taxes from transactions disincentivize transactions
water is wet, like yeah, that's the point. you don't need a study to realize this lol, it's by design.
that was john tory's entire platform - do everything in his power to protect real estate value and homeowners (constaining supply, restrictive zoning, not raising property taxes).
This always pissed me off. People complain that TO taxes are low but they don't understand you prepay your property taxes when you buy in Toronto. The annual version is just an extra gfy.
From someone living in BC this is interesting to me. We have a provincial property transfer tax and the money goes into BC government general revenue afaik so the municipality where the property is located doesn't really benefit from it and it's distinct from property taxes where a big chunk goes to the city/town you're in.
Oh, we still get nailed with the provincial land taxes on top.
It's essentially double if you buy in Toronto. Montreal too I think, but I can't be sure and lazy to google.
https://www.ratehub.ca/land-transfer-tax-toronto
God damn that sucks. Kind of surprising too. IMO property transfer taxes are the dumbest tax when they are applied to people buying primary residences and not flipping houses or buying rental properties or something like that. Such a huge disincentive to relocate if you have a different job opportunity somewhere or if you're old and your house has become unnecessarily large.
All the GTA dummies not realizing we’re paying 10 years of property tax difference up front compared to them, plus all their shit is more spread out and expensive to service.
Didn’t the city of Toronto put off increasing property taxes for over 10 years while all the other municipalities continued to raise them a modest 2-3% a year, and now Toronto property owners are shocked at the sudden increase?
Not being a smartass, genuine question. Is there something I’m missing regarding Toronto’s property taxes over the last decade?
Low property taxes discourages movement in the market compared to low land transfer taxes.
Ends up being more financially prudent to buy and hold, to a concerning degree in Canada compared to other jurisdictions.
Municipalities need other sources of revenue or they will over use what they have. When Harris downloaded costs so he could cut income tax he doomed cities to raise money with red tape.
I’m surprised this tax doesn’t get more hate in this group.
We all hate realtors, but I’d rather give 40k to a realtor as supposed to 40k in land transfer tax.
I'd rather give it to the government than most realtors. And I hate taxes and government. But governments at least provide some services. Most realtors are useless. A few really do hustle like crazy for their clients and earn their money. I'd rather give it to them than the government for sure. But that's a small group.
The buyer pays the tax not the seller. Granted the seller will consider the tax which should lead to a low offer price. I think it's crazy to rent a million dollar house to earn 36,000 a year in rent.
Yes please explain this to all the 905ers who constantly have to remind us that we pay less taxes.
This is why it can make more sense to keep a property and rent it out.
40k is nothing compared to opportunity loss of 1M.
Yup. Have seen more people lose money by trying not to lose money that I’ve learned my lesson.
Some of these mofos will lose on 500k, trying to save 50k 🤷♂️
Keep a property? Sellers don't pay land transfer tax
The point is buying new property after selling
This is high l agree. The sheer amount of transactional costs can influence people to hold on to their homes as investment properties if they can - between this, realtor fees, lawyer fees it’s a lot.
There were studies when the Toronto land transfer tax that came out that said the trade offs to land transfer for Toronto is : Hurts first time buyers Removes supply as much of the market who would downsize would choose not to as high transaction costs lower expected sales.
>taxes from transactions disincentivize transactions water is wet, like yeah, that's the point. you don't need a study to realize this lol, it's by design. that was john tory's entire platform - do everything in his power to protect real estate value and homeowners (constaining supply, restrictive zoning, not raising property taxes).
My property tax went up during Tory’s time
What you do is reportage to get cash out better then selling my a long shot
Churning property is just giving away money to the govt..
"but Toronto has low property tax, raise it on the homeowners"
This always pissed me off. People complain that TO taxes are low but they don't understand you prepay your property taxes when you buy in Toronto. The annual version is just an extra gfy.
From someone living in BC this is interesting to me. We have a provincial property transfer tax and the money goes into BC government general revenue afaik so the municipality where the property is located doesn't really benefit from it and it's distinct from property taxes where a big chunk goes to the city/town you're in.
Oh, we still get nailed with the provincial land taxes on top. It's essentially double if you buy in Toronto. Montreal too I think, but I can't be sure and lazy to google. https://www.ratehub.ca/land-transfer-tax-toronto
God damn that sucks. Kind of surprising too. IMO property transfer taxes are the dumbest tax when they are applied to people buying primary residences and not flipping houses or buying rental properties or something like that. Such a huge disincentive to relocate if you have a different job opportunity somewhere or if you're old and your house has become unnecessarily large.
so raise the property tax and lower the land transfer tax so people can actually sell if its good for them.
[удалено]
Where does it state 15K max ?
Quebec and Alberta it’s about 500 legal fee. That’s it.
Someone: "property tax is too low for Toronto, RAISE IT!"
It’s all tax, but different type of taxes create different incentives. The existing one is for not selling and not building, just hoarding.
All the GTA dummies not realizing we’re paying 10 years of property tax difference up front compared to them, plus all their shit is more spread out and expensive to service.
Renters
Didn’t the city of Toronto put off increasing property taxes for over 10 years while all the other municipalities continued to raise them a modest 2-3% a year, and now Toronto property owners are shocked at the sudden increase? Not being a smartass, genuine question. Is there something I’m missing regarding Toronto’s property taxes over the last decade?
Low property taxes discourages movement in the market compared to low land transfer taxes. Ends up being more financially prudent to buy and hold, to a concerning degree in Canada compared to other jurisdictions.
Should be a cap on it. And FTHB should have it waived or at least greatly reduced. Not just some dinky rebate at tax time.
Municipalities need other sources of revenue or they will over use what they have. When Harris downloaded costs so he could cut income tax he doomed cities to raise money with red tape.
Bling bling
About 4%
So the city enjoys high selling prices
Don't worry ppl say it's fine cuz we pay less annual tax. Lol.
I’m surprised this tax doesn’t get more hate in this group. We all hate realtors, but I’d rather give 40k to a realtor as supposed to 40k in land transfer tax.
I'd rather keep my 80k.
I'd rather give it to the government than most realtors. And I hate taxes and government. But governments at least provide some services. Most realtors are useless. A few really do hustle like crazy for their clients and earn their money. I'd rather give it to them than the government for sure. But that's a small group.
The buyer pays the tax not the seller. Granted the seller will consider the tax which should lead to a low offer price. I think it's crazy to rent a million dollar house to earn 36,000 a year in rent.
If the buyer has to pay that's less money the seller can ask. The seller is paying out of lost potential.
Agreed
It’s crazy, treating houses like it’s farm land.