TrueCondos.com – The Best Source for Toronto Condos

New Details on The HST

The provincial government is proposing to harmonize the GST with the PST. This new tax will be known as the HST. This would underlying principle is to increase efficiencies by having just a single tax, however, some goods (like housing) that have never been subject to the PST, suddenly would be.

This has many people inside and outside the Real Estate industry very concerned. The cost of a new condo or home in the GTA could jump overnight by tens of thousands if this new tax was implemented with no concessions. (Resale properties are not subject to the GST or PST).

The province just announced some new proposed changes to be made to how the HST is implemented as it pertains to new housing. Continue reading for the full press release from TREB.

(more…)

Continue reading...

Monarch Introduces “Sales Tax Protection Program”

I received an interesting email from Monarch today that stated:

Unsure of how the Harmonized Sales Tax (HST) will affect your condominium purchase?

Rest assured!

Let your confidence soar with Monarch!

Monarch understands your concerns about the Government of Ontario’s intentions to harmonize the PST with the Federal GST.

To ease your concerns of buying a new condominium and to assure you that the purchase price of your suite is not increased by the harmonized PST, Monarch has implemented a “Sales Tax Protection Plan*” which guarantees you that Monarch will pay the additional tax if the additional “Harmonized” PST applies to the Purchase Price of your Suite while this program is in place.

As the email states, Monarch is offering to pay the additional taxes incurred if the Provincial government goes through with its proposal to harmonize the PST and the GST which will effectively mean that all new homes and condos will be subject to a 13% tax (as opposed to just the 5% GST).

They are the first developer I have heard to do this. I suspect others will follow with similar promises.

Yet another example of a developer trying to instill confidence in buyers and stimulate demand in a stagnante market.

The most interesting thing from my perspective is that it shows that developers (even large ones like Monarch) are getting more responsive and are adapting faster to the marketplace. And they need to. Buyers are looking to buy in developments where they feel that the developer ‘gets it’ and does not have their head in the sand with respect to the current economic conditions.

Current projects by Monarch include Twenty Gothic at High Park, Couture at Bloor and Jarvis, and Vibe in Liberty Village, and Quay West at Tip Top.

I’d love to hear your thoughts. Leave me a comment or contact me directly.

Continue reading...

Assignment Advantages For Buyers

Continuing the Toronto Condo Assignment series, let’s take a look at the key advantages for buyers of assignment listings.

• Lower purchase price. Buying an assignment is sort of like having a time machine and being able to go back in time to purchase a condo today, at yesterday’s prices. Sellers know they have to price their units for less than what the developer would sell a similar unit at today. Savings can be in the tens of thousands compared to buying through the developer, and in some cases the price paid is even lower than what is available on the resale market.
• Lower taxes. If you buy an assignment contract that was originally signed prior to the new Toronto Land Transfer tax kicked in (January 1, 2008), you can save yourself a few thousand dollars in closing costs by not having to pay them even though the closing date is after Jan 1, 2008. Also, with the McGuinty government recently announcing a new Harmonized Sales Tax (HST), buying an ‘old’ contract is a great way to avoid the tax man!
• New condo without the wait. Usually when  you buy pre-sale you are looking at a very long wait to move into your new condo. When you buy an assignment, you don’t have the usual 3-4 year lag time, often occupancy is only months away.
• Tarion Warranty. Since you are buying a new condo, you do qualify for Tarion’s 7-year warranty that comes with all new homes and condos in Ontario.
• Inherit VIP incentives. Many sellers of assignments are investors who purchased during the initial ‘VIP’ stage of the sales process, when prices were lowest and often many upgrades were thrown in by the developer for free that if  you bought today from the developer directly you would have to pay extra for.
• Negotiate from a position of strength. Many sellers are selling because they cannot wait until occupancy or final closing -they need to get their money out now. Negotiating with someone in this position can be advantageous. 

Questions? Leave a comment or contact me.

Continue reading...