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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.

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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.

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