HST - Harmonized taxes has several impacts. The main impact will be on new homes which is currently subject to GST unlike resale homes. Currently on new homes, buyers are paying reduced 3.2 GST but next year will need to pay an additional 8% in taxes and HST on all closing costs which is a significant burden especially on the group of first time buyers.
The biggest question I get - how will HST impact me in a resale home.
The home will not be subject to HST but the burden will be with the closing costs - legal fees, moving costs, home inspections, title insurance, home insurance premiums, and Realtor commissions. When some buyers move into their new home they want to renovate, purchase new appliances, furniture, etc. HST will be a burden on the home buyers that are already struggling to get in an already expensive market.
The housing market will be one to watch next year for sure with the HST coming into play and increased interest rates.
Monday, October 19, 2009
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