3 Reasons Why Toronto’s Land Transfer Tax Bite Could Help Push Buyers Out To Durham Region

It was interesting to watch, as an outsider, the political maneuvering that 2007_tax_graphic(1)Mayor David Miller in Toronto employed to get is cash-grabbing municipal land transfer tax passed into reality.

In a nutshell, the Toronto city council voted to defer the tax vote earlier this year.  Not to be deterred, the mayor as much said if I can’t collect the tax, I have to cut services.  Hitting them where they live, the government closed community centres and libraries to save money.  Cue public outcry.  Fast-forward to October 22.  The tax vote was re-introduced and passed.  As of January 2007, home buyers will have to fork over thousands more dollars in closing costs to buy their dream home.

How can Durham Region be the beneficiary of this tax? 

  1. Every area in Durham Region has an average price that is lower than the average prices in the Greater Toronto Area.  As affordability becomes the watch-word for the real estate market, Pickering, Ajax, and Whitby are the more affordable, easy-commute alternative to Toronto.  Average price in downtown Toronto: $490,279 (year-to-date, TREB data) vs. Durham Region: $284,485 (year-to-date)
  2. Not only can you get a bigger home for less money in Durham Region, your closing costs are less.  Toronto:  closing costs (lawyer’s fees, etc) + $3700 vs.  Durham:  closing costs + $0
  3. Toronto are on their way to a record year for murders in 2007.  Durham Region, not even close.  The smaller communities offer a safer, family-oriented neighbourhood to raise your kids.

For-sale-signParticularly over the next year, when the new land transfer tax, and a proposed 10 12% jump in property tax, is hardest to swallow, FOR SALE signs in Durham Region could be snatched up by disillusioned buyers.

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