City Land Transfer Tax

The new City Land Transfer Tax will double the taxes a buyer pays at closing. On a $400,000 purchase, the new tax plus the existing Ontario Land Transfer Tax means you will pay $8,200 versus $4475 before. It applies to all Agreements of Purchase and Sale entered into after December 31 of this year. It comes into effect February 1st of 2008. That means you can also enter into a deal after December 31, as long as it closes by January 31 of '08. And of course people who bought condos over the last couple of years that have not completed, are exempt too.

So will this create a sales stampede before December 31? What happens after February 1? Will buyers disappear?

Is the Toronto Condo Market Slowing?

I can tell you that the level of condo sales has slowed in October. Is this seasonal or are more people sitting on the sidelines? I can tell you that any uncertainty always causes a slow down in the real estate market. There was the provincial election and then there is the ongoing fiasco at Metro City Hall. Do you think people are postponing their buy decisions?
This week, we also experienced a couple of multiple offer situations. So there are some buyers who are anxious to get their dream property. But a lot less than in August.
Will the market slow down persist to the end of the year? Or will it pick up in another couple of weeks? You tell me!

CONDOS IN BRITISH COLUMBIA

I have been out in British Columbia on business, and naturally I just had to look at the prices of condos. Last week I was in Whistler and I had heard how expensive properties are there. When I came across a condo for $187,000, I could not believe my luck. However when I read the small print, I learned that the buyer only got to use the unit for 28 days in the winter and another 28 days in the summer. The rest of the time, the property is in the accomodation pool. And the realtors tell me that there is little cash flow left over for the owner from the hotel operator. That means you are buying a 15% interest in the property for $187,000. When you do the conversion, the price is OVER $1.2 million to own it outright. And this is just a small two-bedroom unit. Just what I thought prices were like before my visit.
Driving back to Vancouver, I had a chance to look at waterfront condos Downtown. They are pretty nice but you can expect to pay from $800,000 to well over $4 million. In Toronto, great view properties start at $400,000! You want a 'starter' condo in Vancouver - you know about 500 square feet - well you can pay $350,000. In Toronto you can find the same sized units for just over $200,000.
Anyone think Toronto prices are too high? Anyone want to talk about condo prices in other cities you have visited? I would love to hear your comments.