Changes to Toronto Land Transfer Tax Effective March 1, 2017

IMPORTANT Changes to Toronto LTT APPROVED - Effective March 1, 2017 Excerpted from TREB News February 16, 2017 -- City of Toronto Council has approved changes to the Toronto Land Transfer Tax that mean additional Toronto Land Transfer Tax costs for some home buyers with a closing date on or after March 1, 2017, when it will be harmonized with the provincial LTT. Click here to see the detailed City of Toronto Notice on the "original" proposed changes posted in December 2016 (NOTE: changes made to original proposals as per below). Status The following changes to the Toronto Land Transfer Tax were considered and approved by Toronto City Council on February 15, 2017. The changes are effective AS OF MARCH 1, 2017, for real estate transactions closing on or after this date: Added an additional LTT of 0.5% of the value of a residential or non-residential property from $250,000 to $400,000 (an additional $750) Added an additional LTT of 0.5% of the value of a residential property above $2 million Added an additional LTT of 0.5% of the value above $400,000 of a non-residential property Increasing the maximum allowed First-Time Home Buyer Rebate to $4,475, up from $3,725 Amended the first-time home buyer rebate program eligibility rules to restrict rebate eligibility to Canadian citizens or permanent residents of Canada TREB Efforts Achieved Significant Concessions – First-Time Buyers Protected TREB, with the support of the Ontario Real Estate Association (OREA), undertook a comprehensive campaign to oppose the proposed changes. As a result of these efforts, significant concessions were made to the proposals that went forward for City Council's consideration as follows: Under the original proposal, first-time buyers would have been forced to pay an additional $475 in Toronto LTT. However, TREB pushed for an increase in the rebate from $3,725 to $4,475, meaning first-time buyers will not face an increase. Many first-time buyers would have lost eligibility for the first-time buyer rebate entirely, meaning a total LTT increase of $4,475. TREB pushed back and all first-time buyers will be eligible for a rebate.  As a result of TREB's efforts, first-time home buyers will NOT see any change.

Is A Shortage of New Homes Forthcoming in the GTA?

Excerpted from The Toronto Star

GTA builders warn of looming housing shortage

Census data reveals the community has grown 30 per cent in the last five years.

By Tess Kalinowski
Real Estate Reporter

Fri., Feb. 10, 2017

There’s a housing supply shortage looming in the Toronto area. That’s the warning the head of the association for new home builders has been issuing every chance he gets in recent months.

Even with a “making-it-happen attitude” it will take five to seven years to get the supply of new homes up to a healthy level again, said Bryan Tuckey of the Building and Land Development Association (BILD).

The inventory of new homes for sale in the Toronto region has sunk to historic lows, he said. There are various reasons, including lengthy provincial approval times for water and waste water servicing that’s required before a single toilet can be flushed in a new neighbourhood.

Read more:

Census shows big population gains in Toronto, Milton and Brampton

Article Continued Below

Soaring Toronto housing sparks interest in co-owning

Figures from the Toronto Real Estate Board suggest a similar shortage exists on the resale market. People aren’t listing their homes because they worry about what they’ll be able to afford among the region’s soaring prices.

If government and builders don’t figure something out soon, Toronto is heading down the road of cities like London and San Francisco, says Tuckey.

“You have the most affluent parts of British society not being able to afford a home in London or in San Francisco where we see jobs being lost because people can’t afford to live in communities where they want to work and play and live,” he said.

The census data released Wednesday reinforce his concerns, said Tuckey.

It shows Toronto’s population grew 6.2 per cent between 2011 and 2016, above the national average of 5 per cent. But that growth was exceeded by several communities outside the city including Brampton, Caledon, King, Markham and Bradford.

For the second consecutive census, Milton has proved to be the GTA town with the biggest boom. It registered 30 per cent population growth in the census period.

“We talk a lot about Toronto, and still, about 65 to 70 per cent of the growth is going to be outside Toronto. Plus, it’s family oriented growth, so communities like Oakville, Brampton, Milton, Bradford, West Gwillimbury where growth was intended to happen,” said Tuckey.

He’s not surprised that those families want what the industry calls ground-related homes — townhomes, semi-detached and detached houses.

Some will happily sacrifice space for affordability. Tuckey calls townhomes the new single-family home even though they don’t usually have big yards for the kids to play.

To get that ground-related property, many are moving outside the city to the booming 905-area communities.

In Milton, three-storey stacked townhomes and the more traditional two-storey towns with basements are the highest demand category among home buyers, said Royal LePage agent Amy Flowers, whose business is flourishing in the town that now stands at a population of just over 110,000.

Those homes run between $500,000 and $600,000 on average for about 1,200 square feet of living space.

Toronto buyers in search of the holy grail of GTA housing are typically paying between about $750,000 and $800,000 for that detached house with a yard, said Flowers.

“Our buyer demographic is interesting,” she said. “We’re one of the only towns in the country where our median age is actually going down.”

In little more than a decade, the influx of families has transformed Milton. The old theatre has closed in favour of a multiplex near the highway. There’s a Wal-Mart.

When Flowers moved into town about 15 years ago, it took about 10 minutes to drive across Milton. Now, with traffic, it is double that.

When it comes to buying homes, Milton has its share of big-league competition. On Thursday there were only 68 freehold listings and eight condos listed on the TREB’s Multiple Listings Service for Milton. Of those, four of the houses and half the condos were already conditionally sold.

Like Toronto, list prices have pretty much lost any bearing on the final sale amount and competitive offers are routine, said Flowers.

Your Home As An Investment- by the TREB President

Excerpted from TREBWire

Home Ownership Continues to be a Great Investment                                                 

By Larry Cerqua, TREB President
There’s no denying that home ownership has always been a great investment, and in today’s market, that statement continues to ring true. From building your wealth, to giving you a sense of community, owning a home can provide you with many benefits.
Becoming a Homeowner in Today’s Market
As home ownership continues proving to be a great investment, people are looking at more creative ways to get into the market. Consumers are teaming up to buy with family and/or friends, families are looking to alternative housing options that are offered beyond your traditional detached property, perhaps a townhouse or even a condo is more suitable to their lifestyle, and some are even looking to areas/neighbourhoods outside of the more well-known “hot pockets.”
There are also several programs that can help assist with a down payment, and a REALTOR® may advise as to your options. One notable mention goes to Habitat for Humanity GTA, where Habitat helps low-income families achieve their dream of home ownership through decent affordable housing, and most recently TREB contributed $150,000 to a new home build for a local family at Habitat’s 140 Pinery Trail.
Growing Your Wealth with Home Ownership
Home ownership will likely be the largest investment in your life. It can also provide one of the most dependable rates of return. In fact, home ownership is one of the more stable asset classes in the market and can offer you a straightforward way to build your wealth and save for retirement.
And, unlike, other investments, you CAN live in your home as it provides a nest egg for your future. Plus, if your home investment is your principal residence, price gains are exempt from capital gains tax.
Be a Part of a Vibrant Community
Finally, your home provides you with the backdrop for all of life’s most important events. Owning your home means contributing to, and becoming part of a vibrant community – this is the part of your investment that you just can’t put a price on. Owning a home in a neighbourhood you can call “home” buys you a sense of security and peace of mind that is truly priceless.
So, whether you’re considering buying your first property, or you’re looking to downsize to a more manageable space, remember that home ownership is a great investment! For more information on home ownership, please visit: http://TREBhome.com/market_news/hot_consumer_topics/homeownership/great_investment.htm
Considering home ownership? Talk to a Toronto Real Estate Board Professional Member Realtor. For updates on the real estate market, visit TREBhome.com. If commercial property is what interests you, contact a TREB Commercial Professional Member Realtor by visiting trebcommercial.com.