Its been said many times that Real Estate is the stick that stirs the economy. A healthy real estate market contributes to so many more sectors and keeps everything flowing. It was great to see that there were significant victories for the real estate industry as a whole including buyers and sellers. With the falling interest rates and these type of announcements, there is no doubt it will have many buyers leap off the fence and into the housing market once again. To recap, the benefits are as follows:
- First time buyers using the Home Buyers Plan can now withdrawal $25, 000 from their RRSP instead of the original $20,000;
- First time Buyer 15% tax credit on expenditures up to $5,000. This could result in a savings of up to $750 and created to assist with closing costs such as legal fees and land transfer taxes;
- For property owners, there now exists and incentive to improve their property. If you spend a minimum of $1,000 to a maximum of $10,000, there is a new renovation tax credit that could result in a 15% tax credit to a maximum of $1,350. The only catch is that the renovation has to be on a personal residence dwelling and completed before February 1, 2010.
All great features and benefits for our clients. All levels of government around the world are showing a willingness to make a difference with the exception of our city council and mayor. How long will it take before they finally admit that the new City of Toronto Land Transfer Tax is unfair, poorly planned and introduced at the worst possible time?
RE/MAX Ultimate Realty Inc., Brokerage