City’s Plans to Double Development Fees on Condos is a Bad Idea

June 26, 2013 in Real Estate Blog

The City’s plan to double development fees on new condos is wrong. This is bad news for buyers and here’s why:

On a two bedroom condo, it will bring the development fee to $23,000; on a $400,000 condo purchase, the HST, which is built into the purchase price, is $52,000; the land transfer tax, before rebates for first time buyers is $8,200 for a whopping total of $83,200 in taxes!

Developers will not foot the brunt of these new development fees and will pass some or all of it onto the buyers.

City officials are arguing that the development fees in Toronto are lower than neighbouring municipalities, but they fail to remember that we already pay an additional land transfer tax.

The proposed increase in development fees will not only slow down an already balanced condo market,  but will make it harder for first time buyers to get into the market.

The City has to stop reaching into our pockets and be more fiscally responsible.  Isn’t that what the Ford administration promised us, along with the elimination of the land transfer tax?

Here’s an article about the proposed development charges that appeared in Today’s Toronto Star.

http://www.thestar.com/news/city_hall/2013/06/25/condo_boom_builders_say_doubling_development_charges_threatens_downtown_renaissance.html

 

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