Manitoba Land Transfer Tax

I had a deal happening where the client made an offer of 199999 because they didn't want the price to go over 200000 and incur an extra 1/2 % on the transaction -- this is not the case - land transfer tax increases after 200000 to 2.0 percent but only applies to the amount above 200000 so the difference between a sale at 205000 is only 25.00 not the 1025.00 as feared by the client - you can check it out at

http://gov.mb.ca/finance/landtransfertax.html and the good people at land titles love working with the public as well. 

This being said it doesn't mean land transfer tax is not an issue when you look at the average home selling for 265000 now as opposed to the 140000 of 2004 ( last time tax was adjusted ) it seems like a huge cash grab in our hot real estate markets.. a 89% increase that is almost 10 times inflation in the same period. approx 9%  according to statscanada

http://www40.statcan.gc.ca/l01/cst01/econ09a-eng.htm

But with provincial sales tax and other income inputs decreasing and an increased provincial focus on Education,Health and crime prevention the likelihood of a correction is unlikely without significant political pressure.

my personal feeling is the average should always be adjusted to the average even if its the 1.5% and then you pay for the luxury of being above average -- in any case if you are buying a home count on 2.0% of purchase price for closing costs and you should have a little left over as long as you have a good deal on legal fees - but that's another blog for the future

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George Hacking

George Hacking

REALTORĀ®
CENTURY 21 Jefferson & Associates Realty Ltd.
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