We are fast approaching the July 1st deadline!
The GST and soon to be HST will affect only the services related to the sale of an existing cottage or home.
To make a long story short the sellers will end up having to pay more tax on the real estate commissions which will make the negotiation a little more difficult.
Based on a sale of $500,000.00 and a commission rate of 5% the tax until July 1 would be $1250.00 however after July 1 the tax will jump to $3250.00.
This $2000.00 jump will certainly be on the minds of the sellers and make them a little more hesitant to lower the asking price.
If you are a buyer you would be advised to try and close before July 1,2010.
Feel free to call anytime to discuss further.