Most Ontarians confused about HST and resale homes
An Ipsos Reid survey commissioned by the Ontario Real Estate Association and released in October reveals that 56 per cent of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) is added to the full purchase price of a resale home. In fact, the HST is only added to the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home). As an example, a lawyer now must charge 13% HST on his or her services as opposed to simply charging the GST which was the case prior to June 31.
The average price of a Barrie resale home (using sales statistics from September 1, 2010 to November 18 ) is around $255,000. Therefore, this confusion leaves the majority of people wrongly believing that the HST will add more than $33,150.00 to the cost of buying a home in Barrie. There is growing concern among real estate professionals that this misperception about the HST is dampening the housing market.
If you have questions about the cost of buying a home, don't hesitate to call or text me at 705-627-0367 . I will be happy to help.
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