Moncton's market and the Provinces' Taxes

The Greater Moncton Real Estate Board continues to have a good year regardless of the melt down's going on in the larger centers.  We are still up 4% on total number of sale at the end of July, out dollar volume is up 6% and our average sale price is up 4.4%.  Nice steady growth - like we always seem to have.

The New Brunswick Real Estate Association (NBREA) has come out with a discussion paper concerning the tax system in NB.  NB is the only Province in Canada which has a "double taxation" system.  In NB, on a non-owner occupied property, the owner does not receive the Provincial Tax Credit for the property which, in effect, doubles the property tax due.  This often makes owning property for an investment a loosing proposition.  Combine this with some serious increases in the tax assessments, it has become difficult for landlords to make any return on their investment. There is a limit to how much they can raise the rents charged so soon there is nothing left to do maintenance to the properties.

The rapid increase in assessments has affected seniors as well.  We have seen cases of property taxes increasing by over 50% in two years.  For people on retirement income, this can sometimes make it very hard for them to remain in their homes.

REALTORS(r) in NB feel this is unfair and have been encouraging the parties in the upcoming election to come up with a fairer, more transparent system of taxation.  The Government Relations Committee of NBREA has been working hard for the past 6 months to make taxation an election issue and it appears they are having some sucess as the Liberals and Conservatives are both putting taxation "planks" in their election platforms.

REALTORs(r) are trying very hard to help the people of NB get a fair shake on taxation.

Paul Burns

Paul Burns

CENTURY 21 A & T Countryside Realty Inc.
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