Secondary homes will bear primary cost of HST
Purchasing a new ski chalet, a new weekend condo, or a new cottage will get a lot more expensive when the Harmonized Sales Tax (HST) comes into effect July 1. Buyers of new homes that do not qualify as a primary residence will bear the full brunt of the 13 per cent HST. The tax will add tens of thousands of dollars to the cost of a new second home.
Last summer, after vigorous lobbying from Ontario Real Estate Organization (OREA) and other members of the housing industry, the province introduced a housing rebate of up to $24,000. However, in order to qualify for the rebate, the home has to be a primary residence.
“There’s no doubt that it’s a blow for the industry,” says Frank Giannone, past-president of the Ontario Home Builders’ Association. “It’s going to have a significant effect on the second-home market.” – courtesy of OREA
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