Hudak issues dire HST warning to realtors
Posted By NICKI CRUICKSHANK
Updated 5 months ago
J.T. McVeigh PhotoProvincial leader of the Progressive Conservative party Tim Hudak addresses the general meeting of the Barrie & District Association of Realtors Thursday morning. (thursday, March 11, 2010)
|
|
There's no place like home. But the proposed harmonized sales tax (HST) might keep potential homebuyers from affording one.
That's the message Ontario PC Leader Tim Hudak delivered to Barrie realtors Thursday.
"The real estate sector has plenty to worry about," Hudak said. "The HST is going to hit hard after coming into effect on Canada Day. It will slap an extra $1,500 on the closing costs of home sales.
"And, if you're buying or selli
ng a home that's worth $400,000 or more, the HST will take a massive bite out of your pocket book."
Hudak was guest speaker at a Barrie & District Association of Realtors' meeting at the Barrie Country Club.
His warnings about the effects of the HST left 13-year realtor Wendy Elzner feeling uneasy about the local market.
"I think it's going to be more of a cost to sellers, because they'll get hit selling their existing home and when they buy another one," said Elzner, an agent with Century 21. "Every dollar that isn't in their pocket will matter to them.
"It's us that'll get the brunt of the blame, but it's not like we'll be getting the extra money it costs (clients)," she added. "We're just as upset about this as buyers and sellers will be."
The association's political action committee invited Hudak to shed light on the HST and what it means for those in the industry.
"He gives a different perspective and he's a very good speaker," said committee chairman Henry Spiteri.
"We need to know the facts on issues like the HST and how it'll affect the housing market.
"We anticipate it's going to slow us down," Spiteri said. "We're concerned most for first-t ime homebuyers because (HST) is going to make the price of housing go up."
Hudak said Premier Dalton McGuinty's $3-billion HST plan will up real estate costs by 8%, and that local agencies are going to feel the pinch.
He said in 2009, Ontario saw a 69% decline in housing starts, and the HST will only take homeownership out of homebuyers' hands even more.
He said his party is fighting this plan all the way.
"A home is not simply a commodity to be taxed. It's where we raise our children. It's a place of comfort and security," Hudak said. "We believe we should suspend the land transfer tax to make properties more affordable for buyers.
"I'm pleased to see the Barrie realtors' board lobbying for suspending the land transfer tax, too," he added.
Hudak said he expects to see home sales hit a high as the summer approaches.
"I think you'll see a lot of people scrambling to buy a home before Canada Day, when this takes effect," he said.
During the meeting, one realtor asked Hudak if the HST is reversible once it's in effect. Hudak said that would be a costly avenue to take.
"If future governments want to rescind this tax, they'd have to pay back $4.3 billion," he said.
Topic guidelines: We welcome your thoughts, stories and information related to this article.
Please stay on topic and be respectful of others. Keep the conversation appropriate for interested readers.
