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Want to know why condo prices are going up to crazy levels?
- Land prices up: yes
- Lots of well financed developers: yes
- Lots of willing buyers: Yes
- Construction costs up: Yes
- City and Provinces taxes up: YES AND YES
Development charges are charged by regions and municipality to recoup costs for providing services for new developments (transit, water, sewage, gas and hydro). According to Building and Land Development Association, from 2001 to 2008 Development charges have increased 342%. During this time, most would argue that services haven't kept pace
As a case study, the Altus Group provided an insight into City of Toronto and provincial charges that go towards condo buyers bottom line:
Studio/1 Bed
Land Transfer Tax $1,200
Parkland dedication $4,000
City Development Charges $4,731
School Board charges $544
Realty taxes in construction $300
Section 37 $3,000
Building Permit $1,250
Misc Fees 500
HST on sales $15,000
Total $30,525 or 10% of the sales price
2 Bedroom or bigger
Land Transfer Tax $1,700
Parkland dedication $5,750
City Development Charges $7,613
School Board Charges $544
Realty taxes in construction $400
Section 37 $3,000
BuildingPermit $1,700
Misc Fees 500
HST on sales $22,000
Total $43,207 or 10% of the sales price
Townhouses
Land Transfer Tax $1,250
Parkland dedication $4,100
City Development Charges $9,340
School Board Charges $544
Realty taxes in construction $300
Section 37 $3,000
Building Permit $2,600
Misc Fees 500
HST on sales $43,000
Total $64,624 or 13% of the sales price.
With the new taxes, hidden as metropass requirements and green roof requirements, expect prices to increase further.
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2 comments:
Hi Can you post some photos of this Studio type? I am interested to the sales price.
condo Philippines
With more and more people choosing the condo lifestyle in Toronto, it can sometimes be very difficult to find a building that will accommodate your pet which in turn makes your condo search a more challenging and more frustrating task.
Toronto Condominiums
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