MBABC Survey Warns of HST Impact
75% of MBABC members think the harmonized sales tax (HST) will hurt BC’s real estate industry.
The HST, which is coming to BC and Ontario on July 1, 2010, will raise the cost of home ownership notably.
Not only will the cost of a new home priced at more than $525,000 increase, but all services related to a real estate transaction will also cost 7-8% more--including fees for appraisals, conveyancing and property inspections.
MBABC President, Joe Santos, feels that this may force potential home buyers (especially first-time buyers) to:
- Purchase less expensive homes
- Postpone a purchase due to the higher transaction costs.
These are factors to watch because first-time homebuyers provide considerable support for home prices.
Fact of note: The vast majority of BC and Ontario citizens believe the HST is inequitable. Story / Survey
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MBABC stands for the Mortgage Brokers Association of BC. MBABC represents member brokers in BC and fosters professionalism, ethical standards and consumer awareness.
