Realtors no fans of HST
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Updated: August 07, 2009 3:23 PM
The new Harmonized sales tax is not being welcomed by realtors in B.C.
The good news is that it will not be applied to the full price of a new house, but the bad news is that many housing services that were not previously taxed by the province will be now.
“We’re definitely concerned,” said Fraser Valley Real Estate Board president Paul Penner. He noted that the industry is doing “intense research” into the tax, led by the B.C. Real Estate Association.
The tax will only be applied to the portion of a new house that costs more than $400,000.
“In Abbotsford, I don’t know of anyone building them under $400,000,” said Penner. “Over $400,000 is not a luxury home in Abbotsford.”
And, he said homes will now be made less affordable as the new HST is applied to real estate commissions, inspection fees, property appraisals and even on the labour for any renovations.
Penner would like to see the government move to protect and stimulate this part of the economy.
The importance of the new home sector cannot be overstated,” he said. “We’ve got concerns.”
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