Mississauga Realtor Helps Home Buyers Ease Purchase Tax Burdens
Online, August 24, 2010 (Newswire.com) - Mississauga, Ontario - When it comes to buying a house, one of the most confusing things to have to deal with is HST. Since taking effect in July 1, 2010, there has been some confusion in relation to real estate transactions.
For those people who are not aware, HST is only applicable to newly constructed homes and not for resale homes. And since the 5% GST was already in place for new home constructions and often already worked into the price, there is now a debate on who should be paying the additional 8% of the HST, the builder/seller or the buyer?
The existing OREA (Ontario Real Estate Association) clause that the realtors have access to has it all included and let's the seller collect any rebates.
The issue stems from the inclusion of a clause in the OREA contracts which state that to a point, builders of new homes can include the value of the taxes into the purchase price of the house, which would allow it to be absorbed by the mortgage. Others have stated that the 13% HST does not take into account the built in 5% grace for GST and the rebates offered by the government. Therefore the buyer in many cases has the potential to be double taxed. One Mississauga realtor however is not confused or afraid of the tax law, Donna Gray knows how to make the HST laws work for her clients and is out to make a difference in how people buy their homes and pay their taxes.
"My issue is that the entire 13% is expected to be paid by the buyers now, and I think that the builders need to work it ALL into the price of the home... but need only to increase the sale price by the net added 8%(because the 5% GST was already worked into the price), minus rebates as per the provided preprinted OREA clause." Donna Gray stated in a recent interview discussing the new HST.
The taxing issue is one that many realtors find daunting to deal with. On one side of the equation they, have the law to contend with while on the other side, they have the client who may be scared off a deal if the final taxes are too high. Experienced realtors like Donna Gray have the knowledge to guide their buyers through the whole buying process.
"Prior to the full HST, we already had the expectation of 5% GST. Buyers can qualify for up to $24,000 in rebates. The major question buyers have to deal with now is if the net tax amount to buyers then be 8%-$24,000 rebate or should they be dealing with the 13% and then apply the credit?" This is a question that is highly debated and the truth is that the answer depends solely on the situations of the buyers and the cost of the house. Donna Gray has the level of experience needed to help buyers to choose the best course of action based on their needs and conditions.
For those who feel that their taxing issue is just too much to understand on their own, Donna is ready to help. She has a website which is filled with great advice and informative articles on just about everything you could possibly want to know about the real estate markets. Interested parties can view her site as well as make contact with her at http://www.donnagray.ca.