How will HST affect your real estate investing?
- Thread starter ottawaman
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Yes
I`ll be poorer next month
My clients from my management business will also be hit with a tax increase from my services (and other expenses) for no additional benefit
Every real estate investors net income drops from the implementation of HST
I`ll be poorer next month
My clients from my management business will also be hit with a tax increase from my services (and other expenses) for no additional benefit
Every real estate investors net income drops from the implementation of HST
Everyone is going to be poorer.. But after a year I don`t think anyone will notice much..
The biggest impacts for me is it will make my commercial/industrial tenants a lot poorer and "may" even push down rental rates at least in the short term.. On average my tenants will be paying an additional $140/month which isn`t the end of the world but many of them are just barely staying afloat so between the extra taxes on the rent and the slow down I expect in economic activity while people adjust will cause a few vacancies for me..
Given that the average small unit (1000 sq ft) is taking 2-3 months to fill up and the larger (2000+ sq ft units) are taking 6 months or longer it may be a painful final 6 months of the year..
However I expect rent to own to continue humming along..
The biggest impacts for me is it will make my commercial/industrial tenants a lot poorer and "may" even push down rental rates at least in the short term.. On average my tenants will be paying an additional $140/month which isn`t the end of the world but many of them are just barely staying afloat so between the extra taxes on the rent and the slow down I expect in economic activity while people adjust will cause a few vacancies for me..
Given that the average small unit (1000 sq ft) is taking 2-3 months to fill up and the larger (2000+ sq ft units) are taking 6 months or longer it may be a painful final 6 months of the year..
However I expect rent to own to continue humming along..
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Closing costs will increase slightly so we all need to plan for that. If you are selling your costs will increase as the commissions you pay will now have the extra tax on them.
Operating costs will increase and, sadly, in Ontario they brought in more anti-landlord legislation by declaring that we cannot pass these additional operating costs onto our tenants.
Like the additional land transfer tax that the City of Toronto added to the transfer of a property, it will have a psychological effect for a number of months and then it will just become another part of everyone`s reality and life will go on (with a little less dough in our landlord pockets). Won`t be as bad as it all seems as it will add to inflation and inflation is what government controlled rental increases are based on - it will just take a while to take hold.
Operating costs will increase and, sadly, in Ontario they brought in more anti-landlord legislation by declaring that we cannot pass these additional operating costs onto our tenants.
Like the additional land transfer tax that the City of Toronto added to the transfer of a property, it will have a psychological effect for a number of months and then it will just become another part of everyone`s reality and life will go on (with a little less dough in our landlord pockets). Won`t be as bad as it all seems as it will add to inflation and inflation is what government controlled rental increases are based on - it will just take a while to take hold.
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All installed items in a home before had gst only, now we will have to pay hst.
Ie flooring job before cost $1000+gst=1050, now will cost $1000+hst=1130, in Ontario.
And that will be the case on all installed items like, heating, air conditioning, painting, roofing.
Nice!
So, yes. were all poorer.
Ie flooring job before cost $1000+gst=1050, now will cost $1000+hst=1130, in Ontario.
And that will be the case on all installed items like, heating, air conditioning, painting, roofing.
Nice!
So, yes. were all poorer.
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QUOTE (ottawaman @ Jul 6 2010, 04:54 PM) ...Any positive side to this
More business activity in AB, SK and MB ?
Less buyers .. more renters in BC or ON ?
More business activity in AB, SK and MB ?
Less buyers .. more renters in BC or ON ?