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Hi Everyone:
With the start of what is promising to be another hectic spring market, Winnipeg Home Buyers are coming out in force once again. I have found that many financial institutions, while pre-approving the buyers, don’t adequately explain some of the major costs involved in purchasing a home. Case and Point: The Land Titles Transfer Tax, a major Gouge-Tax aimed at filling Provincial Coffers.
This tax is based on a sliding scale, and the more expensive the house (or condo) being purchased, the higher percentage the tax being charged. Here is a breakdown on the rates and some examples:
Basic service charge is $70.00
Houses UNDER $30,000 are exempt (THANK YOU, when was the last time you found a house in this category???) So a $27,000 dollar home would only cost the basic $70.00 charge.
Homes between 30K and 90K are charged a 0.5% of the selling price above the 30K mark (plus $70.00) So a 65,000 dollar home will cost the buyer $245.00 in tax (0.5% of 35,000 plus $70.00)
Homes between 90K and 150K are an additional 1% of everything above 90,000. So, a $120,000 will cost a total of $670, which is the total of (0.5% of 60,000) + (1% of 30,000) + $70.00 base tax.
Everything between 150K and 200K is an additional 1.5%, making a 200,000-dollar home a tax-grab of $1720.00
Good news, after the 200,000 mark, the calculations get very simple. Just take everything above 200K, and add an extra 2% to the 1720.00 price. So for example, a $350,000 home will raise a total of $4,720 in Land Titles Transfer Tax, which is arrived by adding the $1720 (from the 200K range) plus 2% of the additional $150,000 above this price.
This tax is applied to all resales of houses, condos and even vacant land. Also, if you buy a brand new home, the same tax applies. There is one (sort of) exemption: If you buy a vacant lot, and then build a house on it, you only pay the tax on the value of the vacant lot, so long as the title is transferred to your name BEFORE the house is built on the land.
Bo Kauffmann of Remax Performance Realty is the recipient of the 2009 Silver Medallion Award from Winnipeg REALTORS®, the Platinum Club Award from Remax, and is one of Winnipeg's top-producing Real Estate Agents. Check out his website at WinnipegHomeFinder, follow him on Twitter or email him at boknowshomes@gmail.com
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