MINUS ONE

The recent announcement regarding the one percent reduction in GST for 2008 will be another plus for the Quinte housing industry. Not only will there be a savings on new home construction (normally the GST is built into the price), but it will also impact all the other services associated with new and resale home purchases for which you pay GST i.e., legal fees, real estate commission, survey fees, etc.

The one per cent reduction in the GST will also help residents of Trenton, Belleville, Brighton and other Canadian cities pay for upgrades such as home renovations or the purchase of appliances or furniture. "According to research conducted by CREA, Canadians spend an average of $7,475 on renovations when they buy a home, and spend another $3,950 on furniture and appliances. The GST cut represents $114 in savings based on these averages."

Of course, if you are a resident of Toronto you may have lost a lot of these gains now that the Mayor has insituted yet another government grab with their own Land Transfer Tax. Lets hope that mindset doesn't make its way east!