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Govt Charges on Homes Keep Rising

The Residential Construction Council of Ontario says up to 30% of Toronto’s new housing price is from govt charges.

They say govts increasingly look to new housing for revenue because the charges are not transparent to consumers, unlike property tax increases.

CRD municipalities appear to be moving in the same direction.

We estimate govt costs are 20% of new home prices, not including regulatory challenges like delays in approvals and inefficient permit processes – which are significant.

According to the Victoria Real Estate Board, the benchmark price for a single family home in May was $681,800.

Twenty per cent of that price is $136,360 and rises to almost double on a mortgage at 6% over 25 years.

Govt should be transparent about the impact of fees on new housing.

Elected officials often claim the developer is paying, but consumers know the cost of manufacturing any product is ultimately paid by the purchaser.

These rising costs include:

It’s no wonder BC’s house prices are $170,000 above the national average and climbing.

Last year the province promised to make govt costs transparent and municipalities accountable. That action is long overdue.

Visit us at vrba.ca and careawards.ca. Follow us on Facebook and Twitter.

This column appears Wednesdays in the Times Colonist.

 

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