Land Titles Transfer Tax:  A financial 'kick in the 'nads'

. [caption id="attachment_1890" align="alignright" width="300" caption="Credit to Robert Galloway photostream on Flickr"][/caption] A few weeks ago, I wrote about Winnipeg Land Titles office, and the reason why there is usually a 3 to 4 week delay between the date-of-possession for a home, and the date-of-receiving money for the sale.  A couple of days ago, I sat down with a nice couple who were writing an offer on a house, and the conversation turned to the 'Closing Costs' of the purchase.  The conversation went something like this:

Mr. Buyer: So aside from the lawyers fees (which we had already discussed), what other costs will I need to budget for? Bo: Well, there will be home insurance.  Good news is that you won't have to pay any property taxes, because we're doing this in January.  But of course you have to budget for the Land Titles Transfer Tax. Mr Buyer:  A tax?  Just for changing the title of the house?  How much is THAT going to cost?

I did a quick mental calculation, and gave him the cost, and then watched as his face went thru the classical 5 stages of grief, from Denial ("This Can't Be Right), to Anger ((F*#@ing Govm't), Bargaining (Isn't there a way around this), Depression (Oh, Man.....that's alot of dough) to finally  Acceptance (Well,  It IS a nice house and there is NO WAY around it, short of leaving our province).  So just how much is the government raking in with this tax?

Land Titles Transfer Tax calculation:

While Manitoba is not the only province to impose this tax, it is by far the most aggressive and onerous.  Thru a set of formulas, we arrive at a figure of $1720 for a $200,000-house or condo.  With Winnipeg's average house price hovering around the $230,000 mark, we can see that our Provincial Government is collecting approx. $2000 in taxes, EVERY TIME the title of a house is transferred.  But wait, you say....  didn't Bo just tell us that it costs $1720 for a $200K home? Yes, but I haven't told you the worst part:  ABOVE the $200K price, this tax adds an additional 2% on EVERY DOLLAR. So, a $300,000 home will cost you $3720   (calculated by adding the $1720 base, plus 2% on the additional $100,000 price = $3720) While the Land Titles Transfer Tax is especially difficult for young, first-time home buyers, even people 'with money' find an added tax of 4 grand or more to be a financial 'hit'.  For that reason, Winnipeg REALTORS® have been lobbying to change this regressive tax.  Let's bring it more in line with other western provinces.  Ideally, inline with Alberta, where a $200K home costs $75 in Land Titles Transfer Tax and a $300K home costs $95.  But heck, let's not even look at those numbers, lets instead compare to my wife's home province of Saska-Bush ....  where it costs just $1200 to transfer the title of a $400,000 home.   Manitoba's fee for transferring the Title of a $400,000 home:  $5,720 For a look at more comparisons and for a more in-depth article on the Land Titles Transfer Tax, go to the Winnipeg REALTORS® website at http://2muchltt.com There is even a link to contact your local MLA...remember, next year's election is only about 10 months away.

Let's do something about this Land Titles Transfer Tax.

Related articles

• How do Winnipeg Property Assessment values compare to actual Market Value? (bokauffmann.com)

Real Estate Market Update report for Winnipeg in September 2010. Stats on listings and sold houses and condos in Winnipeg's hot real estate market

Here we take a look at how many homes are available on the real estate market in Winnipeg, and how many have sold in the past 31 days in Winnipeg. By combining these factors, we get a good idea of where Winnipegs Real Estate Market is heading.

If you're thinking of buying or selling a house or a condo in Winnipeg, please call my anytime. Bo 333-2202

Hi everyone:

In this crazy time of bidding wars (especially on entry-level houses) a first time buyer might consider purchasing a condominium for their first home. In fact there are many great reasons to buy a condominium, not just for a first time buyer. To see a list of reasons, read 7 Reaons

With 700-sq-ft bungalows selling in the south end of the city for over $200,000, there are a number of condominiums available for prices perfect for the first time buyer. To find out a little more, read Condos between 120K and 180K

As an example, an 800 sq ft apartment style condominium, with upgraded kitchen, bath, flooring, new appliances and much more, sell for approximately $160,000. And 1100 sq-ft townhouse condos, with c/air and insuite laundry can be purchased for approximately $165,000 to $170,000.

As an added bonus, although condominiums sometimes do receive multiple offers, these situations are far more rare, making condominiums an excellent choice for the first time buyer who need to put financing conditions into their offers.

Are you looking for a house or condo in Winnipeg, and considering purchasing a "Private Sale? Here is a recent example of what happened, and a very good reason why buyers should be working with a REALTOR® when shopping for a new home

Home Buyers in Winnipeg have a new tool at their disposal: REALTORS® use the Keystone-Matrix system which is a huge help for home buyers. There are several neat features in this system.... Here is a look at one of those features.

Here are some of the most common questions Home-Buyers have:

Q: Whats the best way to FIND a house in Winnipeg? Go to Open Houses? Looking thru real estate magazines? Search individual agents websites?

A: Magazines are often published once a month, or perhaps once a week. By the time a listing makes it into print, it's most often already sold or accepting offers. Open Houses can be very hectic, and you end up 'rubbing elbows' with lots of other visitors. The Best Way? Work with one REALTOR® who can show you ALL the listings. Someone like, say, me for example. Watch this video.

Q: Why should I work with a REALTOR®. I can find the houses on my own!

A: FINDING them is just a small part of what real estate agents can do for you. Once you find a nice house, I can help you evaluate it, offer advice on how to structure your offer to make it more acceptable (thereby winning any possible bidding war), and I can even help you get pre-approved by a great lender. Please watch this video.

Q: My checking account is with a bank. Can't I just go there to be pre-approved?

A: In this fast market, every buyer knows that pre-approval is required, so EVERY buyer already does that. It's no longer sufficient just to be pre-approved, its actually more important to be pre-approved by the RIGHT lender. To find out HOW you do that, watch this video. .

I update this Blog on a regular basis, adding new listings, market updates, news and interesting (well, at least I think they're interesting) pieces of information. You can make sure that you receive the posts by two ways: Subscribe to the RSS (check the toolbar along the bottom of the screen) or fill in this form and you'll get the latest blog posts via e-mail, once a week.

Winnipeg's Real Estate Market is always changing, and FAST. Prices and evaluations that were true a few weeks ago, are no longer accurate. New price-points are set on a weekly basis.
For a Free Market Evaluation, call me anytime. 204-333-2202

Here are some of the most common questions Home-Buyers have:

Q: Whats the best way to FIND a house in Winnipeg? Go to Open Houses? Looking thru real estate magazines? Search individual agents websites?

A: Magazines are often published once a month, or perhaps once a week. By the time a listing makes it into print, it's most often already sold or accepting offers. Open Houses can be very hectic, and you end up 'rubbing elbows' with lots of other visitors. The Best Way? Work with one REALTOR® who can show you ALL the listings. Someone like, say, me for example. Watch this video.

Q: Why should I work with a REALTOR®. I can find the houses on my own!

A: FINDING them is just a small part of what real estate agents can do for you. Once you find a nice house, I can help you evaluate it, offer advice on how to structure your offer to make it more acceptable (thereby winning any possible bidding war), and I can even help you get pre-approved by a great lender. Please watch this video.

Q: My checking account is with a bank. Can't I just go there to be pre-approved?

A: In this fast market, every buyer knows that pre-approval is required, so EVERY buyer already does that. It's no longer sufficient just to be pre-approved, its actually more important to be pre-approved by the RIGHT lender. To find out HOW you do that, watch this video.

Here are a few of the most common questions home-owners have, and answers to them:

Q: What kind of questions should we ask a prospective Listing Agent?

A: Here is a guide to some of the important points to ask a Listing Agent. Please see the video in this post.

Q: How do we create a 'bidding war' for our house or condo?

A: There are several ingredients to creating a bidding war, including: Setting a realistic Asking Price, generating lots of Buyer Interest and also the status of the current market. For a video explanation, see this post.

Q: If we receive a full-price offer on our home, are we obligated to accept it?

A: No. If you were a store-owner, advertising a quart of milk for $1.00, you WOULD be obligated to sell at that price (or issue rainchecks), however home-owners are exempt from the laws that govern this issue. However, while no one can force a home-owner to sell at an advertised price, the question remains: "If he/she was not going to accept $220,000 for the home, WHY did we LIST it at that price?" For more indepth explanation, please watch the video in this post.

Q: Is there a difference between REALTORS®? I mean, they all provide the same service, don't they?

A: We are all called REALTORS®, we all place homes on the M.L.S.®, but that's pretty much where the similarities end. Just as no 2 lawyers are the same, no 2 doctors are the same, so we can quickly see the differences between Real Estate professionals. I always say: You hire a REALTOR® for one reason: To do the marketing and advertising for your home, and this is where a huge difference becomes apparent. To see my marketing plan, check out this video.

I update this Blog on a regular basis, adding new listings, market updates, news and interesting (well, at least I think they're interesting) pieces of information. You can make sure that you receive the posts by two ways: Subscribe to the RSS (check the toolbar along the bottom of the screen) or fill in this form and you'll get the latest blog posts via e-mail, once a week.

Hi Everyone:

It's the start of the spring market in 2010 and home-owners are well advised to begin looking at 'listing' their home. Buyers are looking, and there are NOT a lot of homes on the market right now.
For example, in the Meadowood area of St Vital, which has 1784 houses, there are currently only 2 homes for sale. Which is why, RIGHT NOW is an excellent time to put your home on the market.