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The President of the Windsor-Essex County Association of Realtors (WECAR) says a proposal put forward by the Conservative Party of Canada to cut GST for new homes is a bold and much needed move.
Maggie Chen is reacting to the promise made by Conservative Party Leader Pierre Poilievre to eliminate GST on new homes under $1-million.
Poilievre states that under this proposal it would spark 30,000 extra homes built each year, generating more income for construction workers and businesses, and $2.1-billion of revenue for government.
Chen says this would mean that a homebuyer purchasing an $800,000 home, for example, could save $40,000 in taxes.
She says it would be a big save to those purchasing a home.
"Most of the time that what I could see is that people are buying, whoever is buying, brand new construction at $800,000, $850,000, they are selling their existing resale homes to be able to buy a bigger, brand new, higher price range home."
Chen says home owners would be more willing to build a new home if GST was eliminated.
"And then these starter homes will be added to inventory, so more first-time homebuyers to buy. So, increasing the chances to own a home for them, that's number one. Number two is that when the market is more active, more inventory, then it is beneficial for everybody."
She says it's not about political views, but it's about advocating for those looking to purchase a home.
"We encourage all levels of government to do more so that homeownership is not a dream anymore. Our hope is that every Canadian who is waiting to buy a home, to be a home owner, can make it happen."
Chen says there needs to be policies in place that treat housing as a necessity, not as a source of government revenue.
In Ontario, there are a combination of taxes from land transfer fees to development charges and sales taxes added.
