Landlord’s could be eligible for an HST Rebate
Unlike buying a resale residential property, when you buy a new build home you actually have to pay HST on the sale of the home which can be a huge chunk of change. Think about 13% on a purchase price of $400,000, I dont want to think about that bill either but I will still do the math for you……its $52,000. Can you imagine paying that much money in taxes on one purchase!
13% HST on a purchase price of $400,000 is $52,000!
A client of mine just leased out there new build condo without ever living in the unit and they are taking advantage of this rebate. Since some people are finding it hard to save up for a downpayment and purchase a home the government is providing an incentive for people to provide more rental housing which is great.
Of course with any rebate there are many criteria and details that determine eligibility and amount that you will get back, you should definitely talk to an accountant, if you aren’t familiar with one we can definitely refer you to a great accountant who specializes in Real Estate!
Link to the government website explaining more of the details: