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Could the Looming HST Cause Residential Building Blitz?

17 January 2010 2 Comments
hst tax, new home

With both the implementation of the Harmonized Sales Tax (HST) and the spring building season drawing near, the real estate market and construction industry just might get the boost they need. While polls show consumers are decidedly against the added tax, with only several months before it takes effect, those looking to purchase or build a new home could have enough incentive to streamline their plans.

With the new tax primarily affecting those who are building houses over $500,000 in Ontario and $525,000 in BC, it is likely that this possible building blitz will be for higher end homes. Or this could simply be the perfect opportunity for those who want to avoid the new tax and stick it to the liberal government at the same time.

One must wonder, though, if this is some work of economic genius by likes of premiers Gordan and Dalton. After all They did promise that the HST would increase investment and spending and well, this looks like that very thing. Perhaps that’s giving too much credit to the two premiers, whose favour has dropped significantly since announcing the tax.

Whatever the case, even the most critical will agree that a building boom could help jump start the economy in the new year, even if it is a symptom of the HST.

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2 Comments »

  • Jim McKing said:

    Can this article be any more short-sighted? Building boom for 5 months?? What about all the cancalled work after the implementation of the HST?

  • James said:

    I agree with Jim. The HST might be good for big business but it is horrible for the small builder/developer who purchases the land pays a property purchase tax, builds, and then is asked to either pay 12% on the land on resale of the new structure or pass it along to the purchaser. Ridiculous! Why has land not been exempt from HST. This is a horrible tax grab. On a new home that would sell for 2 million the HST is $240,000. Why would anyone build or buy a new home? Why has this problem not been fixed?

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