Land transfer taxes

[lio45]

$73,000 can buy a lot of books..... Couldn't agree more with you.

[wg_flamip]

Originally Posted by lio45

I wouldn't put all these measures in the same basket like that. Ideally, what you want to do is use these taxes as a behavioral incentive.

For example, you should want to have a PST. It encourages eco-friendly behaviors (buying less new stuff, favoring used stuff on kijiji over new stuff) and it's hard to find ways to get around it for the average person.

A land transfer tax, though... rewards people who don't move, and penalizes them for moving. And it rewards older rich people who bought before its introduction, and penalizes younger people who haven't yet bought, i.e. there's a generational unfairness aspect about it.

I'm not sure there's much of an argument to be made for PST on sustainability grounds: The cheapest products are rarely the most environmentally sustainable (discounting kijiji/swap meets/etc.). The generational unfairness thing can be alleviated by instituting an exemption for first-time home buyers (which I believe is the case in Toronto), but tax reform will always lead to some unfairness one way or the other. Besides, there is already a lot of unfairness at work in the tax system WRT real estate (the capital gains tax exemption for primary residences, for example, which favours those who invest in real estate over those who invest elsewhere while renting a home).

[1overcosc]

Originally Posted by lio45

Yeah, I'd also say mistercorporate's estimation of my situation in my 20s isn't all that correct. I had my eye set on trying my luck in real estate, so I dropped my M.Sc. project and went to work with my dad. I lived frugally for a year, saving every penny, living at my parents... after a year, I had saved $20k, I managed to use that to buy a four story mixed use building in downtown Sherbrooke ($130k; the owner agreed to give me a $20k second mortgage; he wanted out, the building was a PITA for him at that point).

At the moment, I was daily-driving a rusted '89 VW Golf diesel, the most economical car available in the country, that I had paid $300 for.

My gf and friends were semi-mocking me for being a cheapskate generally, and also for living at my parents. In retrospect, it was all worth it, as I knew already back then it would.

Sounds similar to me.. my friends made fun of me too for living cheap. Now my rental income pays for all my housing costs and gives me a monthly profit on top of that so who's laughing now...

[Doug]

From what I remember, Alberta has a different land title registration system than other provinces. The Province controls all documents related to property ownership and absolutely guarantees that title is free and clear provided the owner has a Real Property report. The fee is to cover the cost of this insurance system. In other provinces, title insurance is over and above land transfer fees.

[Boris2k7]

Originally Posted by Doug

From what I remember, Alberta has a different land title registration system than other provinces. The Province controls all documents related to property ownership and absolutely guarantees that title is free and clear provided the owner has a Real Property report. The fee is to cover the cost of this insurance system. In other provinces, title insurance is over and above land transfer fees.

It's not exactly common, but some people still purchase title insurance in Alberta. Dealing with those companies is cumbersome though...