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Wednesday, 02 January 2013 19:43

Florida Realtors: Ontario property tax driving U.S. investment

Written by  Jemima Codrington
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The threat of property tax hikes now hovering over Toronto will drive investors stateside – well that’s what Florida Realtors are telling Canadians anyway.

According to Sarasota Bay Real Estate, until now most buyers have been attracted to “second homes with a sunny, tropical climate.” But the increasing number of cash purchases suggests investor appetite --- especially on the part of Canadians -- is gaining strength.

In fact, that interest is only expected to grow, according to Christina Miller, a partner in Sarasota Bay Real Estate. She and others are pointing to a gap in the average Toronto home price compared its Florida counterpart, but also to the property tax increases expected to widen the divide.

The Ontario Municipal Property Assessment Corp’s announcement that property owners will see an average assessment increase of 5.5 per cent over four years may be the tipping point. Homes in Toronto will be hard hit, following new appraisals suggesting the average value of Toronto homes has appreciated 22.8 per cent in four years.

Larry Hummel, MPAC's chief assessor, says most markets across the province have followed suit.

"Our values reflect local real estate markets and confirm that most homeowners in the province have seen the value of their homes increase over the last four years," he said.

But attracting more Canadian snowbirds may be challenged by U.S. and Canadian residency rules, say analysts, while investors in Toronto may be reluctant to sell cash-flowing properties in order to fund Florida purchases.

Last modified on Wednesday, 09 January 2013 17:17

3 comments

  • Jackie Goodlet Tuesday, 08 January 2013 15:29 posted by Jackie Goodlet

    I think it is wishful thinking at this point for Mayor Ford to adhere to his election promise on the Land Transfer Tax issue but miracles do happen so you never know.

    For anyone thinking of buying property in the sunny south I would highly recommend reading the book called, The Border Guide: A Canadian's Guide to Living, Working, and Investing in the United States.

    There are still plenty of deals to be had in the Durham Region area especially for those wanting to relocate a short drive out of the city as you get a pretty good bang for your buck!

    For all your Real Estate needs contact us at....

    www.thejackiegoodletteam.com

  • Debbie Wilding Friday, 04 January 2013 23:29 posted by Debbie Wilding

    Although the Toronto Real Estate Land Transfer Tax has had an impact on the resale market there are plenty of investment properties outside of the Toronto area for Buyers. The TAX implications when a resident of Ontario buys in the United States should be investigated by the Buyer BEFORE they take the time to look at investment in the USA. There is something called CROSS BORDER TRUSTS that could help Buyers in the end.
    BUY in BRAMPTON just outside of the Toronto area...call us.
    www.TheWildingTeam.com

  • Robin Friday, 04 January 2013 22:27 posted by Robin

    Let's hope this tax gets revised--and revoked in the future.

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