Alberta’s new budget spares real estate market

Alberta’s new budget spares real estate market

Alberta’s new budget spares real estate market Alberta’s new provincial budget was rife with tax increases, including those relating to real estate, but agents on the ground say those fee increases aren’t likely to really impact the market.
“Alberta right now is an interesting time,” says Duane Ritter, a sales rep in Edmonton. “I don’t really believe the budget will have any effect on real estate... It’s just going to take more money out of our pockets.”
The budget, announced Thursday afternoon, called for increases to many of the province’s taxes. Most notably, Alberta has done away with a flat 10 per cent tax, instead adding two brackets for those earning more than $100,000 in taxable income.
Traffic fines will rise an average 35 per cent, while taxes on alcohol are increasing 16 cents for a bottle of wine and 90 cents for a 12-pack of beer. Taxes on cigarettes are set to jump $5, to $45 per carton.

Fuel taxes will increase to a total 13 cents per litre, which is still the lowest in the country.
The greatest potential impact to real estate, however, is an increase to the land title and mortgage registration fees. As the Calgary Herald reports, those are expected to spike to $1,230 on a $500,000 property. That’s a four-fold increase from the previous fees of $290.
“I don’t think there’s anything major that came into the budget that’s going to deter real estate sales,” says George Bamber, a broker/owner in Calgary. “It’s another expense that people don’t really want to incur, but it’s going to be the cost of doing business.”

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  • Len Lane 2015-03-29 2:36:59 PM
    While it may not affect real estate it will increase closing costs for all buyer. They did saty away from land transfer taxes directly but these items below will add up for all buyer,

    ◾Land title search including online search: $15
    ◾Land Title Caveats: $35
    ◾Transfers and leasehold titles - Flat fee: $75
    ◾Transfers and leasehold titles - variable fee per each $5,000: $6
    ◾Mortgages- Flat fee: $75
    ◾Mortgages- Variable fee per each $5,000: $6

    Just means buyers need to pay more attention to closing costs when they are buying.
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  • Ontario broker 2015-03-29 5:58:32 PM
    Are you kidding Len? Come to Toronto where there are 2 land transfer taxes. And you are complaining about $6?
    Shake your head
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  • Len Lane 2015-03-29 7:07:40 PM name no surprise. read 6 dollars for 5000 adds up but we have lived in the land of the free for a long timer. Yours must be the result of the to many liberal and ndp government. Well at least no sales tax and stil the lowest income tax in Canada.
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