Saskatoon,
Sk. May 2, 2006- The 2006 Federal Budget measures will put more money
in the pockets of individual Canadians and enhance their ability to maintain
and finance a home, the Saskatchewan Real Estate Association (SREA) said
following the tabling of the 2006 Federal Budget on May 2nd.
“The broad
tax reductions outlined in the Budget will help to increase consumer confidence
about making larger purchases, such as buying a first home or moving up into a
larger home to house a growing family,” said SREA Executive Vice President Bill
Madder “It will also provide some of the funds consumers might need to repair
or renovate their existing homes.”
“Local
REALTORS® welcome the reduction in the GST rate to six per cent, which will
have the effect of reducing the costs associated with buying or selling a
home,” said Mr. Madder. The GST is charged on professional services used by
consumers during the course of a housing transaction – including fees paid to
lawyers, appraisers, home inspectors and REALTORS®. The tax is also charged on
moving costs, renovations, and the purchase of furniture and major appliances.
The GST is also paid on new
homes, and the amount new home buyers will save with the reduction is significant.
For example, a family purchasing a new $200,000 home will save $1,280 in GST
when the New Housing GST Rebate is included.
The Federal Budget also
announces the creation three new third-party trust funds – worth a total of
$1.4 billion – to help provincial and territorial governments address housing
needs. A total of $800 million is allocated for affordable housing, $300
million for northern housing, and $300 million for off-reserve aboriginal
housing. Few details were on how the
fund will operate were included in Budget documents,
and REALTORS® will be watching closely to see how the money will be used.
“There are many useful
measures the federal government could take to address housing needs across
Canada that do not require the time and money associated with building new
housing units,” said Madder, who notes The Canadian Real Estate Association has
made many recommendations to the federal government for the development of a
comprehensive national housing strategy.
These measures include addressing
taxation and regulatory barriers that impact the affordability of housing, and
providing long-term, stable funding for the Residential Rehabilitation
Assistance Program.
About the
The
Saskatchewan Real Estate Association (SREA) is a voluntary, non-profit
organization serving, representing, and providing direction and leadership to
its members and to organized real estate. SREA is one of the largest
single-industry trade organizations in
Through
the Multiple Listing Service® (MLS®), SREA members facilitated the sale of 9927 properties
valued at over 1.2 billion dollars in 2005.
For
further information, contact:
Bill
Madder
Executive
Vice President
306-373-3350