Manitoba Government makes cost of buying and maintaining a home in Winnipeg more expensive by taxing property insurance
by Brenden Morgan, Sutton Group
Thanks to our Provincial Government’s latest budget, it is now more expensive to own a home in Manitoba.
The Manitoba Real Estate Association has for years been a strong opponent of the tax gouging on home buyers in Manitoba through the Land Transfer Tax (LTT). There was great hope that the Government would reduce the LTT in this new budget or at least waive the LTT for new home buyers as other provinces do. But not only did the Government not make any changes to the LTT, they made the cost of buying and maintaining a home more expensive by taxing property insurance, which of course is required if you have a mortgage.
In 1987 when the LTT was implemented, based on the average price of a home, a purchaser paid $260 in LTT. Today, based on the average price of a home, a purchaser will pay $3,250 in LTT. That’s an increase of almost 1300%. Agreed, house prices have gone up in the past 25 years but not even close to 1300%. In 2011 the Provincial Government collected just under $59 million in LTT.
In the combined Bright Oaks, Elm Park, Pulberry, Norberry, Normand Park, River Pointe, and Van Hull Estates neighbourhoods of Winnipeg last week, there were six homes and one condo sold. Selling prices ranged from $196,000 to $593,000. In St. Vital last week, three homes sold ranging in price from $269,000 to $352,000. There were no condo sales in St. Vital last week.
Based on just the 10 home sales above, the Province collected almost $50,000 in Land Transfer Tax, with one buyer paying almost $10,000 in LTT alone.