\u201cLowering the excessive tax burden on the purchase of a new home for first-time buyers, in line with what the feds have done, will help those who have been priced out of the market,\u201d said RESCON president Richard Lyall. \u201cFirst-time buyers account for roughly 35 per cent of new home purchases but they have been particularly hard hit, given the housing-cost-to-income-ratio which, in recent years, has moved beyond historic averages. This initiative will help to prevent younger talent and families from leaving the Greater Toronto Area and the province.<\/p>\n \u201cThe timing of this action is critical as the outlook for the residential construction industry is grim just now,\u201d explained Lyall. \u201cIn Toronto, for example, housing starts are near a 30-year low, and sales have ground to a halt. Forecasts indicate this weakness is expected to continue.\u201d<\/p>\n At a recent housing summit sponsored by RESCON, construction industry experts, professionals and stakeholders indicated that the heavy tax burden is one of the main hurdles in the way of new home construction. Presently, 36 percent of the cost of a new home is due to tax, fees and levies. The only way to improve housing affordability is to reduce the tax burden.<\/p>\n The provincial initiative \u2013 when combined with the federal measure to eliminate the GST on new homes at or under $1 million for first-time buyers as well as reducing it on new homes between $1 and $1.5 million \u2013 will save first-time homebuyers $130,000 on a $1-million home.<\/p>\n \u201cWe are in the worst housing crisis in a generation, and these unprecedented times require bold, innovative solutions,\u201d Lyall said. \u201cWe will monitor the impact of these measures on the first-time buyer segment \u2013 some of whom build these houses \u2013 and will continue to advocate for other changes which will be necessary to correct the complex problems preventing new housing supply from being produced.\u201d<\/p>\n<\/div>\n![\"-\"](\"https:\/\/www.canadiancontractor.ca\/wp-content\/uploads\/2024\/09\/money-pictures-1.jpg\")
The Residential Construction Council of Ontario (RESCON)<\/a> has commended Ontario premier Doug Ford, Municipal Affairs and Housing minister Rob Flack, and Finance minister Peter Bethlenfalvy for moving to cut sales taxes on new homes for first-time buyers. The province has announced<\/a> it will include a proposal to rebate the entire eight-percent provincial portion of the HST on new homes up to $1 million purchased by first-time home buyers.<\/p>\n