Wouldn’t it be great if the proposed GST reduction from 6% to 5% became reality? The federal government announced plans to reduce the GST on October 30, to come into effect on January 1 of 2008. Wow. I still remember when it was dropped from 7% to 6%.

So how does this affect you when it comes to real estate?

Well, since GST is added to the price of residential structures that have just been constructed or greatly renovated, home buyers will most likely be pleasantly surprised.

The 6% rate will apply to all new or renovated homes if there is a transferral of ownership or possession prior to January 1 of the new year.

If transferral occurs after January 1, 2008, 5% will be applied.

This entry was posted on Thursday, November 22nd, 2007 at 9:10 am and is filed under Financial Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.