Radio Questions April 5, 2014
1 I had to pay the welcome tax when I bought out my ex. Was it because it was a duplex?
Normally when you buy out a spouse or a property is transferred from a parent to a child then you do not have any welcome tax to pay. You will have a $250 charge from the city for the transfer but that is all. It is the notaries responsibility to make sure they advise the city that it was a spouse that you are buying out or that it is a parent transferring. If they do not advise the city then you will have to pay tax. This is regardless of if it is a Duplex or a triplex or a condo.
2 It’s illegal, The tax assessment should be higher with an extra apartment even a bachelor
Having a bachelor that is not registered is not illegal
provided that the revenues it generates are declared to the CRA and RQ. Municipal
Tax assessments have nothing to do with the number of units in a property as a
matter of fact in some cases the more apartments you have the lower your
municipal assessment will be. You do however have to follow all of your municipality’s
rules and guidelines to make sure that all zoning bylaws are followed.
3 Do I have to pay the welcome tax again if I’m buying out
As mentioned in above answer. No, however, please advise the notary
that you are buying out a spouse so that you do not accidentally get taxed,
4 Would like to know where to take the real estate classes
and how much?
Real estate program can be taken at College Immobilier in Nuns Island
or College Lasalle in downtown Montreal.
Costs are I believe around $3k but I could be wrong please verify with the
5 Do you have to pay the welcome tax if you flip a house?
Thank you, Sam, for putting your name in the text… In short
yes you do. In a flip, you must take this extra cost into account so that you
can properly calculate your cost of acquisition of the property. As well you
should know that the municipality will always charge you the higher of either
the cost of acquisition or the municipal tax evaluation.
Use the following as a way to calculate what you will pay.
Based on 2012 rates, the amount
of tax to be paid is calculated in the following manner:
- 0.5% on the first 50 000$
- 1.0% on the portion between
- 50 001$ & 250 000$
- Outside Montreal Island :
- 1.5% on the portion that exceeds 250 001$
- In Montreal (Since January 26, 2010) :
- 1.5% on the portion between 250 001$ & 500 000$
- 2% on the portion between 500 001$ & 1 000 000$
- 2.5% on the portion that exceeds 1 000 001$
6 Due to the actual political reality in Montreal, how much the real estate market is down?
Despite all the political turmoil Montreal has gone through surprisingly the
market has been very stable. The Montreal
condo market has been impacted by the amount of inventory available to buyers. Moving
forward with a stable government in Montreal
we should see an increase in the market over the next couple of years.
Thank you, everyone, for all your questions. As always I am
here to make sure that all our listeners stay informed and that they make wise
buying and selling decision.
On this weeks show Eleni Akrivos President of North East
Realties will be replacing me and she will be talking about the post-election
realities of the Montreal
real estate market.