Real Estate agents....can u explain land transfer tax?

Tooljunkie said

2% in manitoba. That’s 14,000 on 700,000 home.
I bought 20 years ago,50 acres,6 outbuildings,and. 1200 sq foot bungalow. basically a farmyard for cheap. Its more than doubled now.
And im breaking off the farmland. Bank appraisal doesent change. Go figure.

Click to expand...

Here in the lower mainland, $700k will buy you a 525sq ft condo. Annual property taxes of $2k. Monthly maintenance fee of $350. Property transfer tax on that $700k is 2%. That 2% goes to $2M at which point it’s 3% over $2M.

You want a house? Double that and it will get you an 80 year, 2k sq ft house on a 5k sq ft lot with annual property taxes of $5k.

In 2021 the Province collected a little over $3B of revenue from the property transfer tax.