If you buy a pre construction condo, you need to pay HST (harmonized sales tax) on the property value or purchase price, whichever is higher. There are two options to pay the tax either through a cash deposit at final closing or through a mortgage. Most builders include HST in the offered price, but some quote “X+HST.” In this case, you need to pay the tax upfront. While buying preconstruction, you are entitled to a rebate, which most of the time is factored in the offered price by the developer.
If the offered price is not inclusive of the HST rebate, you must apply for New Home Rebate (NHR) if you intend to use the condo for residential purposes. You can avail of this rebate if you or your immediate family member uses the apartment as a primary residence for at least twelve months after the final closing. If you opt to sell the condo within one year from the final closing, you must revert the rebate to Canada Revenue Agency (CRA). Both citizens of Canada and foreigners are entitled to New Residential Rental Property Rebate while purchasing a pre construction condo.
Fastest growing metro
Vaughan is one of the fastest-growing metros in Canada from1996 to 2006. The city is only thirty minutes drive through Don Valley Pkwy from Toronto, which provides the most convenient highway for Vaughan citizens. One of the most attractive features of this city is Canada’s Wonderland, an amusement park with more than two hundred rides and other water rides. Vaughan Mills Shopping malls offer the most trendy, fashionable attire, delicious foods, and refreshments. There are many cafes, restaurants, shopping malls, schools, parks, and lots of open greenery around new condos in Vaughan. You will enjoy all urban amenities in a quiet, peaceful surrounding.
Vaughan’s real estate market shows a sharp uptrend with quarterly price appreciation of 14.7% and an annual 10.1% as of April 2020. The average price of the stand-alone condos and townhomes stands at $1 million. The cost of condos may range from $537 000 to $600,000 as of April 2020. Three bedroom apartments are showing remarkable appreciation 52%, quoting at $820,000. The precise location of the condo, floor area, amenities, and reputation of the builder affects the condo price. Irrespective of the size, the prices of condos are showing significant appreciation in the last few decades.