Realtors urge Houston to reconsider deed transfer tax hike for non-residents

The Nova Scotia Association of Realtors, representing nearly 2,000 Realtors in the province, is urging the Houston government to reconsider its plan to double the deed transfer tax for non-residents purchasing homes in Nova Scotia. The proposed increase would raise the tax from five percent to 10 percent, effective April 1.

Suzanne Gravel, the incoming president of the association, expressed concerns about the negative message this tax hike would send to potential investors. She likened the increase to a tariff and questioned the government’s commitment to fostering freer trade and attracting business to the province.

John Duckworth, a real estate agent in Chester, Nova Scotia, who specializes in selling properties to non-resident clients, echoed Gravel’s sentiments. He believes that the tax hike would discourage people from moving to the province and negatively impact Nova Scotians selling their properties. Duckworth emphasized that sellers may have to lower their prices to offset the tax increase, affecting the overall real estate market.

Economist Lars Osberg from Dalhousie University explained that the tax hike would impact both buyers and sellers, potentially leading to lower property prices. He highlighted the concept of price elasticity of demand and supply, indicating that sellers may have to accept lower offers to sell their properties.

Finance Minister John Lohr defended the tax increase as a way to provide Nova Scotians with a competitive advantage in the housing market. However, Gravel and Duckworth disagreed, suggesting that the tax would not benefit local buyers and could deter out-of-province investors from contributing to local economies.

James Wooder, a Cape Breton resident, expressed concerns about the potential repercussions of the tax hike on rural communities. He worried that the increase could depress real estate prices and have unintended consequences for local municipalities and developers investing in the province.

In conclusion, the Nova Scotia Association of Realtors is calling on the Houston government to reevaluate the proposed deed transfer tax increase and consider its impact on the real estate market and local economy. The association believes that the tax hike may deter investment and hinder economic growth in Nova Scotia.