The Real Impact of HST On Vancouver Real Estate

http://kyegrace.com There have been numerous media reports and statements by the Real Estate Boards on how the HST will impact Real Estate in Vancouver and the rest of British Columbia. While I think how the additional tax on Realtor's fees, legal costs, inspections, appraisal etc will impact affordability is a valid concern, I feel there is a far bigger concern. The impact on the overall economy. If the HST causes the economy to recede, then the additional tax on closing costs becomes moot if people are not buying Real Estate. The two industries that are the most likely to get hit the hardest are construction and restaurant/food & beverage. These two industry employee a significant number of employees. If lay offs do happen in significant numbers then odds are the impact will be felt through out the economy. What will compound this problem is that one of the common topics to report on during a economic downturn is job losses. Reports of job losses makes the majority of the population nervous and they often reduce their spending in case it happens to them. And of course this means not buying a new home, hence a simplified version the real impact on the Vancouver Real Estate market in my opinion.