Monarch Introduces "Sales Tax Protection Program"
I received an interesting email from Monarch today that stated:
Unsure of how the Harmonized Sales Tax (HST) will affect your condominium purchase?
Let your confidence soar withÃƒâ€šÃ‚Â Monarch!
MonarchÃƒâ€šÃ‚Â understands your concerns about the Government of OntarioÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s intentions to harmonize the PST with the Federal GST.
To ease your concerns of buying a new condominium and to assure you that the purchase price of your suite is not increased by the harmonized PST,Ãƒâ€šÃ‚Â MonarchÃƒâ€šÃ‚Â has implemented a ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œSales Tax Protection Plan*ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â which guarantees you thatÃƒâ€šÃ‚Â MonarchÃƒâ€šÃ‚Â will pay the additional tax if the additional ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œHarmonizedÃƒÂ¢Ã¢â€šÂ¬Ã‚Â PST applies to the Purchase Price of your Suite while this program is in place.
As the email states, Monarch is offering to pay the additional taxes incurred if the Provincial government goes through with its proposal to harmonize the PST and the GST which will effectively mean that all new homes and condos will be subject to a 13% tax (as opposed to just the 5% GST).
They are the first developer I have heard to do this. I suspect others will follow with similar promises.
Yet another example of a developer trying to instill confidence in buyers and stimulate demand in a stagnante market.
The most interesting thing from my perspective is that it shows that developers (even large ones like Monarch) are getting more responsive and are adapting faster to the marketplace. And they need to. Buyers are looking to buy in developments where they feel that the developer ‘gets it’ and does not have their head in the sand with respect to the current economic conditions.
I’d love to hear your thoughts. Leave me a comment or contact me directly.