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Essential Fees That Sellers Needs to Pay for Pre-Construction Properties

Canadian fees

Before you pay for the pre-construction property that you are about to purchase in Toronto, you need to determine the fees you need to pay. This is not just only for the purpose of the legality of the process, but to assure that you are undergoing complete and in detail process that can allow you to obtain huge amount of profits from these pre-construction condos.  There are several fees you need to pay for and these are as follows:

 

  • Assignment Fee

Are you aware of the hidden costs of the pre-construction condos? Well, one of the most essential things with regards to the selling process of condos in Toronto is that you can’t own the property technically and straight-forward rather it will cost you a lot. Registration plays an essential role in the ownership and legal entity of the unit that will be transferred into the buyer. You can’t have the ability to sell for the condo without paying for additional fees until it had been registered. This will take few months and years before the interim initial occupancy will be given.

 

To make the process easy and simple, you need to sell it through assignment fees which includes paying a certain fee and working with its developer. Individual developers are unique from each other as they set their own terms and costs of assignment clauses. They are also dependent on the approval of the builder for the property, too. Thus, if you are going to sell your property on a title plan basis, you need to plan for its assignment fee at around 1% from the cost of the condo.

 

  • Income Tax and Capital Gains

If you plan to sell for pre-construction condos in a short period of time after its closure, the tax exemption for principal residency will not be applied. If you cannot completely approve to fulfil all the requirements for PRE, you are already at the minimum hook of the taxes for capital gains. This is not considered to be a surprised as most of the investors today are obliged to pay for their income tax that costs them an additional expense.

 

The capital gains and income taxes of pre-construction condos in Toronto are considered to be a journey of trade which manifest taxable incomes. It is completely true since there are condo flippers who are simply and conveniently dodge about their taxes while processing it to be tough.  This is the reason why professional people in this field of business are investigating huge numbers of flips in Toronto every year in order to assure of the legality of the process.

 

If you are caught with this type of action, you need to pay for the taxman and you could be obliged to undergo negligence penalties for your actions. Thus, you can’t have the ability to outrun your taxman. This is the reason why you need to completely educate yourself first about the laws for real estate capital incomes and taxation before deciding to invest in your properties.

 

With these two important fees, you are given high percentage of assurance that investing a property in Toronto specially those pre-construction condos will be all worth it. This can effectively allow you to obtain huge amount of profits from the property you have invested in with less risks and losses.

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