MORTGAGE Blog & ARTICLES
Realtors Avoid the Issue of Fees
The Toronto Real Estate Board, or TREB, has been in a difficult situation after being the host of the Doug Ford’s campaign event to let him promote the planned cut of 15 percent to the land transfer tax of the city. However, it was not the event that was criticized but the reaction regarding the fees of the realtors.
A television reporter has touched the subject about the fees which exceeded the transfer taxes, he was told by the 2 executives of TREB that such topic does not call for a debate. The most recent figures coming from StatsCan suggested that the realtors make about 13 percent more for 2014 compared to the previous year. And, based on Toronto’s average house amount in September, the realtors can pull in about $28, 000 on sale. It has been twice the tax costs.
The Toronto Real Estate Board has been established as a not-for-profit corporation in 1920. It has been developed by a small group comprised of real estate practitioners. In the present, it is now the biggest real estate board in Canada and it serves over 39, 000 licensed real estate Salespersons and Brokers. This has been a collective voice designed for both residential and commercial REALTOR Members. It has been operating under the assistance of the elected voluntary Board of 16 Directors.
Such comparison has never been fair. It is due to the reason that individuals are more concerned of the government tax issues compared to what they are doing with the commercial fees.
Canadians should consider 2 facts: their household debt is always high while home prices continue to rise. The record high indebtedness indicates that Canadians became more vulnerable as they are before. Indebtedness has been an accident that is anticipated. In addition, higher costs of home properties continue to hurt Canada because of reduced competitiveness. Higher Toronto home prices mean that TO workers are going to demand for higher wages. This results in reduced competitiveness as stated by Ed Clark, the CEO of TD Bank.
There are given reasons why most realtors get rid of the issues regarding fees. Some of them as the following:
- The more they pay, the lower their subsequent returns.
- Home prices have been unsustainable high provided incomes.
- Over time, real estate can never outstrip the growth of the economy.
- The debt loads of Canadians are at the record high level.
- Renting has been cheaper.
- Do not trust economists. These people may not only be biased but they can give you wrong information. They stated that home prices have been cheaper now because of lower interest rates. However, history suggested that interest rate changes over time.
- Risk-reward has never been there.
There are still other minor factors considered why most realtors do not participate in these issues. However, some of them are not convinced that there is a housing bubble in Canada. By looking at the points given above, you might have different perception about this aspect.
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