Income Properties with Permits issued after April 2017 will see huge reduction in Taxes for 35 years.
A new bill has just been passed by the Ontario Government concerning properties with 2 or more units in them, where the permit was issued after April 2017.
These building owners are about to get a break on their property taxes, for 35 years! So, if you own an income property and the permit was issued after April 2017, you will have a nice surprise coming your way, for 35 years. And, an even bigger bonus if you just bought a building like this! (the old owner might be miffed)
You can hear Patrick Walchuk discussing this news at the end of this months movie update, go to 1 minute 43 seconds to hear his take.
As an example, when we do the financials for any property we usually find out that the property will produce a small cash flow of a few thousand dollars per year. If you are in this situation, your cash flow could double, triple, or even more.
The taxes on these types of properties could be 50% less as we have just seen this happen in an 8 unit building.
The Ontario Government are doing this to encourage people to build more Multi-Unit Residential properties.
MULTI-UNIT RESIDENTIAL PROPERTY CLASS
Below is the transcript from the larger document, outlining the changes to the Multi-Unit property class, with permits issued after April 20th, 2017.
This news is just out and we are still trying to get more details about it and we will update this page as we find out more. We are sure there will be some issues as we progress.
What about that person who built a 20 unit building 1 week before this new law. They could be paying $28,000 per year in taxes, while the exact same building next door is only paying half that amount, for 35 years. Big Big savings if you work this right.
Will we see a bunch of people jump on this opportunity, let's wait and see.
Are you looking to buy, have a look at some Income Properties for Sale, or get in touch if you want to sell your building.