For those of you who don’t know, Mattamy is the largest land owner in the new development of North Oakville which is the area North of Dundas. At the heart of discussions is Mattamy’s concern over a proposed increase in new development taxes. When a new home is built, the developer has to pay a development charge to both the region and local government in exchange for certain developmental services such as roads and utilities, park development, fire and rescue services, additional library and recreational services, etc. Ultimately, these development charges are passed down to new home buyers as reflected in the purchase price of their home.
Oakville’s current development tax is already significantly higher than other surrounding communities (see figures below). On July 15th, Halton Regional Council is voting on a proposal to raise the development charges by $8,000 per lot to $55,200. To exacerbate the issue, a further $9,000 charge is being contemplated by Oakville Town Council, bringing the potential charge for a small detached lot in Oakville to $64,200.
Current Development Charges for small detached or semi-detached lots:
Oakville’s current development charges are roughly 47% higher than Mississauga, 27% higher than Aurora and 58% higher than Pickering. The proposed increases to $55,200 and $64,200 will respectively bring charges in Oakville a whopping 72%-100% higher than our neighbours in Mississauga.
It is not unusual for Oakville to charge higher than average development costs as it also provides its residents with great services and a great community. Charges in excess of 50-100% do however make one question exactly how this money is being spent. The question is whether or not the developers and new buyers are being forced to take the hit for shortfalls in government money no longer being passed down from the federal and provincial levels.
Development conversations have been on-going on for six long years now and all are excited by the North Oakville development plan. The longer these developments are delayed, the higher the cost of development to potential buyers. One of the effects of new developement: the improvement of town services through an increased tax base being just one positive impact of new development.
If you would like to discuss the purchase of a new home in Oakville, please fill in the sign-up form below with correct contact information and you will be contacted.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of service provided by the real estate professionals who are members of CREA. Used under license
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license