Fraser Valley

Looming HST…what it means for you

It’s coming, whether we like it or not. Starting July 1st, 2010, the HST (Harmonized Sales Tax) will take place, and services and goods which we used to pay only 5% GST on will now be subject to a 12% HST. So what does this mean? Which goods and services are we talking about? Any exemptions? Rebates? If you’re a buyer who will likely be making a purchase after July 1st, read up, it’ll do you well to be informed.

The Rebate

At this point those of us who have been paying attention to the new HST regulations would know that it is only new homes to which the HST will apply. I repeat, resale homes are NOT subject to the HST. However, there is a rebate of up to $26,250 available for new home purchases. See below for the eligible purchases:

• New homes with land
• New homes with leased land
• New mobile homes or float homes
• New home purchased through shares in housing co-op
• Homes newly constructed, or substantially renovated (90% or more) by owner/builder.

For these purchases, a rebate of 71.43%, or 7% of the 12%, of HST paid on the purchase is available up to a maximum amount of $26,250. NOTE: THESE ONLY APPLY TO PRIMARY RESIDENCES. If this is a vacation property or second home the eligibility does not apply.

Presales

The two key dates for presales are 11/18/2009 and 7/1/2010.

• If your agreement was signed before 11/18, and if you take possession either before or after 7/1, you will not be required to pay the HST. You also won’t be eligible for the HST rebate. You may, however, be eligible for the GST rebate offered.
• If your agreement was signed after 11/18, and if you take possession after 7/1, you are required to pay the HST. You may also be eligible for the HST rebate.

Leased Land

• If you have purchased your primary home or duplex together with leased land from a builder, you may be eligible for a rebate of up to $26,250.

Vacant Land

• If you have purchased from an individual that is not a builder, who has never used it for business purposes, you are exempt from the HST.
• If you have purchased a lot that has been subdivided into 3 or more lots, you are subject to the 5% GST if your possession date is before July 1st, even if the title transfers on or after July 1st. If you take possession on or after July 1st, you are subject to the HST.

Building?

This is where things get really complicated…

• If the majority of your construction (that is, again, 90% or more) on or after July 1st, you will be subject to the HST.
• If you newly construct or substantially renovate a residential property to rent it out, you may be eligible for the rebate of 71.43% of the provincial portion of the HST to a maximum of $26,250 per unit priced up to $525,000. If the unit is worth more than $525,000, there will be a flat rebate of $26,250.
  (To qualify for this rebate, the first use of the housing would be occupancy/use by renter or by builder as primary residence for a minimum of 1 year)

–> Eligible units:

1. Detached, attached or condo with or without legal secondary suite
2. Mobile or float home
3. Units in a multi-unit building (this includes long-term care residential facilities)
4. Land component of a single-unit or multi-unit building where the land is leased or is a co-op.

New Rental Apartment Buildings

• If you’ve bought a new rental building and have rented out all of the units, you would be eligible for a rebate of up to $26,250 per unit.
• If you’ve renovated or built a rental property, you must self-assess the value and pay the GST before July 1st, and HST on or after July 1st.

Rental of Land

Rebates are also available for landlords who make an exempt rental of land for residential use (ex. rent out a residential lot, or site in a mobile home park).

• You must self-assess the land and pay HST under the self-supply or change-in-use rules. Rebate is 71.43% of the provincial component of the HST paid up to a maximum of $8,663 (33% x 26,250) for each lot/site.

Residential Landlords

As a general rule of thumb, if you pay GST now, the HST will apply.

• Maintenance costs, including electricity, TV and other services provided to tenants.
• You will not be able to claim input tax credits
• You will not be allowed to recover the HST from tenants; owning residential rentals is an exempt activity and landlords cannot register for GST/HST.

Parking Spaces

• If you rent one…yep, HST applies.

How the HST will affect the buying/renovating process

• Applies to home renovations
• Appliances, insulation, windows and doors
• Residential utility costs, such as hydro, cable, telephone, electricity…but EXCLUDING natural gas.
• Closing costs including appraisals and inspections
• Moving costs
• REALTOR fees or commissions

Questions? Get in touch. amy@vancouverpowersearch.com

Vancouver 2010 Olympic wrap up video!

As many of you might have seen on TV, the city of Vancouver has been absolute mayhem during the 16 days of the 2010 Winter Olympics.

We’ve been working to prepare for this event for the past 7 years…and despite the controversial glitches in the beginning of the event Canada managed to pull it together and emerged victorious at the final US vs Canada hockey game for the goal medal. We ended up winning 14 gold medals, the most gold medals ever won by the Olympic host country.

Several events were held in the Downtown core of Vancouver, including live concerts, light shows, ziplining down Robson Street (which supposedly had a 7 hour wait), and parties virtually everywhere; Granville Street, Vancouver’s main nightlife strip, was just packed during the night hours. Several pavilions were open showcasing the different provinces in Canada and the different countries participating in the games.

I myself visited Downtown a few times during the games, but the most memorable visit had to be after the Closing Ceremonies…walking down Granville was an experience for sure, and it made me so proud to live in this country with such patriotic residents. People dressed in red and white were walking down the streets high-fiving random people in opposing traffic, screaming and cheering and having a blast…all without getting into trouble! There was security probably every few feet but not a single fight could be spotted. At least by us.

It’s not often which we get to experience such a magnificent event in your own city! Hopefully you’ll enjoy the video, which shows a little bit of the Downtown mayhem, both day and night.

Looking for an investment? Check out these villas on the fairway!

Recently I ran into an interesting investment opportunity in Chilliwack, BC, the warmest city in Canada. In Chilliwack rests one of “BC’s best hidden kept secrets”, The Falls Golf & Country Club, home to a breathtaking golf course with expansive views of the hillsides and from Abbotsford to Harrison.

There are currently some big development plans underway in the immediate vacinity including a $250 million dollar multi use sports facility and winter club, with what is going to be one of the world’s largest usable green roof. Read more about it here.

Right on the fairway there is a new construction development, a group of duplex-style homes called the Deercrest Villas. Why are these special, and why are they investment opportunities? These villas are meant to be rentals; purchasers, upon putting a deposit down, sign an agreement with the Falls resort to manage the villa (if they wish to do so, they can of course reside in the property if they’d like to). The Falls then takes care of the leasing of the unit for you.  Since the villas are zoned the same as a hotel is, overnight rentals are legally allowed; visitors can get room service and even spa services right to, and in, their rooms! Another intriguing fact: Australian golf legend Greg Norman is signed on to design the next course in the club. Properties on fairways designed by him typically sell in the mid $2 million dollar range.

See what people are saying about the Falls:

“Home buyers, young families, retirees, and golfers will be treated to a panorama of mountain peaks that form a backdrop to farms that dot the valley below” – New York Times

“One of B.C.’s Top Ten Hidden Treasures” – National Post Golf Review

“Ranked in Top 100 World Destinations for Fishing and Golf” – TSN’s Fins and Skins

“Ranked #2 for B.C.’s Best Scenery, B.C.’s Favorite Course and B.C.’s Best Kept Secret” – Province Golf Guide  (Golfer’s Choice, Best of B.C.)

“One of the most spectacular golf courses I have ever played!” – Steve Tambellini, VP & Assistant General Manager, Vancouver Canucks

“Our Canucks Alumni Ryder Tournament that we play at the Falls each June is indeed a high point on our social calendar. The golf course, the views, the food and the hospitality we’re shown are top notch and sincerely appreciated” – Norm Jewison, Vancouver Canucks Alumni Liaison

There are 8 phases in this development and the first phase has already sold out. The second phase, currently 50% sold out, are for sale for $840,000 and are fully finished ($40,000 is for the furnishings). The third phase and phases thereafter aren’t on the fairway, so phase 2 is your last opportunity for a villa on the fairway! Third phase units are offered at $740,000. For information on what the nightly rate and other financial information, give me a call or send me an email! (trust me, it’s worth taking a look at).

The villas themselves are absolutely gorgeous. They’re basically luxury townhouses, with high end finishings such as granite countertops, two jacuzzi tubs (one in the master, one on the outdoor patio overlooking the fairway), flat screen TVs, hardwood flooring…the list goes on.

The Falls are also offering an incentive at the moment where they’re writing purchasers post dated checks for 1/2 year’s worth of mortgage and property tax payments. Have you heard of that one before? I know I haven’t. To date, not one single investor who has invested in a Deercrest villa has had to pay out anything other than their mortgage downpayment, as everything else has been covered by the rental revenue they have received, and some!

Want to learn more? Get in touch! I’d be happy to send you more detailed information on these properties. Also be sure to visit the Falls website!

Amy Kizaki
Blu Realty
778 855 0841
amy@vancouverpowersearch.com

Tax Assessed Value vs Fair Market Value?

In just this past month, I’ve had 3 buyers tell me that they aren’t willing to pay much higher above what the tax assessed value of the property is. Reason? They all seem to be under the impression that tax assessed value equals what the price of the property should be.

It’s because of this misconception that some listing agents write things such as “priced under assessed value” etc in their marketing remarks, and in turn, partially because of those marketing remarks properties priced under assessed value have been deemed good deals. This is not necessarily true.

ASSESSED VALUE is a valuation placed on property by a public tax assessor (in BC it’s a provincial crown corporation called BC Assessment) for purposes of taxation. Tax authorities, for example the City of Vancouver, then apply their own tax rates to the assessments provided.

FAIR MARKET VALUE is the price that a knowledgable, willing and unpressured buyer is willing to pay to an owner who is willing and is under no obligation to sell their property. Prior to listing a property, the listing agent typically will pull up comparable properties that sold in the last 3-6 months, depending on what they find. They then guide the seller as to how to price their property. The agreed upon price between a buyer and seller effectively becomes the fair market value of that property. This is also why you should take a look at comparable sold listings prior to making an offer; it’s a great way to determine whether the subject property is priced accurately.

Have any questions? Feel free to reach me or my partner Laura at any time.

Amy Kizaki
Team Leader
Vancouver PowerSearch

778 855 0841 direct
604 209 3674 Laura direct
amy@vancouverpowersearch.com
laura@vancouverpowersearch.com

Have you used your home renovation tax credit?

Deadline is approaching! At the end of January 2010, the Federal Home Renovation Tax Credit incentive, part of Canada’s economic action plan, will be coming to an end. If you’re a Canadian homeowner and were thinking of a kitchen remodel or finally landscaping your front or back yard…time to move.

Here’s the low-down on the Home Renovation Tax Credit.

What is it? : It’s a federal non-refundable tax credit based on eligible expenses for improvements to your house, condo or cottage exceeding $1,000 but not more than $10,000.

Maximum credit: $1,350.
Valid period: Purchases made before February 1, 2010.

Eligible expenses must be of an enduring nature and integral to your property (no, new TVs or lawn mowers don’t count, sorry).

Be sure to get your contracts in writing, and keep your receipts. Claim the credit on your 2009 income tax return at the time of filing.

Examples of Eligible Expenses:

• Kitchen, bathroom, basement renovations
• New windows, doors, flooring
• Major remodels such as building an addition, garage, deck, shed or fence
• A new furnace, woodstove, fireplace, water softener, water heater
• A new driveway or resurfacing a driveway, re-shingling a roof, or painting of a house
• Landscaping- new sod, perennial shrubs and flowers, trees, etc
• Swimming pools (must be permanent, in and above ground)
• Fixtures- blinds, shades, shutters, awnings, lights, fans, etc
• Associated costs such as permits, professional services, equipment rentals, and incidental expenses

Examples of Non-eligible Expenses

• Furniture, appliances, tools, and audio and visual electronics
• Routine repairs, maintenance and cleaning (eg. furnace cleaning, snow removal, lawn care, pool cleaning, house cleaning)
• Financing costs

For more information on the tax credit, call 1-877-959-1CRA or visit www.actionplan.gc.ca.

Hope that you’ve all had a fantastic holiday season and a great New Years! 2010 is going to be an exciting year for Vancouver and we wish you all the best as well!

2 spots left! Superb deal on Rach Park Lodge Golf Getaway

What are YOU doing on September 13th? If you’re a golfer, you might be interested in this fantastic deal offered at my listing, the Ranch Park Lodge.

Get this: the regular green fee rate to play The Falls Resort on Sunday September 13 is $91.87. For an extra $13.41 here’s what you get:

• A round at The Falls Resort
• A night at the luxurious Ranch Park Lodge
• A plate of Nachos and 12 ice-cold Coronas upon arrival
• A round of 9 holes at Bridal Falls after check-out before the drive home

Please note: These prices are based on 4 people attending and include all taxes and we must sell all four spots or the getaway will be cancelled.

Itinerary:

Sunday September 13, 2009
11:00am: Tee-off at The Falls Resort for 18 holes of championship golf including GPS enabled power carts.
4:00pm: Check in at the Ranch Park Lodge where we will have 12 ice-cold Coronas and a plate of Nachos waiting for your group. Then spend a relaxing evening enjoying the first class amenities.

Monday September 14, 2009
10:30am: Check out of the Ranch Park Lodge
11:00am: Tee-off at Bridal Falls for 9 holes

The Fall’s Golf Resort
The Falls Golf Resort offers a haven of unique mountainside golf and exceptional guest service in a spectacular West Coast setting. Breathtaking views, towering cedars and cascading waterfalls combine to deliver an unforgettable golf experience.

Ranch Park Lodge
This is one of the finest vacation rental properties in Chilliwack. It is a luxurious and spacious 3-bedroom hand-crafted log home, surrounded by a forest of towering cedar trees. In each level there is a great room with a massive natural rock fireplace. The upper great room has a twenty-six foot vaulted ceiling and a wall of windows. The lower great room/games room has a 56″ TV and oak card table complete with cards, poker chips, chess set, backgammon, kids games and more. And there’s High-Speed Wireless Internet for your lap top.

The Grand Master Bedroom is larger than the other 2 and has its own balcony and Jacuzzi tub. You may need to flip a coin to see who gets it or maybe the person who hit the most fairways and greens at The Falls should take possession, just my 2 cents. (Middle bedroom has two beds, lower bedroom has a double bed, lower great-room has a double sleeper sofa-bed).

Bridal Falls Golf Club
Located at the base of Cheam Mountain and within earshot of Bridal Falls, this is one of the most beautiful and challenging executive golf courses in the Fraser Valley. The course has been cut from natural rain forest with two large lakes and many large river/silica sand bunkers strategically placed to penalize errant shots.

The regular rate for all of the above is $221.44 per person so basically you are getting over a 50% discount. The first four that pay are in and you can bring up to three guests if you like.

Give me a call at 604.209.3674 for some more information, or visit this link. Happy Golfing!

Gorgeous vacation log home for sale!!

Contact: Laura Howren
604.209.3674
laura@vancouverpowersearch.com
Blu Realty

The Ranch Park Lodge is for sale!!

New! Asking price: $889,900
3 bedrooms
3 bathrooms
2680 square feet
2.496 acres
Gorgeous valley & mountain views
Quality finishes
Move in as your primary residence, or keep it as an income generating executive vacation rental

Welcome to Ranch Park Lodge!  One of a kind log home situated on private acerage, surrounded by epic views and natural British Columbia forest and only minutes from world-class golfing, fishing and lakes perfect for boating activities. Hand crafted finishes include Cedar-lined vaulted ceilings, two natural rock wood-burning fireplaces and an expansive deck perfect for relaxing. Move right in or keep it as a furnished executive vacation rental for a profit. Furniture is negotiable. By far the best value on the market! Just an exit away from Harrison Hot Springs. Visit www.RanchParkLodge.com for information on the rental business.

Click here for a virtual tour and additional pictures

Vancouver Real Estate Sales break records in July

And we thought June was a great month for the Vancouver real estate market.

The Vancouver Sun reported a couple of days ago that both the Metro Vancouver and the Fraser Valley real estate boards reported record home sales for the month of July. Below are the juicy details (aka the numbers)!!

July Sales for Vancouver Real Estate

4,114 sales in Metro Vancouver (via MLS)
–> 89% increase from July 2008
Price of typical single family home in Greater Vancouver area: $711,702
–> -5.5% since July 2008
–> +10% since beginning of 2009

2,089 sales in Fraser Valley (via MLS)
–> 62% increase from July 2008
Price of typical single family home in Fraser Valley area: $477,420
–> almost -6% since July 2008
–> almost +4% in the last 3 months

Of these sales, a whopping 37% were comprised of first time home buyers.

#1 Place to Live!!

Vancouver has come out on top of a recent Livability survey!

Its not that surprising for the people that have already moved here, lived here or has ever been here.  But it might surprise people who have not been to Vancouver. Here is the Full Story.

http://www.news1130.com/more.jsp?content=20090608_174330_9272

Makes me proud to be living in a world class City!

Government’s Action Plan for the Economy and how it affects Home Buyers and Home Owners.

Earlier this year Prime Minister Stephen Harper rolled out Canada’s Economic Action Plan. In it there are some plans to help current home owners and First time home buyers.

Current homeowners would be able to get tax incentives or relief up to $1350 for renovating their current home between Jan27,2009 and Feb 1, 2010.

For First time home buyers, the withdrawal limit from your RRSP’s has been increased from $20,000 to $25,000. Withdrawals have to be made after Jan 27, 2009.

Also for first time home buyers, there is up to $750 of tax credit for closing costs for those who purchase after Jan 27, 2009.

for more information and full details go to www.actionplan.gc.ca

Edison Chua
Real Estate Consultant
604 – 728 – 1939

edison@vancouverpowersearch.com

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