North Vancouver

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.

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!

North Vancouver Tour – Part I

Join Us On a Tour of North Vancouver!

The North Vancouver Tour with Christina and Amy Part I takes you on a journey starting at the oldest neighbourhood, the Lonsdale Quay in Lower Lonsdale, then heading north west over to Edgemont Village. From here the tour continues up to the Capilano Suspension Bridge and then even higher up the hill to the landing at Grouse Mountain.

Please enable Javascript and Flash to view this Viddler video.

The Lonsdale Quay is home to over 90 speciality shops and services, some which include fresh locally grown produce, popular fish market, international cuisine, soup shop, homemade Italian goods, fresh cut flowers, aromatherapy shop, locally owned and operated boutiques, a kids play area and even a hotel and spa.

There are a number of new developments currently underway or recently completed in the Lower Lonsdale area of North Vancouver just walking distance to the Quay. Although already established, this area is very up and coming with a mix of young professionals, empty nesters, couples and singles alike. The new developments on the waterfront are very modern comprised mostly of glass and steel mirroring buildings of downtown Vancouver. It proves to be a door step for those commuting to Downtown Vancouver and only takes a 15 minute relaxing seabus ride across the water to get you there. The view of the ocean and mountains is absolutely breathtaking and this is quickly becoming one of the most popular areas to live in North Vancouver.

Edgemont Village is a community hub in North Vancouverwhere a large number of young families live. The village is only a few blocks long but has a number of quaint owner owned and operated stores, boutiques, hair dresser and barber, galleria, home decorative stores, fresh fish and chocolate shop. The feel here is relaxed and artsy, great for those who are looking for a neighbourhood atmosphere and small town charm.

Next was off to Capilano Suspension Bridge, one of Vancouver’s first tourist attractions. Take a look at the view and watch Christina and Amy cross the 137 meter bridge! Take advantage of the great rates for residents or come and visit on your next trip to Vancouver.

Grouse Mountain is a major draw for residents and tourists. There are so many activities and sights to see for people of all ages. During the summer months you can take a ride up the gondola to check out the gray wolves and brown bears at the wildlife refuge,  grab a bite to eat overlooking the entire city, go hiking on the Grouse Grind, go ziplining for those adventurous people, mountain paragliding, or take a mountain helijet. In the winter take advantage of snowshoeing, ice skating, sleigh rides, sno-limo, or enjoy scenic and educational performances at Theatre in the Sky. Many residents in the area go hiking in the nearby trails, Vancouver is home to some of the most active and environmentally friendly people in Canada. Grouse Mountain recently raised the Quiet Revolution on top of the mountain which gives independant,  wholly sustainable energy helping to produce 20-25% for the mountain.

If you require any further information about these different sub regions in North Vancouver, Contact Us.

Remember, this is part one of the North Vancouver video blogs that will be published online. Check back to see the North Vancouver Tour Part II which will include Lynn Valley and Deep Cove.

Lonsdale Quay in Lower Lonsdale, North Vancouver

North Vancouver’s Lonsdale Quay is a hub of activity! The Lonsdale Avenue corridor is the most heavily populated residential and commercial area in North Vancouver which offers a large variety of restaurants, unique and trendy clothing stores, art galleries, performing arts theatres, a major recreation centre and state-of-the-art library. There is a nice balance and mix of single family homes, townhouses, and small to high-rise condominiums all within walking distance to the waterfront Lonsdale Quay.

The Lower Lonsdale neighbourhood, located on the City’s waterfront across from downtown Vancouver, is currently being redeveloped and renewed. The area is home to popular tourist attractions, such as the Lonsdale Quay Public Market, 700-foot long Pier and Waterfront Park. There are current plans in the works for a new hotel and conference centre, North Shore Spirit Trail, and proposed National Maritime Centre. Lower Lonsdale is quickly becoming a highly sought after area to live and a must-see destination for visitors.

North Vancouver’s wooded trails and bike routes are an excellent opportunity for those interested in outdoor recreation and active, alternative transportation. The City is committed to keeping their vision of sustainability and working on becoming an even more vibrant, diverse and liveable community!

If this sounds like an area you’d love to call home contact our Vancouver Team for further information on current listings.

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

North Vancouver Real Estate

The City of North Vancouver has an urban feel. Surrounded to the west, north, and east by the District, the City is home to the majority of the North Shore’s high rise buildings, rental properties, and commercial operations. As with the District, there are industrial sites along the shore of Burrard Inlet, although in recent years several of these have begun to convert to residential and commercial areas. The City also has the Lonsdale Quay public market and the northern terminal for Vancouver’s Seabus transit ferry. Regional planners have identified the City, and specifically its Central Lonsdale and Lower Lonsdale neighbourhoods, as the “downtown” of the North Shore.

Activities

The very rugged nature of the North Shore Mountains, including, predominantly, Grouse Mountain and Mount Seymour, have contributed to this area’s reputation for hiking, skiing, and perhaps most famously, mountain biking. Many trails are featured in popular mountain biking videos. The Baden-Powell Trail runs from Horseshoe Bay to Deep Cove. This trail is host to the annual Knee-Knacker, which is a half day long run along the trail’s entire length of 50 kilometres. (The race is so named for the cuts and bruises frequently covering the runners knees when they cross the finish line.) The District is also home to the renowned Grouse Grind hiking trail, a steep vertical climb.

The North Shore is also the birth place of “Shore Riding”; a specific style of riding that involves hand made ladders, bridges and logs. The structures range from the simple to the elaborate, the best being made of cedar. They are used to navigate difficult terrain, rivers, swamps and muddy areas. The Shore is also known for its steep, slippery, wet, technical, rooty and generally nasty terrain.

The Capilano River is the site of the Capilano Suspension Bridge, one of the biggest tourist attractions on the North Shore. Indian Arm, an offshoot of Burrard Inlet, is well known for its sea kayaking and is the setting for Deep Cove. Other prominent tourist attractions include Lynn Canyon Park, the Capilano Fish Hatchery at Capilano River Regional Park, and the Maplewood Flats conservation area.