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

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.

Click here to view the embedded video.

Click here to view the embedded video.

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

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.

Click here to view the embedded video.

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!

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.

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!

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

Coquitlam is a city in the Lower Mainland of British Columbia, Canada. Coquitlam is mainly a suburban city, and is one of the 21 municipalities comprising Metro Vancouver. The steady growth continued throughout the first half of the 20th century, helped in part by the region’s strategic position on Canada’s west coast. The opening of Lougheed Highway in 1953 made the city more accessible and set the stage for residential growth in the early 1960s. Coquitlam experienced a period of boom in the mid-1970s that continues today.

Coquitlam, with a land area of about 150 square kilometres (58 sq mi), is the largest municipality in the Tri-Cities region. Compared to other cities and municipalities in Metro Vancouver, this area had a late start in economic development. It was not until the 1950s that the region’s land began to be tapped for extensive use.

Central Coquitlam contains Como Lake, a renowned urban fishing and recreation area, and headwaters for the Como watershed. The watershed represents one of the last urban watersheds in the Tri-cities that supports wild stocks of coho salmon as well as other species at risk such as coastal cutthroat trout (both sea-run and resident) and bird species such as the great blue and green heron.

Coquitlam has a considerable number of open green spaces, with the total area of over 890 hectares (2,200 acres). There are over 80 municipal parks and natural areas, with Mundy Park being among the biggest, located roughly in the centre of the city; Ridge Park is another major park located in the highlands near the city’s northern edge.

Port Coquitlam

Located 27 km east of Vancouver, Port Coquitlam sits at the confluence of the Fraser River and the Pitt River. Coquitlam borders it on the north, the Coquitlam River borders it on the west, and the cities of Maple Ridge and Pitt Meadows lie across the Pitt River. Port Coquitlam is almost entirely bisected by a Canadian Pacific Railway yard with two underpass crossings. Port Coquitlam is often referred to as “Poco.”

Port Coquitlam has now become mostly suburban housing, especially on its northern and southwestern sides. The economy has diversified with a variety of industrial and commercial developments, including metal fabrication, high technology industries, and transportation.

Port Moody

Port Moody, British Columbia is a small, crescent-shaped city in Metro Vancouver, located at the east end of Burrard Inlet in British Columbia, Canada. Port Moody is the smallest of the Tri-Cities, bordered by Coquitlam on the east and south, and Burnaby on the west. The villages of Belcarra and Anmore, along with the rugged Coast Mountains, lie to the northwest and north respectively.

In 2006, the City of Port Moody had 27,512 people in 10,125 private dwellings living within its borders . This population growth was a 15% increase from the last census taken in 2001.[1] Booming residential construction may account for part of this population growth; 8,015 residential dwellings are owned while 2,115 are rented. Port Moody also has the fourth highest municipal median family income at $70,239, with its largest employers being the Eagle Ridge Hospital and Health Care Centre and School District 43.

Port Moody’s economic development focus in recent years has been on the arts and culture sector, including the development of a new Port Moody identity as the “City of the Arts.” An estimated 6% of employment in Port Moody is in arts and culture, which is one of the highest concentrations of arts and culture employment in the region.

Port Moody is home to beautiful Rocky Point Park. 3.8 hectares of space, the park has hiking trails, a newly renovated spray park, a skate park, a bike trials park, a playground, a picnic shelter, a boat launch and a recreational pier. Home to Golden Spike Days, the park is a popular destination in the summer.

Bert Flinn Park is a mountain bikers’ paradise. 138 hectares of largely undeveloped parkland, there is an extensive unmarked trail system along old logging roadbeds: look closely to see evidence of this industry which flourished here in the early 1900s. The park also has an off-leash dog walk.

Finishing construction in 2008, Port Moody has renovated its recreation complex. Home to an Olympic size ice rink, this new facility will have an indoor running track, a state-of-the-art gym, a curling rink and an athlete’s lounge. The Port Moody Happening, a quarterly publication, features all recreation programs offered at this new facility.