THE B.C. HARMONIZED SALES TAX
HOW IT AFFECTS BUYERS OF REAL ESTATE
The following is a quick overview of the upcoming HST Tax. Please consult your Accountant for all the details and how it affects your financial situation.
1. The Harmonized Sales Tax (HST) is 12% tax applicable to most goods and services.
2. The new B.C. HST is the combination of the Federal Goods and Services Tax (GST 5%) and the Provincial Sales Tax (PST 7%).
3. Implementation of the BC Harmonized Sales Tax takes place July 1, 2010.
4. The HST is NOT a 12% real estate tax, but a provincial harmonized tax on most goods, services and consumer products including new homes.
5. Currently, new B.C. and Vancouver homes are subject to 5% GST in which first time homebuyers or investors can recieve GST rebates. his GST will be replaced with the higher HST , a 7% difference in taxes on the total purchase price of a new B.C. home or property.
6. The B.C. HST program will give partial rebates for new B.C. homes priced up to $400,000. The government will give these homebuyers a partial 5% rebate on the provincial tax side which makes any new B.C. home or property $400,000 or less no more expensive than it is today.
7. Homebuyers looking to buy new property over $400,000 will receive a maximum rebate of $20,000 but will see the purchase price above that level subject to the extra 5% tax rate system.
8. The HST is also applicable to any costs and fees associated with your property/home purchase including legal/notary fees, commissions and other closing costs.
9. The HST transition rules are unclear at this time. It's unknown whether new B.C. home sales contracts written before July 1, 2010 but completed after the HST launch date will be subject to the current 5% GST only or the entire 12% new HST tax.
10. The cost of a new home ownership wil increase significantly in B.C. due to the new HST. Not only will your new home or property cost more up front, but the HST is also applicable to such items as: strata fees, residential heating fuel, commercial rents, smoke detectors, repairs, fire extinguishers, cable TV, internet services, electricity, gas, renovations, painting and other professional services.
ARE YOU CONFUSED?
PLEASE CONSULT YOUR ACCOUNTANT FOR CLARIFICATION
AND HOW IT AFFECTS YOUR FINANCIAL SITUATION.
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BUYING ?
Let me help you every step of the way. When purchasing a home, you are faced with a multitude of decisions! The primary one is whether you're actually prepared to purchase a home. Locating the perfect home is not always an easy task, and obtaining a mortgage loan can be a complex and tiring process. Although, once you have determined that you are ready to move forward with the required effort towards your home-purchasing goal, the rewards are unquestionable.
While at your side each step of the way, I'll make the process of purchasing a home easier, more enjoyable, less time-consuming, and less expensive than if you undertook this challenge on your own. I'll help you locate and assess properties for sale that match your specifications, and help you through the myriad of details attending the actual purchase.
I spend a lot of time keeping on top of the market, and I know neighborhood values well, so I can help you determine which properties are fairly-priced and in good condition before you even start your search.
1ST STEP
Your first step to buying is to first ask yourself why you want to buy something! To start building equity? To have a place of your own? To raise a family? To entertain business associates? To move up to a bigger house? Next, list what kind of home you'd like and where you'd like to be. Be specific. Separate the "must haves" from the "want to haves."
Think of yourself as zeroing in on a target, going from the general to the specific. Consider area (city, suburban neighborhood, country); community (north, south, east, or west side); neighborhood (older and settled or sparkling new; a particular school zone; recreational facilities; and other community services such as transportation, day care, library, stores, entertainment). Ask yourself how many minutes you are willing to commute to work.
Think about home styles. How much space do you need? Does your situation require a one-level home, or are stairs acceptable? Consider size and kind of property. Do you want a newer home, or maybe an older one to fix up? Someday you or your heirs will want to sell. Consider how long you expect to live in this particular home.
NEXT STEP: LOAN PRE-QUALIFICATION
Once you've addressed the above needs, your next step in the purchasing process is to get pre-qualified with a mortgage company. This can be done over the phone or even online in a matter of minutes. I can help you with some of the great brokers some of my clients have used.
Call me and I will refer you to a mortgage professional that has an excellent reputation and track record for successfully acquiring loan approval for his/her clients.
I'LL FIND THE RIGHT HOME FOR YOU !
Once you've been pre-qualified and know what price range you want to stay in, I can help you determine which properties fit your needs by using the (MLS) Multiple Listing Service, solicit fellow Realtors at Pemberton Holmes to see what listings they have and what they may have coming up! I also approach my Realtor friends at other companies to see what they may have coming up - whatever it takes to find you the home of your dreams!
I have the best possible resources and communication systems available today to help you locate the homes on the market that match your specifications. You can even search my listings here at my website.
I HELP YOU EVERY STEP - AND MORE !
I'll help you complete your financing and inspections, and close on the transaction, weed out all the homes that don't meet your specifications, every step until you put your new key into the door and walk through your living room the first time. Even beyond that - need to have your dog or cat taken care of, your child minded, whatever it is. My top priority is to make sure that your home buying experience is pleasant, cost-efficient, and successful. This will be a home you'll be happy and comfortable for a long time - until you call me again in your next move along your life plan. |
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