Angel Wang & Helen Pan Team|Vancouver Real Estate Agents » BC

New Personal Tax Credit Up to $10000 for First-Time Home Buyers in BC

admin — Mon, 12 Mar 2012 21:15:28 +0000

THE B.C. FIRST-TIME NEW HOME BUYERS’ BONUS

Subject to approval by the legislature, the B.C. government intends to implement a temporary BC First-Time New Home Buyers’ Bonus. Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable personal income tax credit worth up to $10,000.

Requirements to Qualify for the Bonus

ELIGIBLE FIRST-TIME NEW HOME BUYER

You will qualify as a first-time new home buyer if:

-You purchase or build an eligible new home located in B.C.;

-You, or for couples, you and your spouse or common law partner, have never previously owned a primary residence;

-You file a 2011 B.C. resident personal income tax return, or if you move to B.C. after December 31, 2011, you file a 2012 B.C. resident personal income tax return (you will not be eligible for the bonus if you move to B.C. after December 31, 2012);

-You are eligible for the B.C. HST New Housing Rebate; and

-You intend to live in the home as your primary residence.

ELIGIBLE NEW HOME

An eligible new home includes new homes (i.e., newly constructed and substantially renovated homes) that are purchased from a builder and that are owner-built. The bonus will be available in respect of new homes purchased from a builder where:

-A written agreement of purchase and sale is entered into on or after February 21, 2012;

-HST is payable on the home (e.g., HST will generally be payable if ownership or possession of the home transfers before April 1, 2013 – see further details below); and

-No one else has claimed a bonus in respect of the home.

The bonus will be available in respect of owner-built homes where:

-A written agreement of purchase and sale in respect of the land and building is entered into on or after February 21, 2012;

-Construction of the home is complete, or the home is occupied, before April 1, 2013; and

-No one else has claimed a bonus in respect of the home.

A substantially renovated home is one where all or substantially all of the interior of a building has been removed or replaced. Generally, 90% or more of the interior of the house must be renovated to qualify as a substantially renovated home (90% test).

Amount of the Bonus

MAXIMUM AMOUNT

The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum of $10,000.

PHASE-OUT FOR HIGHER INCOME EARNERS

The bonus will be reduced based on an individual’s/couple’s net income (line 236 of your income tax return) using the following formula:

-For single individuals, the bonus is reduced by 20 cents for every dollar in net income over $150,000 (bonus is reduced to zero at $200,000 net income).

-For couples, the bonus is reduced by 10 cents for every dollar in family net income over $150,000 (bonus is reduced to zero at $250,000 family net income).

THE B.C. FIRST-TIME NEW HOME BUYERS’ BONUS

Additional Information

APPLICATION PROCESS

Individuals must apply for the bonus through the B.C. government. Individuals can apply once application forms have been posted on the B.C. Ministry of Finance website later this year. Applicants will be required to submit documentation demonstrating eligibility for the bonus.

ELIGIBLE NEW HOME

The bonus is available in respect of new homes (i.e., newly constructed and substantially renovated homes) where HST is payable. HST will generally be payable on homes purchased from a builder where ownership or possession transfer before April 1, 2013. Potential buyers should consult with the builder to determine if the home will be subject to the HST.

For owner-built homes, the bonus will be based on land and construction costs subject to the HST. Eligible new homes will include:

-Detached Houses, semi-detached houses, duplexes and townhouses,

-Residential condominium units,

-Mobile homes and floating homes, and

-Residential units in a cooperative housing corporation.

Contact your Vancouver west real estate agent for details.

Original contents from Angel Wang & Helen Pan Team|Vancouver Real Estate Agents - Top 25 Real Estate Agents in Vancouver West,Downtown Vancouver and West Vancouver. Buy & Sell residential homes, property management, pre-sale and more.

Vancouver BC Home Buyers In The Driver’s Seat

admin — Thu, 12 Aug 2010 22:30:44 +0000

“A relatively large number of homes for sale have created the most favorable supply conditions for home buyers in more than a year,” said Cameron Muir, BCREA Chief Economist. MLS® active residential listings were 21 per cent higher in July than at the start of the year on a seasonally adjusted basis.

However, with newly listed MLS® residential units now declining, tighter market conditions may emerge this fall.

Detailed data and graphs are in this full report.

If you are interested in investing or buying real estate properties in Vancouver area, please contact Angel immediately for best pricing and listing.

What You Should Know About HST Housing Rebate In BC

admin — Wed, 10 Mar 2010 21:27:41 +0000

As you’ve already known that July 1st is the day when the BC provincial government and federal government will combine the 7% provincial sales tax (PST) and the 5% federal Goods and Services Tax (GST) into a 12% Harmonized Sales Tax (HST).

People here in BC had talked or complained about this new tax a lot since the day it’s announced back in Summer 2009. Now is the time to start preparing for this change, no matter what. As a rule of thumb, the GST rules that now apply to residential property will also apply under the HST.

New rules about HST housing rebate:

Buyers of new homes will be eligible for a rebate of 71.43% of the provincial portion (7% of the HST’s 12%) of the HST paid on the new home up to a maximum rebate of $26,250. Homes prices at more than $525,000 will be eligible for a flat rebate of $26,250.

The rule is pretty straight forward. But that new rebate of the provincial portion will be for primary residence purchase only. Or if you are a residential property developer or builder, you may qualify for up to $8,663 rebate.

When everybody is talking about the New rebate, people almost forget the Old one. That is the Federal GST new housing rebate, which is 36% of the tax paid on the first $350,000 of the home price. The GST rebate is phased out for homes priced between $350,000 and $450,000.

Here is an example of you buying a new home valued at $1,000,000. If you purchase it now you will get no tax rebate from either BC government or Federal government. And you will pay 50,000 GST. If you purchase it on or after July 1, you will be qualified for $26,250 new housing rebate. But you will pay $120,000 HST.

That’s a big difference! Especially for my potential clients who will most likely invest in properties in Vancouver west side, West Vancouver. Because the housing price is rarely go below $1,000,000 when you invest in single house in those areas.

Another interesting thing about this new housing rebate is…

There is an enhanced provincial New Rental Housing rebate. If you construct or substantially renovate a residential property to rent to tenants, you will be eligible for a rebate up to $26,250 on units priced up to $525,000. There is a flat rebate of $26,250 for units priced above $525,000.

So the interesting thing is: you will not be eligible for any housing rebate if you buy a new property which is not your principal residence and you don’t rent it.

But, if you buy a new rental apartment building and rent all of the units, you will be eligible for a New Rental Housing Rebate for each unit up to a maximum rebate of $26,250 per unit.

Of course, there are always some conditions apply that you want to double check with BC government about new HST rules.

And actually the new HST rule won’t just impact on new home price. Because the overall housing market value, including those previously built homes, will be adjusted to a higher level when the new HST rules apply.

House Construction Up 5.9 per cent in December

admin — Mon, 11 Jan 2010 19:34:36 +0000

According to the latest real estate market news released by Ottawa: House construction rose more than expected in December as Canada’s real estate market continued to show signs of recovery.

Canada Mortgage and Housing Corp. said Monday the number of seasonally adjusted housing starts were up 5.9 per cent from November, to 174,500 units. Most economists had expected an increase of between 160,000 and 165,000 units in December, following an upwardly revised 164,800 starts the previous month.

According to CMHC data, urban starts were up 6.6 per cent to 157,100 units in December, CMHC said in its report. Multiple-unit starts totalled 77,700 during the month, up from 72,800 units in November, while single-unit starts totalled 79,400, up 6.4 per cent from the previous month.

Urban construction was up 17.8 per cent in Quebec, 15 per cent in Atlantic Canada, 8.7 per cent in British Columbia and 2.9 per cent in Ontario, the report said. In the Prairies, urban starts declined 3.8 per cent.

Rural starts were unchanged at 17,400 units.

The Bank of Canada may shed further light on whether that strength has pushed Canada into a housing bubble when one of the governor’s advisers talks about the real estate sector in a speech Monday afternoon in Edmonton.

Meanwhile, Statistics Canada said Monday the value of building permits fell in November by 4.6 per cent from the previous month to $5.9 billion. Still, that was 23.1 per cent higher than November 2008 and 62.8 per cent higher than February 2009. The decline was due to a drop in the non-residential market, which offset increases in the residential real estate market.

HST’s Impact On BC House Price Explanation

admin — Mon, 16 Nov 2009 02:01:20 +0000

From July 1st, 2010 HST (Harmonized Sales Tax，12%) will be officially implemented in BC. The biggest and direct impact on the house price in Vancouver BC is that it is definitely going to increase your investment cost of purchasing new home (because before only 5% GST will applied on sales of brand new property). Other than that, it will also cost you more on purchasing all other type of real estates. Angel Wang explained the reasons for that impact on Vancouver real estate market in this video.

Why BC Luxury Real Estate Appeals To Investors (Part One)

admin — Sun, 18 Oct 2009 08:18:20 +0000

The luxury real estate market in British Columbia is characterized by a relatively small market share in total residential sales. However, it boasts some of the most expensive properties in Canada, whose value is derived from the exposure to some of the most beautiful natural landmarks in Canada, popular recreational localities, and particular lifestyles. These properties have weathered the economic downturn well and will remain attractive because of their positioning in some of the most beautiful localities in Canada and the world.

Four areas of British Columbia, namely the ocean-facing Greater Vancouver, White Rock-South Surrey, Victoria, and the inland-located Kelowna, represent the major locales of luxury real estate in the province. These areas boast some of the priciest properties in Canada, with the minimum upper-end price thresholds ranging from $1 million in Victoria and Kelowna to $2 million in Greater Vancouver. Luxury properties in White Rock – South Surrey are those priced over $1.2 million.

Why BC Luxury Real Estate Appeals To Investors (Part Two)