The provincial government announced today a potential tax savings up to $500 for new home buyers when they purchase a newly built home, effective for agreements written today until the HST is removed on April 1, 2013.  Details are as follows:

The new BC First-Time New Home Buyers' Bonus will be a temporary one-time refundable income tax credit for first-time home buyers who purchase a newly constructed home. The credit will be calculated as five per cent of the purchase price of the home up to a maximum credit of $10,000.

The credit will be phased out at a rate of 20 per cent of net income in excess of $150,000 for single individuals and at a rate of 10 per cent of family net income in excess of $150,000 for couples. Only one credit can be claimed per home.

The credit will be available on purchases of newly constructed housing where both the HST applies and where a written agreement of purchase and sale is entered into on or after Feb. 21, 2012.

And, of course, it is also important for them to have other kids in the neighborhood that could potentially become their friends.Several academic studies have shown that “kid-friendly” neighborhood features can have a significant impact on a child’s well being, psychological growth and academic performance.

Need help selecting the ideal neighborhood? Call the Dion-Ivans Real Estate Group today!

VICTORIA – New housing transition measures give certainty to an important economic sector and help to keep taxes equitable throughout the transition as the province returns to the PST, Finance Minister Kevin Falcon announced today.

B.C. will return to the PST on April 1, 2013, meeting the Province’s commitment to return to the PST as quickly and responsibly as possible, while ensuring businesses can plan their training and systems switch-over effectively to apply the sales tax correctly.

Government is announcing new relief measures that will benefit purchasers and builders of new homes. The B.C. new housing rebate threshold will be increased to $850,000, effective April 1, 2012, meaning more than 90 per cent of newly built homes will now be eligible for a provincial HST rebate of up to $42,500. It is important to note that the HST does not apply to resale housing.

In addition, to help support workers and communities in B.C. that depend on residential recreational development, purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000 will now be eligible to claim a provincial grant of up to$42,500 effective April 1, 2012.

The housing transition rules help ensure when people buy a newly constructed home under the PST, whether built entirely under the HST, entirely under the PST, or partly under HST and partly under the PST, they will all pay a consistent and equitable amount of tax.

Specifically:

• B.C.’s portion of the HST will continue to apply before April 1, 2013. Purchasers will be eligible for the new higher B.C. HST new housing rebate, of up to $42,500, and builders will continue to claim input tax credits.
• B.C.’s portion of the HST will no longer apply to newly built homes where construction begins on or after April 1, 2013. Builders will once again pay seven per cent PST on their building materials. On average, about two per cent of the home’s final price will again be embedded PST.
• For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price. This ensures equitable treatment among purchasers and will help mitigate distortive market behaviour. Builders will receive temporary housing transition rebates to offset PST on materials to help prevent double-taxation on homebuyers.

The transition rules outlined today provide certainty for new-home construction and sales, particularly during the transition period.

For goods and services that will be subject to PST, PST will generally apply where tax becomes payable on or after April 1, 2013. Detailed general transitional rules for goods and services will be available with the full PST legislation introduced in the legislature this spring.

The provincial changes are subject to the approval of the legislature.

Information provided by the Ministry of Finance. For more information please visit www.gov.bc.ca 

Canadian housing starts began the year with a seasonally adjusted annual rate (SAAR) of 197,900 starts in January. While starts were down slightly from December's mark of 199,900, the pace of new home construction remains strong.  New home construction in BC urban centres rose 29 per cent from December 2011, registering 27,000 starts (SAAR) in January. 

Looking at major metropolitan areas, housing starts rose 8.3 per cent year-over- year in Vancouver. In a bit of a role reversal, it was single family starts that drove growth, rising 50 per cent year over year while multi-family starts rose a modest 2 per cent. Abbotsford new home construction fell 54 per cent year-over-year in January due to weakness in both single-family and multi-family starts. New home construction in Victoria rose 5 per cent year-over-year in January due to strong growth in multi-family starts. Finally, new home construction in Kelowna continued to build on momentum from late 2011 as total starts rose 48 per cent year-over-year on balanced growth between single and multi-family starts. 

Source: www.BCREA.ba.ca 

Ideally, the first property you see when shopping for a new home will be the one you fall in love with and buy. But let’s face it. You’ll probably end up seeing several homes before reaching the decision to make an offer on one.

When you’re viewing homes, you want to make sure that the experience is enjoyable (rather than stressful) and that you get all the information you need to make the right decision. 

To help you do that, here are a list of items you should consider taking with you:

• A notepad. Have something with you so you can take notes – a pad of paper, laptop computer, iPad, even a voice recorder.
• Flashlight. Just in case there is an area in a home that is not well lit, such as the furnace room.
• Maps. Map out your route in advance. This will reduce a lot of potential stress.
• Water and snacks. If you’re viewing more than two properties, take some healthy refreshments with you, rather than relying on fast food restaurants. These will help keep your energy level up. (This is especially important if you’re taking kids with you.)
• A plan. Don’t just view properties randomly. Work out an itinerary in advance. This will help you make the most of your time.

Want more tips on making your home hunting experience less stressful and more productive? Call The Dion-Ivans Real Estate Group today!!