The Preferred Homes Team

The information is coming out quickly on this.  Here a couple of key points to know:

1. Of course, this only applies to newly built or substantially renovated homes.
2. This only applies to offers accepted on or after February 21, 2012.  If you already have an accepted offer, you do not qualify.
3. The savings is equivalent to 5% of the home price, up to a maximum savings of $10,000.
4. If the combined annual income of the couple of single purchaser exceeds $150,000, the savings starts to get smaller.
5. The savings are not at time of purchase, but will be in the form a tax refund when you file your annual taxes.

If you have more questions, please click here to read the details straight from the government.  As well, feel free to give us a call.

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It has been a GREAT week for those looking to buy new homes.  Earlier, we learned that the HST rebate was boosted, reducing the price of new homes over $525,000.  

Now, we learn that the goverment has a great surprise for first time home buyers as well.

Effective immediately, and continuing until March 31, 2013, first time home buyers can save an additional $10,000 when they buy a newly built home.  We understand that this will be implemented through and income tax credit.  Of course, first time home buyers are also eligible to waive the property transfer tax in many cases.

It is obvious that our government understands that real estate transactions are a huge driver for our economy.  Not only does every sale generate a lot of tax revenue, but each sale also creates jobs, spurs spending on new furniture, renovations, and more. 

We'll have more details on the implementation of this new program as they become available.

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It was another positive week in the market with an increasing pace of sales for both houses and condos.  Although prices are still down, the pace of sales and the number of days that it takes to sell a home are both going in the right direction.  I tend to think that if demand stays high, we could even see some slight appreciation in prices.  But, lets not jump the gun on that one!

It is important to point out that the new HST transition rules are great news for new home buyers.  In short, any new home selling for more than $525,000 now attracts less HST and should be cheaper.  Homes priced at under $525,000 are not affected.  The tax savings are incremental, with new properties valued at $850,000 and higher seeing a tax reduction of $16,250.  Even better, these transition rules give tax certainty and tell us that new properties cost the same today as they will after the HST disappears completely.  Considering that developers have been hurting...

Today, The BC Government announced that on April 1, 2013 the HST will be eliminated and that affective very soon, on April 1, 2012, The HST payable on many new homes will be reduced.  This means savings for buyers of new homes priced over $525,000 before tax.

Currently, there is a rebate of 5% of the 12% HST up to a maximum of rebate of $26,250 which is reached at a $525,000 house price.  Starting on April 1, 2012, the maximum rebate climbs to $42,500 which means that a buyer doesn't reach the maximum rebate until the new home price is $850,000.  

To look at it another way, a house that sells for $525,000 before HST will cost the same at least until April 1, 2013.  A home that sells for $850,000 before HST, will attract $16,250 less HST starting on April 1, 2012.

Many new homes are marketed "including the HST."  Keep in mind that the prices don't automatically change on these homes.  However, I do expect that most developers will adjust...

The units with the best views are already being picked off by eager buyers.  If you want to find out what all the fuss is about, come and visit us at Rainbow Hill this weekend from 1-4pm!

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We continue to have great success at Homes at Hazelwood with a couple more accepted offers this week.  In fact, we are starting to run out of locations for some of our most popular plans.  If you want to find out why Homes at Hazelwood is one of the most popular developments on the market with three bedroom homes starting at only $359,900 please give us a call today!

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