HST in BC
- Thread starter dsenger
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It affects both (and condo fees).
HST will be charged on purchase price of new homes, although there is a rebate up to a certain dollar value which was recently bumped up.
HST will also result in higher closing costs for re-sale homes as well since there is now an additional tax on the services of lawyers, accountants, agent commissions, etc.
Utilities will also be hit with HST, so condo fees will increase as well.
HST will be charged on purchase price of new homes, although there is a rebate up to a certain dollar value which was recently bumped up.
HST will also result in higher closing costs for re-sale homes as well since there is now an additional tax on the services of lawyers, accountants, agent commissions, etc.
Utilities will also be hit with HST, so condo fees will increase as well.
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QUOTE (AndrewMacDonald @ Nov 22 2009, 07:13 PM) It affects both (and condo fees).
HST will be charged on purchase price of new homes, although there is a rebate up to a certain dollar value which was recently bumped up.
HST will also result in higher closing costs for re-sale homes as well since there is now an additional tax on the services of lawyers, accountants, agent commissions, etc.
Utilities will also be hit with HST, so condo fees will increase as well.
indeed .. thus expect an ARTIFICIAL RUN UP in prices in both BC and Ontario until May/June 2010 .. then a DROP by about 5-7% in 3Q 2010 .. both for new and used homes .. as used homes trade at a discount in parallel to new homes !!
Do not overpay in the next 6 months in ON and BC as prices may overshoot due to the new tax as people try to buy before the HST comes into effect July 1, 2010 !!! This is not a mini-boom .. just a human reaction to higher prices in July 2010 due to taxes .. thus the underlying asset without taxes (new and old homes) will likely drop in 3Q 2010 !
HST will be charged on purchase price of new homes, although there is a rebate up to a certain dollar value which was recently bumped up.
HST will also result in higher closing costs for re-sale homes as well since there is now an additional tax on the services of lawyers, accountants, agent commissions, etc.
Utilities will also be hit with HST, so condo fees will increase as well.
indeed .. thus expect an ARTIFICIAL RUN UP in prices in both BC and Ontario until May/June 2010 .. then a DROP by about 5-7% in 3Q 2010 .. both for new and used homes .. as used homes trade at a discount in parallel to new homes !!
Do not overpay in the next 6 months in ON and BC as prices may overshoot due to the new tax as people try to buy before the HST comes into effect July 1, 2010 !!! This is not a mini-boom .. just a human reaction to higher prices in July 2010 due to taxes .. thus the underlying asset without taxes (new and old homes) will likely drop in 3Q 2010 !
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QUOTE (ThomasBeyer @ Nov 22 2009, 06:29 PM) indeed .. thus expect an ARTIFICIAL RUN UP in prices in both BC and Ontario until May/June 2010 .. then a DROP by about 5-7% in 3Q 2010 .. both for new and used homes .. as used homes trade at a discount in parallel to new homes !!
Do not overpay in the next 6 months in ON and BC as prices may overshoot due to the new tax as people try to buy before the HST comes into effect July 1, 2010 !!! This is not a mini-boom .. just a human reaction to higher prices in July 2010 due to taxes .. thus the underlying asset without taxes (new and old homes) will likely drop in 3Q 2010 !
Do not overpay in the next 6 months in ON and BC as prices may overshoot due to the new tax as people try to buy before the HST comes into effect July 1, 2010 !!! This is not a mini-boom .. just a human reaction to higher prices in July 2010 due to taxes .. thus the underlying asset without taxes (new and old homes) will likely drop in 3Q 2010 !
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Here is an article from the Vancouver Observer about the what the impact may be if the HST was revoked:
The unhappy reality of revoking the HST
http://www.vancouverobserver.com/politics/...ty-revoking-hst
The unhappy reality of revoking the HST
http://www.vancouverobserver.com/politics/...ty-revoking-hst
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I am a Nova Scotian, who just happens to live in Vancouver. When HST was introduced to NS about 20 years ago, there was the same hue and cry that everyone`s life and standard of living would be negatively impacted, that people would stop buying real estate, stop going out for dinner, buying fancy cars, etc.
In a word, within 6 months Maritimers got use to HST. People buy homes. They are going out to dinner. In fact, Halifax has more restaurants now than before HST. And they are still buying expensive cars.
HST is not a new tax. It is a combination of two already existing taxes. It will be applied to relatively few products and services that the Federal Sales tax portion did not apply to previously. That is what the uproar is over... the additional tax on very few things.
As much as the NDP threatens to get rid of the HST if/when it comes to power, I doubt it will be in a position to do so. However, they are politicians. And, politicians have been known to do things that make no sense, whatsoever.
Take a deep breath. Wait a few months, and unless Vander Slam (sic) has his way, HST will be a fact of life in BC. HST is great for business. Known in other parts of the world as VAT (Value Added Tax), it is used in the UK, throughout Europe, as well as, I think, Australia.
And to add a comment on whether HST affects used housing... It has no direct effect on used housing prices. It does, however, affect service expenses such as lawyers, as was pointed out.
In a word, within 6 months Maritimers got use to HST. People buy homes. They are going out to dinner. In fact, Halifax has more restaurants now than before HST. And they are still buying expensive cars.
HST is not a new tax. It is a combination of two already existing taxes. It will be applied to relatively few products and services that the Federal Sales tax portion did not apply to previously. That is what the uproar is over... the additional tax on very few things.
As much as the NDP threatens to get rid of the HST if/when it comes to power, I doubt it will be in a position to do so. However, they are politicians. And, politicians have been known to do things that make no sense, whatsoever.
Take a deep breath. Wait a few months, and unless Vander Slam (sic) has his way, HST will be a fact of life in BC. HST is great for business. Known in other parts of the world as VAT (Value Added Tax), it is used in the UK, throughout Europe, as well as, I think, Australia.
And to add a comment on whether HST affects used housing... It has no direct effect on used housing prices. It does, however, affect service expenses such as lawyers, as was pointed out.
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QUOTE (Dan_Eisenhauer @ Jun 25 2010, 12:09 PM) ..
Take a deep breath. Wait a few months, and... HST will be a fact of life in BC. ..
indeed ..
QUOTE (Dan_Eisenhauer @ Jun 25 2010, 12:09 PM) ..HST ... It has no direct effect on used housing prices. ..
not quite .. as PST today is NOT charged on new condos/homes .. and thus all new homes will be 7% more expensive if they could be sold at that price ! .. Thus: the NET new home price will drop to allow the gross price to be flat more or less .. and as such will temporarily reduce used homes prices until end of the year !!
Take a deep breath. Wait a few months, and... HST will be a fact of life in BC. ..
indeed ..
QUOTE (Dan_Eisenhauer @ Jun 25 2010, 12:09 PM) ..HST ... It has no direct effect on used housing prices. ..
not quite .. as PST today is NOT charged on new condos/homes .. and thus all new homes will be 7% more expensive if they could be sold at that price ! .. Thus: the NET new home price will drop to allow the gross price to be flat more or less .. and as such will temporarily reduce used homes prices until end of the year !!
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Not ALL new homes, Thomas. I do not know the formula, and have been trying to find it online, without success. There is a scaled rebate.
And you are correct. There was no PST on new homes, which I forgot about. But, the question was about used homes.
But, let`s put all of this in perspective.
We now add 6% to our legal bill to purchase a property. Say your legal bill is $1,500, we add $90.00 to the cost of a $500,000 (average price) purchase. If $90.00 is going to prevent the purchase of a home, then we should not consider buying a new home.
We add 6% to our meals out. If your bill is $60.00, $3.60 additional tax is added. That should not prevent people from eating out. If it does, they can eat out 15 times, skip the 16th time to recoop the HST paid on the previous 15 meals, then go out 15 more times, etc etc.
People who are worried about HST need to get a grip.
And you are correct. There was no PST on new homes, which I forgot about. But, the question was about used homes.
But, let`s put all of this in perspective.
We now add 6% to our legal bill to purchase a property. Say your legal bill is $1,500, we add $90.00 to the cost of a $500,000 (average price) purchase. If $90.00 is going to prevent the purchase of a home, then we should not consider buying a new home.
We add 6% to our meals out. If your bill is $60.00, $3.60 additional tax is added. That should not prevent people from eating out. If it does, they can eat out 15 times, skip the 16th time to recoop the HST paid on the previous 15 meals, then go out 15 more times, etc etc.
People who are worried about HST need to get a grip.
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QUOTE (Dan_Eisenhauer @ Jun 26 2010, 01:02 PM) But, let`s put all of this in perspective.
We now add 6% to our legal bill to purchase a property. Say your legal bill is $1,500, we add $90.00 to the cost of a $500,000 (average price) purchase. If $90.00 is going to prevent the purchase of a home, then we should not consider buying a new home.
We add 6% to our meals out. If your bill is $60.00, $3.60 additional tax is added. That should not prevent people from eating out. If it does, they can eat out 15 times, skip the 16th time to recoop the HST paid on the previous 15 meals, then go out 15 more times, etc etc.
People who are worried about HST need to get a grip.
Great post, Dan - I totally agree!
Have a good one!
JohnS
We now add 6% to our legal bill to purchase a property. Say your legal bill is $1,500, we add $90.00 to the cost of a $500,000 (average price) purchase. If $90.00 is going to prevent the purchase of a home, then we should not consider buying a new home.
We add 6% to our meals out. If your bill is $60.00, $3.60 additional tax is added. That should not prevent people from eating out. If it does, they can eat out 15 times, skip the 16th time to recoop the HST paid on the previous 15 meals, then go out 15 more times, etc etc.
People who are worried about HST need to get a grip.
Great post, Dan - I totally agree!
Have a good one!
JohnS
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QUOTE (Dan_Eisenhauer @ Jun 26 2010, 10:02 AM) Not ALL new homes, Thomas. I do not know the formula, and have been trying to find it online, without success. There is a scaled rebate.
And you are correct. There was no PST on new homes, which I forgot about. But, the question was about used homes.
But, let`s put all of this in perspective.
We now add 6% to our legal bill to purchase a property. Say your legal bill is $1,500, we add $90.00 to the cost of a $500,000 (average price) purchase. If $90.00 is going to prevent the purchase of a home, then we should not consider buying a new home.
We add 6% to our meals out. If your bill is $60.00, $3.60 additional tax is added. That should not prevent people from eating out. If it does, they can eat out 15 times, skip the 16th time to recoop the HST paid on the previous 15 meals, then go out 15 more times, etc etc.
People who are worried about HST need to get a grip.
Exactly. The hype is affecting the situation more than the real economics of it. Also, legal fees in BC are already subject to PST anyways so the taxes on legal fees are NOT going up.
And you are correct. There was no PST on new homes, which I forgot about. But, the question was about used homes.
But, let`s put all of this in perspective.
We now add 6% to our legal bill to purchase a property. Say your legal bill is $1,500, we add $90.00 to the cost of a $500,000 (average price) purchase. If $90.00 is going to prevent the purchase of a home, then we should not consider buying a new home.
We add 6% to our meals out. If your bill is $60.00, $3.60 additional tax is added. That should not prevent people from eating out. If it does, they can eat out 15 times, skip the 16th time to recoop the HST paid on the previous 15 meals, then go out 15 more times, etc etc.
People who are worried about HST need to get a grip.
Exactly. The hype is affecting the situation more than the real economics of it. Also, legal fees in BC are already subject to PST anyways so the taxes on legal fees are NOT going up.
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Now let`s say you bought a house under a corporation, do you still get to claim back HST? Like any other business. And if yes what happens when you sell it?
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In Ontario there are two "New Home Rebates" available: (Not sure about BC)
The GST Rebate is still available and is 36% of the 5% GST up to a $350K Home Purchase Price.
There is a new HST Rebate available now and it is 75% of the 8% up to a $400K Home Purchase Price (up to a max rebate of $24K).
So on houses under $400K the HST adds a couple thousand to the cost of the house. Where it really makes a difference is on the homes priced well over $400K threshold.
The GST Rebate is still available and is 36% of the 5% GST up to a $350K Home Purchase Price.
There is a new HST Rebate available now and it is 75% of the 8% up to a $400K Home Purchase Price (up to a max rebate of $24K).
So on houses under $400K the HST adds a couple thousand to the cost of the house. Where it really makes a difference is on the homes priced well over $400K threshold.
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QUOTE (Dan_Eisenhauer @ Jun 26 2010, 12:02 PM) People who are worried about HST need to get a grip.
My sentiments exactly! I am getting so sick and tired with people complaining simply for the sake of complaining. Take the article in today’s Province – Couple’s honeymoon dream dies. They state in the article that “they were hit with an additional $786 in taxes on their catering bill for their nuptials.” And now they have to take their honeymoon near Parksville rather than Mexico or Cuba. First off, I can’t understand how they are paying an additional $786 in taxes unless their catering is $11,229 ($11,228 X 7% = $786.03.) And if their catering bill is $11,229 than I assume their total wedding costs are likely $25,000-$30,000 or much more. So, if their spending tens of thousands of dollars on a wedding then an additional $786 shouldn`t hamper their honeymoon plans. Plus, if a measly $786 stops them from taking an overseas honeymoon they probably should not be going anyways. What happens if something goes wrong? What happens if their stranded and need to come home? Later in the article it’s states “Pritchard and Simms also plan to dine out less, and will watch how much money they spend at Serious Coffee and Tim Hortons.” “We live right across from Tim Hortons, so we try to go every day and get a coffee or bagel for breakfast.” Maybe the problem is they should buy a tin of coffee from Superstore that will last them for months for the same price as a couple of Tim Horton’s Coffees. If the extra 1 cent ($1.75 X 7% = .12) then they shouldn’t be spending the $1.75.
As Dan says – GET A FRIGGEN GRIP!
I just wish the Liberal Government was able to spend tax dollars explaining to the Tax Payers why HST is good. Unfortunately it’s illegal...........
My sentiments exactly! I am getting so sick and tired with people complaining simply for the sake of complaining. Take the article in today’s Province – Couple’s honeymoon dream dies. They state in the article that “they were hit with an additional $786 in taxes on their catering bill for their nuptials.” And now they have to take their honeymoon near Parksville rather than Mexico or Cuba. First off, I can’t understand how they are paying an additional $786 in taxes unless their catering is $11,229 ($11,228 X 7% = $786.03.) And if their catering bill is $11,229 than I assume their total wedding costs are likely $25,000-$30,000 or much more. So, if their spending tens of thousands of dollars on a wedding then an additional $786 shouldn`t hamper their honeymoon plans. Plus, if a measly $786 stops them from taking an overseas honeymoon they probably should not be going anyways. What happens if something goes wrong? What happens if their stranded and need to come home? Later in the article it’s states “Pritchard and Simms also plan to dine out less, and will watch how much money they spend at Serious Coffee and Tim Hortons.” “We live right across from Tim Hortons, so we try to go every day and get a coffee or bagel for breakfast.” Maybe the problem is they should buy a tin of coffee from Superstore that will last them for months for the same price as a couple of Tim Horton’s Coffees. If the extra 1 cent ($1.75 X 7% = .12) then they shouldn’t be spending the $1.75.
As Dan says – GET A FRIGGEN GRIP!
I just wish the Liberal Government was able to spend tax dollars explaining to the Tax Payers why HST is good. Unfortunately it’s illegal...........
QUOTE (dsenger @ Nov 22 2009, 06:50 PM) Does anyone know if the new HST in BC affects new homes, re sale homes or both?
Thanks for your reply.
I don`t believe they are any changes to lawyer fees--at least I think that is what Mark Warkentin said--I think they already charge both PST and GST so it is a wash.
Thanks for your reply.
I don`t believe they are any changes to lawyer fees--at least I think that is what Mark Warkentin said--I think they already charge both PST and GST so it is a wash.
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QUOTE (dsenger @ Nov 22 2009, 07:50 PM) Does anyone know if the new HST in BC affects new homes, re sale homes or both?
Thanks for your reply.
The HST affects new homes over $ 525,000. Below $ 525,000 there is no HST. Over, there is also a rebate the amount of which I am not sure about. I believe it is up to $ 26,000 but am not sure at this moment.
For pre lived homes of any age for residence; condos, apartments, townhomes and detached homes, there is NO HST.
For commercial buildings, there IS HST
Thanks for your reply.
The HST affects new homes over $ 525,000. Below $ 525,000 there is no HST. Over, there is also a rebate the amount of which I am not sure about. I believe it is up to $ 26,000 but am not sure at this moment.
For pre lived homes of any age for residence; condos, apartments, townhomes and detached homes, there is NO HST.
For commercial buildings, there IS HST
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There is HST on commercial buildings. However, by filing a certain document with CRA, that HST is deferred indefinitely. You need to get more information from a real estate accountant or lawyer.
QUOTE (RockyMtnHigh @ Jun 28 2010, 07:13 AM) The HST affects new homes over $ 525,000. Below $ 525,000 there is no HST. Over, there is also a rebate the amount of which I am not sure about. I believe it is up to $ 26,000 but am not sure at this moment.
For pre lived homes of any age for residence; condos, apartments, townhomes and detached homes, there is NO HST.
For commercial buildings, there IS HST
I think the rebate is somewhere about $24000-$25000 if the house is over $525k
For pre lived homes of any age for residence; condos, apartments, townhomes and detached homes, there is NO HST.
For commercial buildings, there IS HST
I think the rebate is somewhere about $24000-$25000 if the house is over $525k
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QUOTE (ThomasBeyer @ Nov 22 2009, 08:29 PM) indeed .. thus expect an ARTIFICIAL RUN UP in prices in both BC and Ontario until May/June 2010 .. then a DROP by about 5-7% in 3Q 2010 .. both for new and used homes .. as used homes trade at a discount in parallel to new homes !!
Do not overpay in the next 6 months in ON and BC as prices may overshoot due to the new tax as people try to buy before the HST comes into effect July 1, 2010 !!! This is not a mini-boom .. just a human reaction to higher prices in July 2010 due to taxes .. thus the underlying asset without taxes (new and old homes) will likely drop in 3Q 2010 !
as expected / forecasted:
"Housing Market feels HST Impact":
http://www.financialpost.com/news/Housing+...3892/story.html
Do not overpay in the next 6 months in ON and BC as prices may overshoot due to the new tax as people try to buy before the HST comes into effect July 1, 2010 !!! This is not a mini-boom .. just a human reaction to higher prices in July 2010 due to taxes .. thus the underlying asset without taxes (new and old homes) will likely drop in 3Q 2010 !
as expected / forecasted:
"Housing Market feels HST Impact":
http://www.financialpost.com/news/Housing+...3892/story.html