How New Hst Housing Rebate Will Benefit You For Buying Homes In Vancouver Bc

As you've already that July 1st is the day when the BC provincial government and

federal government will combine the 7% provincial trades tax (PST) and the 5% federal Goods and Services Tax (GST) into a 12% Harmonized Sales Tax (HST).

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

New housing allowance in BC after July 1 New rules about HST housing allowance: Buyers of new units will be suitable for a allowance of 71.43% of the provincial ration (7% of the HSTs 12%) of the HST paid on the new home up to a maximum allowance of $26,250. Homes prices at more than $525,000 will be suitable for a flat allowance of $26,250.

The rule is rather straight forward. But that new allowance of the provincial ration will be for primary dwelling obtain only. Or if you are a residential property land developer or manufacturer, you may qualify for up to $8,663 allowance.

When each person is speaking about the New allowance, citizens almost disregard the Old one. That is the Federal GST new housing allowance, which is 36% of the tax paid on the original $350,000 of the home price. The GST allowance is phased out for units cost between $350,000 and $450,000.

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

That's a big diversity! Especially for my likely buyers 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 detached house in those regions.

Another interesting issue about this new housing allowance is: There is an greater provincial New Rental Housing allowance. If you build or extensively renovate a residential property to rent to tenants, you will be suitable for a allowance up to $26,250 on units cost up to $525,000. There is a flat allowance of $26,250 for units cost above $525,000.

So the interesting issue is: you will not be suitable for any housing allowance if you buy a new property which is not your major dwelling and you dont rent it. But, if you buy a new rental apartment building and rent all of the units, you will be suitable for a New Rental Housing Rebate for each unit up to a maximum allowance of $26,250 per unit.

It's obvious that, there are continuously some circumstances employ that you want to double confirm with BC government about new HST rules. And in fact the new HST rule won't just impact on new home price. Because the whole housing market price, including those earlier built units, will be changed to a upper level when the new HST rules employ.

by: Jessica Scharff

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