Harmonized Sales Tax

On July 23, 2009, Premier Gordon Campbell and Finance Minister Colin Hansen announced that, effective July 1, 2010, BC will adopt a Harmonized Sales Tax (HST), combining the seven per cent Provincial Sales Tax (PST) with the five per cent federal Goods and Services Tax (GST) for a single sales tax rate of 12 per cent.

An additional seven per cent tax will be charged on a variety of real estate related services, including commissions, appraisals and other services that are currently exempt, as well as adding thousands of dollars in additional costs to new home purchases.

Looking to offset the increase in costs, the Government of BC plans to offer a partial rebate of the provincial portion of the HST for new housing to ensure that new homes up to $400,000 will bear no more tax than under the current PST system, while homes above $400,000 will receive a flat rebate of about $20,000.

What does this mean for REALTORS®?
As proposed, the HST will increase the cost of buying or selling a home and becomes essentially an additional tax on home ownership. Under the HST, REALTOR® commissions will be subject to a 12 per cent tax, replacing the five per cent GST now charged.

New home sales over $400,000 will be dramatically impacted, as buyers will now have to pay an additional seven per cent tax (even with the $20,000 flat rebate). This will act as a disincentive to buyers of new homes in the short term.

The Vancouver Sun wrote an article also explaining what other industries will be affected on July 30, 2009.

Copyright British Columbia Real Estate Association. Reprinted with permission.

I just finished uploading this luxury condominium for sale, 101 748 Sayward Hill Terrace, Victoria, BC

Sayward Hill Development with a million dollar view! Luxurious living along with stunning panorama of Cordova Bay, Gulf and San Juan Islands and Mt Baker.  Spacious open plan with large floor to ceiling windows takes full advantage of the interplay of light and space capturing the magestic scenic vistas.  This luxurious unit features nine foot ceilings, hardwood flooring, gourmet kitchen, gas fireplace, spa-inspired bathrooms and media room.  In addition there are two large entertainment sized patios and two secure parking spaces. This building has only 16 suites. Discover Mattick's Farm, a Victoria landmark shopping experience of boutiques, galleries, farm fresh foods and award winning BC wines. The Lochside Trail offers some of the most scenic walking, running or cycling in the world.

Cordova Bay Golf Course, a public 18 hole "World Champion" destination course within minutes away or try The Ridge, a relaxing 9 hole golf course within walking distance of this Condominium.

I just finished uploading this 1 1/2 storey condominium for sale, 2 9885 Second Street, Victoria, BC

Sidney waterfront! Stunning two level condo offers first class finishing throughout. A deluxe kitchen with cherry cabinets, stainless steel appliances, Hunter Douglas blinds and sweeping ocean views...laundry, master bedroom with ensuite on the entry level and second bedroom, large bathroom and 'media room' with fireplace on the lower level. Lots of full height storage, security system, secure parking and an easy stroll to the Sidney Marina, book stores, cafes, and all levels of amenities.

Sidney is about 30 minutes from Victoria.  Head North on Blanshard Street which becomes Highway 17 and this takes you right to Sidney and if you keep driving you will end up at the BC Ferries.

I just finished uploading this House for sale in the Oak Bay area, 850 Victoria Avenue, Oak Bay Victoria, BC

Updated Oak Bay home within walking distance to the beach (McNeil Bay). This classic 1940's home almost has too many desirable features. Well designed updates that creates a truly pleasing lifestyle and atmosphere. The elegant entry hall has gorgeous hard wood floors, generous sized living room and the separate dining room are ideal for entertaining. The fabulous new kitchen showing off the shaker style cabinets opens up to a wonderful family room and leads through double french doors out to a sun drenched private deck and yard. Perfect for barbiques, hot tubs and star gazing. Gorgeous mature landscaping completes this sanctuary.

Today in Victoria's daily newspaper The Times Colonist was an article explaining the Victoria Real Estate market.  Royal LePage Coast Capital Realty's managing broker Carol Guerts was quoted throughout the article, below is an insert from the article and if you would like to read more about this article of Victoria's Real Estate just click.  Also today on the radio there were new announcements about the Oak Bay Beach Hotel and Private Residences to be built.

The number of sales that was announced for the month of June 2009 was the fifth largest month in the last 7-8 years!  The average days it takes to sell a home last year was approximalty 38 and this year is showing at 51. 

Introducing the "50/50" Mortage Product Option

If you have any questions or would like help with real estate in Victoria please call me direct at 250.744.4556 and stay tuned for more real estate updates...