April Fools Day 2013 PST BC Returns

Posted on http://www.condoscore.ca/2013/01/07/april-fools-day-2013-pst-bc-returns/ by Alex Lam

As we all know we have long been awaiting for the HST to be removed after a long awaited battle with our former premier.  Don’t be a fool and get to know your exemptions.

PST will be 7 percent and GST will be at 5%

Certain goods and services are exempt from PST

Similar to the Social Service Tax Act, the Provincial Sales Tax Act does not impose tax on things such as:

  • Real property (residential housing or commercial real estate);
  • Admissions and memberships;
  • Professional services (other than legal services);
  • Transportation fares (e.g., bus, train, ferry, airline)

In addition, all permanent exemptions from the PST will be re-implemented with the new PST, including:

  • food for human consumption (e.g., basic groceries and prepared food such as restaurant meals);
  • books, newspapers and magazines;
  • children’s clothing;
  • all permanent exemptions for business.

Unlike the Social Service Tax Act, the Provincial Sales Tax Act legislation only includes exemptions fundamental to the scheme of the act. The remainder of the exemptions will be provided by regulation. Note: in cases where the legislation does not impose tax, a specific exemption is not required to be provided. For example, as the PST is not imposed on purchases of real property (i.e., housing) or on admissions or memberships, no specific exemptions are required.

For those looking to sell your bc condo or house, the real estate commissions will only charge a 5% GST instead of a combined 12% with HST.  Real estate services follows the category of professional services under the rules.

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Property Transfer Tax Update BC Real Estate

Posted on http://www.condoscore.ca/2013/01/03/property-transfer-tax-update-bc-real-estate/ by Alex Lam

When you decide to buy a home, your REALTOR® will talk to you about “closing costs,” the extra charges and taxes you’ll pay in addition to the purchase price of your home.

The heftiest of these is the Property Transfer Tax, or PTT.  The good news is most first-time buyers are exempt from the tax. The PTT is paid to the BC government and is calculated at 1% of the first $200,000 of the purchase price, plus 2% of any remainder. For example, on a $400,000 home, the PTT totals $4,000. You will need to complete a PTT Return, with the assistance of your lawyer or notary public. The tax is payable on the date the property is transferred at the Land Title Office.

The First-Time Home buyers’ Exemption

First-time buyers are exempt from the PTT, but only if all the following conditions apply:

  • The home was bought for less than $425,000. There is a partial exemption for homes priced up to $450,000.
  • The amount borrowed to finance the home must equal 70% or more of the purchase price, and cannot include amounts borrowed from relatives or friends.
  • Each buyer must be a Canadian citizen or permanent resident and must have resided in BC for 12 months before the purchase.
  • Each buyer must not have owned an interest in any principal residence at any time in the past.
  • If the property bought is vacant land, construction of a residence must be completed within the year following registration of the purchase.
  • The mortgage must have a term of at least one year following the completion date of the purchase;
  • The purchased property must be classified as residential by the British Columbia Assessment Authority and the land portion must not exceed 0.5 hectares (1.24 acres) in area.
  • During the first year of ownership, the buyer cannot reduce his/her mortgage balance by any more than $11,000 ($9,000 if property is outside the CRD or the lower mainland).
  • The buyers must occupy the property as a principal residence within 92 days of the completion date, and for a minimum of one year afterward.

The BC Real Estate Association, the Real Estate Board of Greater Vancouver and other industry groups have advocated for the government to eliminate the PTT. A recent study determined that eliminating the PTT would, over a ten year period, allow 9,623 more households to buy a resale home and 4,403 more households to purchase a new home.

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A $10,000 New Condo tax credit for First time buyers of BC Real Estate

Posted on http://www.condoscore.ca/2012/02/22/a-10000-new-condo-tax-credit-for-first-time-buyers-of-bc-real-estate/ by Alex Lam

Feb 22,2012

In its 2012 Budget announced yesterday, the Provincial Government announced a temporary one-time refundable personal income tax credit worth up to $10,000.

ELIGIBLE FIRST-TIME NEW HOME BUYER

You will qualify as a first-time new home buyer if:

You purchase or build an eligible new home located in B.C.;

You, or for couples, you and your spouse or common law partner, have never previously owned a primary residence;

You file a 2011 B.C. resident personal income tax return, or if you move to B.C. after December 31, 2011, you file a 2012 B.C. resident personal income tax return (you will not be eligible for the bonus if you move to B.C. after December 31, 2012);

You are eligible for the B.C. HST New Housing Rebate; and

You intend to live in the home as your primary residence.

A written agreement of purchase and sale is entered into on or after February 21, 2012;

HST is payable on the home (e.g., HST will generally be payable if ownership or possession of the home transfers before April 1, 2013

Amount of the Bonus

MAXIMUM AMOUNT

The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum of $10,000.

PHASE-OUT FOR HIGHER INCOME EARNERS

The bonus will be reduced based on an individual’s/couple’s net income (line 236 of your income tax return) using the following formula:

For single individuals, the bonus is reduced by 20 cents for every dollar in net income over $150,000 (bonus is reduced to zero at $200,000 net income).

For couples, the bonus is reduced by 10 cents for every dollar in family net income over $150,000 (bonus is reduced to zero at $250,000 family net income).

THE B.C. FIRST-TIME NEW HOME BUYERS’ BONUS

Additional Information

APPLICATION PROCESS

Individuals must apply for the bonus through the B.C. government. Individuals can apply once application forms have been posted on the B.C. Ministry of Finance website later this year. Applicants will be required to submit documentation demonstrating eligibility for the bonus.

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New BC HST Transitional Rules and New Burnaby Condo Prices

Posted on http://www.condoscore.ca/2012/02/19/new-bc-hst-transitional-rules-and-new-burnaby-condo-prices/ by Alex Lam

Feb 19,2012

Just announced by the Real Estate Board of Greater the new HST Transitional rules set by the federal and provincial government.

When the HST was first introduced most people felt that the Tax threshold of $525,000 with a maximum New Home owners Rebate of $26,250.00 was just wasn’t enough. Most New Burnaby Condo offered for sale at the presentation centres such as intracorp, have 2 bedroom units within the 600k-900k range.

Part of the new changes included increasing the maximum New Home Owners rebate up to $850,000, the real estate board of vancouver says that would cover about 90 percent of the available inventory of newly priced condos offered at presentation centres such as intracorp.

Another better change was instead of paying the 7 percent of the PST portion of the HST, New Condo Purchasers will be paying a transitional portion of just 2 percent.

If you notice with new transitional rules in place you will save more money now on the final purchase price as compared with before. On a 300k condo purchase you would be saving an additional $15,000 and with a $850,000 you would be saving about $58,750 more. Thats a true savings of about 5%.

 

If you have any questions please post below.

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Burnaby Real Estate Stats for May

Posted on http://www.condoscore.ca/2011/06/17/burnaby-real-estate-stats-for-may/ by Alex Lam

Burnaby pretty good real estate sales numbers in May. The Real Estate Board of Greater Vancouver (REBGV) reported in it’s monthly press release that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,377 in May 2011. This was a 7% increase compared to the 3,156 sales in May 2010 and a 4.7% increase compared to the 3,225 sales in April 2011.

According to the REBGV’s MLS® Sales Facts, Burnaby had 164 detached property sales, 84 attached property sales, and 197 condo or apartment sales in May. The median selling price for each property type was $910,000, $497,500, and $348,000 respectively. Compared to May 2010, detached property prices were up a staggering $100,000. Attached properties were up $20,000, and condos or apartment prices were pretty stagnant.

In regards to Burnaby real estate listings in May, there were 221 detached properties listed, 151 attached properties, and 334 condos or apartments listed. The percentage of sales to listings was detached properties 74%, attached properties 56%, and condos or apartments 59%.

You can find the full real estate stats package for May 2011 on the Real Estate Board of Greater Vancouver website.

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The Most Expensive Condo in Canada is not in Vancouver

Posted on http://www.condoscore.ca/2011/06/03/the-most-expensive-condo-in-canada-is-not-in-vancouver/ by Alex Lam
most expensive condo in Canada - not in Vancouver

Image: http://www.yorkvilleresidences.com/

After all the media hype about real estate prices in Vancouver lately, news reports are buzzing with news of the most expensive condo in Canada, and it is not in Vancouver. A penthouse suite in Toronto has just set the record for the most expensive condo in Canada, selling for a whopping $28 million. Similar to all the news lately about wealthy foreign investors coming to Vancouver to snap up the best property, it wasn’t a Canadian who purchased the Condo, it was an international buyer that made the record-breaking buy. He actually got a steal as this condo was on the market (off the plans) for $30 million back in 2008!

So what does $28 million buy you? The luxury top-floor condo (on the 55th floor) will be more than 9,000 square feet with 12-foot ceilings and have a staff residence (located in a connected building next door). This exclusive condo, in what’s dubbed Yorkville Residences, will have panoramic views of Toronto’s skyline, a floor-to-ceiling glass galleria, a 2,500-square-foot master suite, stone fireplace, theatre, wine cellar for 800 bottles and TVs that hide behind vanity mirrors.Building architecture was designed by world-famous architect Claude Cormier. Amenities include an indoor pool, spa services, fitness centre, concierge staff, and bar/lounge.

This multi-million dollar building is now under construction as part of the new Four Seasons hotel and Residences. The first 20 floors will be for the Four Seasons hotel and the condos will be above. The Four Season Residences are almost sold out with 85 per cent already sold. The first occupants to move in to these exclusive condos next summer. For those looking to buy a Yorkville Residence condo , they start at $1.9 million for a 1,000-square-foot condo.
See the full presentation website at YorkVille Residences.

Back to Greater Vancouver, you can buy a Burnaby condo for a lot less than $28 million! In fact you can probably buy about 24 Burnaby condos for that price (although smaller)! Just do a search using my property search page and see what condos for sale in Burnaby or the Greater Vancouver area. $1,500,800 is peanuts in comparison, and that will buy you a 3 bedroom, 3 bathroom condo in the Jewel II building at Metrotown. This building is expected to be complete by June 2012 an is 1,470 sq. ft. You will have lots left out of your $28 million dollar allowance to buy Ferraris, private jets, race horses and anything else you might need. Contact us at Condo Score for more information on any condos you are interested in.

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Greater Vancouver Condo Survey

Posted on http://www.condoscore.ca/2011/05/30/greater-vancouver-condo-survey/ by Alex Lam

A recent press release by the TD Canada Trust, based on its annual TD Canada Trust Condo Poll found that most Vancouver residents who recently bought or intended to buy a condo said that if they had more money, they would prefer to buy a house instead. The affordability of new condos in Vancouver is obviously a big factor in people’s decision to buy a home. The poll also found that condos seem to be viewed as a stepping stone to owning a house, with many people planning to move on in the not-too-distant future.

According to the TD press release, half of Vancouver respondents expect to live in their condo for three years or less or four to six years. The number planning on staying in condos is highest amongst respondents under 35; this is presumably because people that age may plan to start families, and when kids come along, that condo can start to feel a little small.

Apart from people trying to get on the property market, condos are also popular with people who want to downsize–a good portion of the people polled aged over 50 made up the respondents to the poll. Barry Rathburn, Manager, Residential Mortgages, TD Canada Trust was quoted in the press release saying “Moving to a smaller, less expensive home can free up money to allow pre-retirees to make some upgrades and enjoy a bit more luxury in their space”. According to the poll, 31% of people aged over 50 don’t plan on moving again.

So when it comes to factors that influence people buying new condos in Burnaby, New West or anywhere in the Greater Vancouver area, what do they look for? According to the poll, 98% of Vancouver residents polled named good building security as the most important feature to look for in a condominium. In regards to affordability, low condo or strata fees was the second most popular answer at 96%. A large number of Vancouver respondents (84%) said they were unwilling to pay more than $400 in condo or strata fees monthly. Other factors that polled highly were , available parking, attractive interior design features and an energy-efficient building.

Despite the press release being titled “Vancouverites like affordability of condos but hope to one day own a house” condos accounted for most of the sales and listings activity in the Greater Vancouver area in April, with 3249 condos or apartments being listed, compared to 3152 detached properties, and 1230 attached properties listed. Sales for condos or apartments were 1526, above 1366 for detached and 616 for attached properties (according to the April 2011 Listing & Sales Activity Summary released by the Real Estate Board of Greater Vancouver).

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Burnaby Home Owners Incentives

Posted on http://www.condoscore.ca/2011/05/20/burnaby-home-owners-incentives/ by Alex Lam

The City of Burnaby is leading by example when it comes to the environment. If you own real estate in Burnaby you may not be aware of some environmental incentives that are available. As well as providing tips to home owners on how they can save money and help the environment, the City of Burnaby also shares how it is helping the environment and saving the city money by practicing what it preaches. For the past number of years, the City of Burnaby has been installing a $5.6 million building retrofit for the top 49 energy-consuming buildings and facilities in Burnaby. The project will reduce city facility energy consumption by 14%! Beside the projected guaranteed saving of $400,000 annually when it is complete, other benefits include the reduction in water consumption, operational cost and green-house gases, and the improvements in living comfort.

The City of Burnaby has a section on its website which it gives useful energy saving tips to home owners, as well as information on grants and environmental incentives. The City of Burnaby has been selected to pilot the Energy Savings Plan (ESP), a $2.1 million incentive program offered by the Province of B.C. through a website called Save Energy Now. The goal of the Energy Savings Plan (ESP) is to consolidate energy efficiency information to help residents, building owners, developers, property managers, and municipalities access information on energy efficiency in buildings in B.C. The ESP program strives to help people increase the comfort of their homes, save money on their energy bills and give back to the environment.

The Province of British Columbia also has several incentives available to help home owners and property buyers help the environment and save money. The BC Residential Energy Credit is a provincially administered energy allowance of the B.C. component of the harmonized sales tax (HST) on residential energy, including electricity, natural gas, heating fuel, heat, steam, kerosene, propane, firewood and pellets purchased for residential use. Check out the BC Government website for more info.

The City of Burnaby website also features lots of tips for property owners on how they can save money by being conscious of their power usage. These range from electricity usage, to water usage, to home heating tips. Here are just a few of them:

Electricity saving tips:
Install Compact Fluorescent Light bulbs (CFLs) in hard to reach places or places where lights are left on for long periods of time (2 – 3 hours) to benefit from their long life and to maximize savings. CFLs use up to 80% less energy than standard incandescent light bulbs and last up to 8 times longer.
Use energy-efficient appliances such as those bearing the ENERGY STAR label can help cut down on energy costs. An ENERGY STAR labelled clothes washer uses 35 to 50% less water than standard models. This cuts overall energy use by up to 50% by having to heat less water.
Turn off your computer/monitor or electronics when not in use. A computer and monitor operating 24 hours a day use more energy than a refrigerator. The monitor itself uses approximately 75 to 80% of the computer’s energy. If the computer needs to be left running when it’s not being used, be sure to turn off the monitor.
Install photocells for outdoor lighting. These automatically turn outdoor lights off during daylight hours.

Water saving tips:
Install faucet aerators; these can reduce the rate of flow through a faucet by up to 40%, saving both water and energy.
Install water-saving showerheads; these can reduce a home’s hot water use by up to 15%.
Take short showers rather than baths. A five-minute shower uses approximately half as much water as a bath.
Fix leaky taps or faucets. A faucet that drips one drop per second can waste 8,700 litres of water per year, as well as the electricity needed to heat and pump it.

Home heating tips:
Install programmable thermostats: Home heating is the largest energy user, accounting for nearly half of energy costs. By automatically raising and lowering temperatures to preset levels, programmable thermostats offer convenience, comfort and energy savings.
Wrap older electric hot water tanks with an insulating blanket. This can save up to 9% on home water heating costs.

There are also several rebate programs offered by provincial organizations. BC Hydro offers several rebates and buy-back programs for appliances to help the environment. Find out more information on this at the BC Hydro website section on rebates for home owners. Whether you own a seven bedroom detached mansion, or a small condo in Burnaby, there are lots of ways you can save money through these incentives, and help the environment at the same time.

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April 2011 Burnaby Real Estate Stats

Posted on http://www.condoscore.ca/2011/05/05/april-2011-burnaby-real-estate-stats/ by Alex Lam

“Greater  Vancouver saw a  typical,  solid  month  of  residential  home  sales  on  the  Multiple  Listing  Service®  (MLS®)  in  April” – that’s a quote from the press release just issued by the Real Estate Board of Greater Vancouver (REBGV). REBGV president, Rosario Setticasi, said “it continues to be a seller’s market in Greater Vancouver”. Going through the stats that accompany the press release, we can see the Burnaby real estate saw positive numbers across the board. You can read the full text of the REBGV April stats and press release here.

April Sales facts for Burnaby:
 Detached: 150
Attached: 98
Condos or Apartments: 155

April MLS® Listings facts for Burnaby:

Number of Listings:
Detached: 193
Attached: 136
Condos or Apartments: 283

Percentage of Sales to Listings:
Detached: 78%
Attached: 72%
Condos or Apartments: 55%

Burnaby real estate listing stats are very strong in comparison to other areas covered by the Real Estate Board of Greater Vancouver. Only Richmond performed better for the amount of new and existing listings on the market in April. This goes to show that there is plenty of choice for home buyers in Burnaby, for every type of property. We have covered news of new and planned real estate development projects on this website, and we will continue to do so in the months ahead.

Burnaby Real Estate MLSLink® Housing Price Index (HPI):
 The Benchmark price for all property prices in Burnaby increased through April.

Detached: $903,022 (a 1.9% increase)
Attached: $505,015 (a 1.4% increase)
Condos or Apartments: $370,314 (a 1.2% increase)

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in the Greater Vancouver area over the last year has increased .5% to $622,991 in April 2011 from $593,419 the previous April. As you can see, the benchmark price for Burnaby properties is higher than the average, and in most cases well above the average price for real estate in other areas. The benchmark price is the estimated sale price of a benchmark property. Benchmarks represent a typical property within each market.

Summary: With a slowdown in real estate sales and listings in some areas of Greater Vancouver, Burnaby real estate continues to impress across all property types. Condos in Burnaby are the highest performing property types over the other types, and there is still great choice and value here. As each month passes, Burnaby is growing stronger and becoming the jewel in the Greater Vancouver real estate crown.

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Getting the Best Service

Posted on http://www.condoscore.ca/2011/05/01/getting-the-best-service/ by Alex Lam

If you are planning to purchase a home, you will be faced with many decisions. What comes first buying the next home or selling your present home? What is your price range? What will be the location, size and style of your next home?

Before getting the answers to these questions there is one major decision to be made: which Realtor shall you choose to help you get through the maze of forms and give you the direction needed to successfully complete your real estate transactions?

Buying a home is too important to leave up to a committee. Some buyers like to leave their name with three or four salespeople. Although it may seem to be to the buyer’s advantage to have a number of people to work with, it is usually a very ineffective approach. The basic assumption is that a committee of agents can produce more results than working exclusively with one realtor. Like most committee assignments–everybody’s responsibility is nobody’s responsibility.

ONE REALTOR = COMMITMENT

You need the total commitment of one Realtor whom you feel comfortable with and who will get to know and understand you and have compassion and empathy for your particular situation. Buying and selling a home is a journey that must be carefully plotted and mapped from the start to completion. Tell this Realtor that you will work with them exclusively as long as you see the effort and work needed to get the job completed. In fact if you are a Buyer you should sign a Buyers Agency form with this agent to show your commitment, as well the agent should put in an escape clause for you the buyer if they do not perform or work actively for you. In this way you will have a dedicated Realtor who will make it his personal responsibility to handle all the details to get you to a successful completion of this real estate journey.

A REALTOR NEEDS CANDID FEEDBACK

A good agent will listen to your needs and search through properties that are available both their own office and the Multiple Listing Service, then sort out the inappropriate ones. They will likely show you a number of homes and get your feedback and then continue the process until you have found the right home. Be very candid with your feedback, point out your likes and dislikes of the properties. Your Realtor should have a copy of each of the listings you will be viewing with a space on each of the pages for your written notes. You will not remember the likes and dislikes you have of each home after you have finished your entire showing tour. Make your notes immediately after viewing each home. Also remember it is in your best interest to view only a maximum of 4 to 5 homes on any one showing tour. It is easy to become confused when viewing too many homes at one time.

A Realtor is paid on a straight commission basis. They do not receive a salary or have an expense account. They are paid only after they have sold something and it successfully closes. This is why working with more than one Realtor is not a good idea. None of the Realtors will know if it will be to their financial benefit to spend any of their time or effort trying to find you a property, when you could possibly buy through another Realtor. Believe it or not, you will be best served by dealing with one committed Realtor as opposed to shopping the field with a variety of Realtors and Brokerages. By giving your commitment to one Realtor, the Realtor will work with the enthusiasm and diligent efforts required to successfully complete your transaction.

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