Vancouver Condo Real Estate Video Blog #370 - July 27, 2009
The New HST and What a 12% Tax Means to Vancouver Real Estate
Ian Watt video blogs about the 12% HST tax that will come in to effect in July 1, 2010 how it may effect Vancouver Real Estate. If you want to voice your opinion or if you don't care for Ian's comments please email your feedback to ianwatt@ianwatt.ca and visit http://www.ianwatt.ca/RealEstateVideos for all the Ian Watt Real Estate Video Blogs.
Ian Watt : Starting July 1st 200, we will, wi won't have our GST anymore. But what we'll have id the HST which is going to be a 12% in the province of British Columbia. That's gonna apply to, well realtors' commission for one thing. But its also going to apply to new properties. Anything purchased from the developer brand new. Instead of paying the 5% GST from before, we're gonna have to pay 12%.It'll be very interesting because I think, it will slow down some brand new condom, condominiums and home purchases. However, I think, what its going to do is instigate the resale market and its gonna stimulate it. Its gonna instigate some sales and I think, if someone is going to buy $750,000 home, there's gonna be a $90,000 HST tax on that. $90,000. Of course, there are some exceptions for lower amount. but for $750,000, I'd rather buy a huge property. A 2 or 3 year old property and put $90,000 into A. my pocket or B. into renovation. Only time will tell if this is a good thing for our market but I think, its gonna stimulate the resale market and I think, the small developers, its just another nail in their coffins, because their profit margins aren't that high. The bigger developers would probably have the chance to, you know, make up this costs and past on the savings to other purchasers but the small developers, they don't have this ability. So I think its another nail in their coffins. But only time will tell. If you wanna know more what you should you do, just contact an accountant or the government. But if you'd like to discuss what you think is gonna happen, My name's Ian Watt. You can always email me at ianwatt@ianwatt.ca . Thank you very much and have a great day!