13th
Jul 10
posted by Steve Roper | 1 Comment »
The Government of Canada is proposing new eligibility criteria for the Immigrant Investor Program. These proposed regulatory changes would require new investors to have a personal net worth of $1.6 million, up from $800,000, and make an investment of $800,000, up from $400,000. The changes are expected to be implemented by October 2010.
You can read more here;
http://www.bcimmigration.com/details/articles/Ministerial_Update_June2010.php
Here is a recent pdf of BC Immigration Statistics also prepared by David Ajula…
31st
May 10
posted by Steve Roper | No Comments »
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.
