The HST has been looming large in the minds of prospective homebuyers. A recent IPSOS Reid survey indicated 40 per cent of B.C. Home Buyers believe the HST will impact their home buying plans. The question is, how big of an impact will it have?
The jury is still out on exactly how the HST will affect the overall housing market. However under the current proposal a homebuyer purchasing a used or resale home will see only a marginal increase in their actual costs.
According to Tony Spagunolo, “The average buyer purchasing a used home will see an increase of maybe $100 if the HST is implemented in the current form.” Spagunolo owns, The Spagunolo Group of Real Estate Law firms, and specializes in Real Estate conveyance.
When you break down the numbers it becomes apparent Tony is right.
Buyers only pay GST on new real estate. Therefore a resale property should not be subject to HST. Legal fees already include GST and PST therefore will have no change.
The only additional cost will be on home appraisals and inspections. Home appraisers and inspectors currently only charge GST. In the Okangan an appraisal can cost about $300 while an inspection is around $175. The total GST on both is currently $23.75. Once the new rules take effect July 1st, 2010 the total tax will increase to $57.00 which is an increase of only $33.25.
Who will the HST hurt the most?
Sellers will actually pay quite a bit more HST than buyers. Sellers pay Real Estate commissions which are subject to GST. Considering the average $400,000 sale generates a commission of around $16,000 the HST will add an additional $1,120 in tax. Not a small sum, but probably not enough to prevent a sale either.
Perhaps the single group most likely to feel the pinch from the HST are homebuilders. In particular builders who have a building completing after July 1/2010 will be the most impacted. There is a transitional tax planned for these buyers, but rest assured the builders, or more likely buyers are going to absorb some of the new tax.
It seems the provincial government is convinced more tax is the cure for what ails us. Whether this is the case still remains to be seen. At least homebuyers purchasing re-sale real estate can breathe a collective sigh of relief since the increased cost of the HST will be less than a less than a pizza and a six pack of beer
-Scott Peckford – Mortgage Architects
More Kelowna Real Estate News at Vatage West Realty.com
http://www.vantagewestrealty.com
VIew More Kelowna Real Estate Listings at www.vantagewestrealty.com
Saturday, February 6, 2010
Wednesday, February 3, 2010
Kelowna Real Estate Quote of the Day
"No house should ever be on a hill or on anything. It should be part of the hill. Belonging to it. Hill and house should live together, each happier from the other." Frank Lloyd Wright
To view more incredible Kelowna Real Estate visit Vantage West Realty.
Monday, January 11, 2010
CHMC Kelowna Real Estate Update
KELOWNA - JANUARY 11, 2010 – CMHC
Kelowna area housing starts totalled 657 homes in 2009, down from 2,257 homes the previous year, according to Canada Mortgage and Housing Corporation (CMHC). Fewer multi-family homes accounted for most of 2009’s decline. “Strong price competition from a well supplied existing home market and high inventories of new, completed and unoccupied units constrained apartment condominium construction in 2009,”.
Kelowna’s new home construction market ended the year on a positive note. December housing starts, led by the detached home sector, increased to 72 units from 28 units in 2008. “Detached home starts have begun to trend back up in recent months,” noted Fabri. Both detached home and multi-family starts are expected to move higher in
2010.
For additional valuable real estate information please call or email a Vantage West Real Esate professional info(at)vantagewestrealty.com
Vantage West
Kelowna area housing starts totalled 657 homes in 2009, down from 2,257 homes the previous year, according to Canada Mortgage and Housing Corporation (CMHC). Fewer multi-family homes accounted for most of 2009’s decline. “Strong price competition from a well supplied existing home market and high inventories of new, completed and unoccupied units constrained apartment condominium construction in 2009,”.
Kelowna’s new home construction market ended the year on a positive note. December housing starts, led by the detached home sector, increased to 72 units from 28 units in 2008. “Detached home starts have begun to trend back up in recent months,” noted Fabri. Both detached home and multi-family starts are expected to move higher in
2010.
For additional valuable real estate information please call or email a Vantage West Real Esate professional info(at)vantagewestrealty.com
Vantage West
Monday, November 23, 2009
Urban Lofts in Downtown Kelowna
The third development to lock down Vantage West's productivity is a sharp new in-town development called Martin Lofts.Windmill Developments, the team behind Martin Lofts came to Vantage looking for a fresh, young company to market their quality, urban-style lofts.
For Vantage West, they know they've acquired a great opportunity to offer their clients something different. The value Martin Lofts is offering on fantastic floor plans is unlike anywhere else in Kelowna. For the most part, you can check out any of the apartment complexes in Kelowna and find the same thing, re-done. Martin Lofts takes the bull by the horns and finally mixes it up a bit; match that with the quality of the builder Kevin Edgecomb and that is a perfect combo.
Not to mention that the professionals a Vantage West are willing to get creative with how sales are made. From; Mortgage Buy-downs, trades, rent-to-own, whatever works best for the perspective client.
Martin Lofts are where comfortable, fun living is heading. A great location, a nice gym, quality throughout, all with the look and feel of a stylish, big city centre. Trendy, might be the word.
And they found they'd be the perfect fit with Vantage West Realty.
All this speaks nicely to the development of the company that's been making major real estate inroads in Kelowna. Take a look at the brilliant floor plans and new prices.
http://www.vantagewestrealty.com/developments.php
Friday, October 30, 2009
StoneBridge Lodge, StoneGate Resort and Big White Ski Resort
Time to take notice of Vantage West for the other major real estate company, is it not?
They just continue to further solidify themselves as the young, energetic, vibrant real estate group in town, and they continue to be a thorn in the side of the big names. With the corporate giants, clients find themselves getting lost in the shuffle, and not getting attention they deserve.
Enough people have found Vantage to be the complete opposite that just this past month, Vantage has secured deals with three large development projects.
They just continue to further solidify themselves as the young, energetic, vibrant real estate group in town, and they continue to be a thorn in the side of the big names. With the corporate giants, clients find themselves getting lost in the shuffle, and not getting attention they deserve.
Enough people have found Vantage to be the complete opposite that just this past month, Vantage has secured deals with three large development projects.
Two brand new, stylish Big White communities - Stone Bridge and Stone Gate - will be introducing Vantage West's services to both the resort world, and for the first time, to the Big White market.
For these two mountain projects, the appealing part of Vantage West was the unique manner in which the company operates. Simply put, they've got a better grasp on what works today. Better than the larger, lumbering agencies of yesterday that are unable and unwilling to adapt to the specific needs of the current market.
The high-end, beautiful properties at both StoneBridge and StoneGate are a nice fit with the style of the high-end company in Kelowna. It's chalet living with optimum amenities, class, style and fun - exactly what the type of people who hit up Big White are looking for.
These major developments have shown a serious trust in Vantage West: never before have the properties been available to be sold by anyone but the developer prior to now, which speaks volumes to what they know Vantage West can do for them.
As Joel Sherlock and AJ Hazzi have pointed out, it's a great fit for them as well. They'll have two offices at the hill to meet the needs of clients, as well as a home at StoneGate. "With it being the best location on the mountain. Aggressive new prices coupled with the apres ski lifestyle that Stonegate delivers made for a perfect fit to launch Vantage West's Development marketing division."
For these two mountain projects, the appealing part of Vantage West was the unique manner in which the company operates. Simply put, they've got a better grasp on what works today. Better than the larger, lumbering agencies of yesterday that are unable and unwilling to adapt to the specific needs of the current market.
The high-end, beautiful properties at both StoneBridge and StoneGate are a nice fit with the style of the high-end company in Kelowna. It's chalet living with optimum amenities, class, style and fun - exactly what the type of people who hit up Big White are looking for.
These major developments have shown a serious trust in Vantage West: never before have the properties been available to be sold by anyone but the developer prior to now, which speaks volumes to what they know Vantage West can do for them.
As Joel Sherlock and AJ Hazzi have pointed out, it's a great fit for them as well. They'll have two offices at the hill to meet the needs of clients, as well as a home at StoneGate. "With it being the best location on the mountain. Aggressive new prices coupled with the apres ski lifestyle that Stonegate delivers made for a perfect fit to launch Vantage West's Development marketing division."
Monday, October 26, 2009
Negotiating in Today's More Active Market
After a brief slowdown for a few months, the real estate market is roaring back in most of Canada's urban markets. The big question now for many home buyers is
- In today's market, will sellers be more or less open to negotiating their price?
As with most aspects of real estate, there's no one right answer to that question. Every transaction is different. Sellers will tend to determine their negotiating position due to a number of factors, such as their financial goals, personal time lines, their own motivation to move and many other factors, including market conditions.
However, it goes without saying that in an active market with limited inventory, such as we're seeing now in most of Canada's major urban centers, sellers tend to have more options. It's easier to hold firm on your price if you think there are other buyers out there who will be prepared to meet it. Of course, the seller is in an even stronger position when it comes to an all-out bidding war. Negotiating a price between one buyer and a seller tends to be a more measured process. When bidding wars come into the mix, emotions run high, time lines are tight and a greater sense of urgency exists.
This is when the expertise of your real estate professional really shows its worth. Buyers need to prepare their negotiating strategy with their sales representative in advance. They should know their limits going in, so they won't get caught up in the frenzied pace of a bidding war and make an impulsive decision.
Your Vantage West REALTOR can arm you with a wealth of information to help you plan your negotiating strategy. Information such as past sales, competition from other comparable listings currently on the market, and trends in the local marketplace can all be used in negotiations and help you to make an informed decision.
Want to know more about negotiating strategies? Contact your Vantage West REALTOR to find out more. You'll be glad you called us first!
http://www.vantagewestrealty.com/contact-us.html
- In today's market, will sellers be more or less open to negotiating their price?
As with most aspects of real estate, there's no one right answer to that question. Every transaction is different. Sellers will tend to determine their negotiating position due to a number of factors, such as their financial goals, personal time lines, their own motivation to move and many other factors, including market conditions.
However, it goes without saying that in an active market with limited inventory, such as we're seeing now in most of Canada's major urban centers, sellers tend to have more options. It's easier to hold firm on your price if you think there are other buyers out there who will be prepared to meet it. Of course, the seller is in an even stronger position when it comes to an all-out bidding war. Negotiating a price between one buyer and a seller tends to be a more measured process. When bidding wars come into the mix, emotions run high, time lines are tight and a greater sense of urgency exists.
This is when the expertise of your real estate professional really shows its worth. Buyers need to prepare their negotiating strategy with their sales representative in advance. They should know their limits going in, so they won't get caught up in the frenzied pace of a bidding war and make an impulsive decision.
Your Vantage West REALTOR can arm you with a wealth of information to help you plan your negotiating strategy. Information such as past sales, competition from other comparable listings currently on the market, and trends in the local marketplace can all be used in negotiations and help you to make an informed decision.
Want to know more about negotiating strategies? Contact your Vantage West REALTOR to find out more. You'll be glad you called us first!
http://www.vantagewestrealty.com/contact-us.html
Wednesday, October 14, 2009
First Annual Commercial Building Awards
The Okanagan Mainline Real Estate Board Commercial Zone is looking for
nominations for its first annual Commercial Building Awards which will be held November 5, 2009 at the Delta Grand Okanagan Resort and Conference Centre.
The gala event will highlight the best in commercial building in OMREB’s jurisdiction - from Peachland north through the Okanagan to Revelstoke - and will celebrate the best in commercial building projects that were completed between January 1, 2008 to September 1, 2009.
“we are pleased to be recognizing the unique variety of quality commercial, industrial and investment real estate developments throughout the Okanagan Mainline Real Estate Board,” says Gary Bowker, Vice Chair, Commercial Zone.
There will be at least nine categories represented at this event, although more could emerge once the nominations close in September. The categories are: Mixed Use, Community - Seniors Housing, Community Institutional, Retail, Industrial, Multi-Family Apartment, Multi-Family Townhouse, Hospitality, Commercial Renovation-Restoration. There will also be a “Judge’s Choice” award for best of show.
Nominations need to be received by OMREB by September 30, 2009. Eligible projects can be selfnominated. Nomination forms are available through the OMREB website: www.omreb.com
Sponsorships of the event are the Canadian Western Bank, Interior Savings, FortisBC Inc. and
Terasen Gas.
nominations for its first annual Commercial Building Awards which will be held November 5, 2009 at the Delta Grand Okanagan Resort and Conference Centre.
The gala event will highlight the best in commercial building in OMREB’s jurisdiction - from Peachland north through the Okanagan to Revelstoke - and will celebrate the best in commercial building projects that were completed between January 1, 2008 to September 1, 2009.
“we are pleased to be recognizing the unique variety of quality commercial, industrial and investment real estate developments throughout the Okanagan Mainline Real Estate Board,” says Gary Bowker, Vice Chair, Commercial Zone.
There will be at least nine categories represented at this event, although more could emerge once the nominations close in September. The categories are: Mixed Use, Community - Seniors Housing, Community Institutional, Retail, Industrial, Multi-Family Apartment, Multi-Family Townhouse, Hospitality, Commercial Renovation-Restoration. There will also be a “Judge’s Choice” award for best of show.
Nominations need to be received by OMREB by September 30, 2009. Eligible projects can be selfnominated. Nomination forms are available through the OMREB website: www.omreb.com
Sponsorships of the event are the Canadian Western Bank, Interior Savings, FortisBC Inc. and
Terasen Gas.
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