HST and a Hot Spring 2010 Greater Vancouver Market!
Some interesting information you all should be aware of...
I spoke to the Real Estate Board (MLS Department) the other day, and now that the Olympics are over, they have been flooded with new listings and are now so far behind with processing them. I believe this is due in part to the fact that people are not only getting ready for the spring market, but they also want to sell before the HST comes into effect (July 1, 2010) - that's just my opinion… isn’t that interesting? Who knows what kind of impact the HST is going to have on the market! My guess is that people don’t want to take any chances on paying more taxes so the majority are going to try to buy and sell now.
Prospective sellers or buyers should be aware to act soon if you wish to avoid paying this additional tax! This tax will apply to all goods and services. This will include your lawyer/notary fees, home inspector fees, and realty fees to name a few. Also, there will be a replacement of GST (5%) to HST (12%) to all new constructions - This could surmount to thousands more in closing costs!
Remember, you MUST have a possession/closing date prior to July 1, 2010 in order to be exempt from this additional tax. Read more here.
In theory, this leaves less than 4 months to save a lot of money, and really, that isn’t that long by the time you get the property exposed, you receive an offer and set a possession date!
At FSR, we like to keep our clients informed as to the realities of the current market conditions so they can make better decisions. I have a feeling that the next few months in the real estate market are going to be nuts!
Donna Fuller – FSR Managing Broker