Home Buyers’ Plan (HBP)

Here is another incentive to assist people with home ownership.

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $20,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability .

Under proposed changes, for 2009 and subsequent years, withdrawals made after January 27, 2009, the maximum is increased to $25,000.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html

Information from government of Canada web site deemed accurate but not guaranteed.

The Home renovation Tax credit means you can qualify for $ 1,350.00 on renovations if they are completed by next February.

The credit will only be available for the 2009 tax year and applies to eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 ($9,000 x 15%).

Here is the link to assist you further http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html

Information from Government of Canada web site deemed accurate but not guaranteed.

First time buyers are gettting  assistance from the government. You can now qualify up to $ 750.00 towards your closing costs.

. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

3. Who is eligible for the HBTC?

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

For more information here is the link  http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

Information from Government of Canada website Information deemed reliable but not guaranteed

Grants and Rebates for Consumers

The Government has created a Land Transfer rebate program for First Time Buyers.

http://www.rev.gov.on.ca/english/bulletins/ltt/1_2008.html

For more information see Ontario Government Ministry of Revenue Web site.  Rebates are claimed

at the Land registry Office.

Amount of Refund

The amount of the refund claimed will, if granted, offset the land transfer tax payable. The maximum amount refundable is $2,000.

Examples:

Information from Government of Canada website. Information deemed accurate but not guaranteed.

I will be hosting an open house today at 592 Vanderburgh Drive, Burlington ON. This home is steps to NorthShore where you can have an enjoyable stroll  to Spencer Smith Park. The home has hardwood and ceramics  with a year round celarium. Walkout to decks, pool patio with gas barbeque. Granite kitchen and updated bathroom by Opal.  A great home to enjoy when living in Burlington.    Looking forward to seeing you there. Priced at $ 439,900.

If you are buying a home in the Hamilton Market . There is currently a lead pipe replacement program. Details are on the city of hamilton web site. Now lead is new concern for older homes. It is my understanding if you have a shower in the morning and the water runs for five minutes your drinking water is safe. It is without argument good to replace any lead piping, this is a fact. However a more recent oversight is that of galvanized plumbing.

While there are some insurance companys that will provide insurance it will be 3 times the rate.

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The February market has showed signs of life with 750 sales. However please note this is a 27.6% DECREASE  from last years stats. We have showed a 58% increase since January which demonstrates people have come out of hibernation. The average price of residential  properties is at $ 278,611 which is impressive compared to what has happened in the United States. The actual market price decline is 4.2%.

As mentioned the biggest mistake people are making is they are chasing the market. Listing  your home on “fall Statistics” makes no sense.  Pricing is extremely critical, however I cannot emphasize enough the importance of home staging.  

On a personal note I have ran open houses the past four weeks and the number of visitors has totalled to 56 family’s and first time buyers. This is tremendous traffic! Thats is 14 per open house ! Many buyers are taking advantage of the land transfer tax rebate and various credits to off set costs for the first time home buyer. It has been a challenge to move the more expensive inventory and in my view the reductions have been more dramatic. Interest rates are very low and most mortgage people have been posting 2.5 plus .80 = 3.30 variable.

This is an excellent time to buy but as always I caution people to buy what they can afford.

Carl

some statistics provided from the hamilton real estate board