Please take note:

Just a quick update :

So many people are asking if there are exceptions to the charge. The HST will be charged on Commisions.

What I can determine is as follows:

• If the deal is firmed up before july 1 and closes after July 1 – 5% gst is charged 
• If the deal is 90% done before July 1 , and firms up  after that  possible 5% depending on what needs to be completed.

• Otherwise anything after July 1 is 13%

$200,000 @ 5% commission  is $ 10,000.00  .This is split four ways  ( Buyer, Agent, Seller Agent, Buyers Broker, Sellers Broker )

HST would be13% or $ 1300.00 cdn funds.

Please access all government web sites in first HST article. New Homes tend to be a bit more complicated . There is a grandfather clause which I have not covered. This depend on how much of the home is constructed before and after.

Hope these three HST articles assist you with your planning,

carl

The HST will not be on Condo Fees. However the unfortunate thing is most of the components of a Condo Fee are made up of services. Landscaping, Maintenance and Repair. As of July 1st These services will have HST 8% which is added to the 5%( GST) . The total tax is 13%. I understand water may not have HST but have not verified this.

So it is safe to say you will see budgets " stretched" and yes Condo Fees will increase by around 5% to 8%. There will be pressure on contractors to lower their prices as well.

So yes there is HST ( sort of ) ,

Carl  

I wanted to post some general information on HST. Many people are asking questions  so I hope this clears things up.

HST is 13% . It is considered value added Tax.  

If you are Selling your home:

Real Estate Agents who normally charge 5% GST on commissions will have to charge 13%. This is regarding resale homes and is on the commission only. This  will be on July 1, 2010. There are some exceptions but on a regular resale home. This is the tax that would apply.

If you are buying a Resale home extra costs will be incurred HST will be charged on home inspections, legal services, high ratio mortgage premiums, fire insurance premiums.

OREA estimates the HST will add $1,449 in new taxes to an average resale home costing $302,354. And, OREA claims the HST will add an estimated $262 million in new taxes annually to residential resale real estate transactions.

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RE new Homes:  Builders would use the same process they use with regard to GST. The Buyer must qualify for the rebate. ( The new home would be a primary residence )  Clarify your HST before signing on the dotted line and read the fine print.

Under the HST, new homes worth less than $400,000 will qualify for a 6% tax rebate, but new homes worth more than $400,000 will be subject to an additional 8% tax. To explain if a buyer pays $500,000 the net tax would be $ 16,000.00 after receiving the rebate of $ 24,000.00

Here are some helpful Links.

http://www.servicecanada.gc.ca/eng/goc/gst_new_housing.shtml

http://www.fin.gov.on.ca/english/index.html

http://www.rev.gov.on.ca/english/guides/rst/206.html

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html

All information deemed reliable but not guaranteed.  Please seek the advise of your tax professional and contact government agency to clarify your costs. As I  deal with residential resales it appears the impact will be minimal. I encourage real estate to be a long term investment.  Hope this information helps.

Carl

Canadians flock to buy U.S. real estate ORLANDO, Fla. – March 19, 2010 – Canadians were the largest group of foreign homebuyers in the United States in 2009, according to the National Association of Realtors – and Florida Home Finders says they accounted for 30 percent of purchases by foreigners in the Sunshine State. Canadians find U.S. properties less expensive, and they’re rushing to take advantage of a favorable exchange rate and warmer climate. “You have this rare perfect storm in the United States where you have low interest rates, still falling prices and a Canadian dollar that keeps going up,” says Arnold Porter of Phoenix-based realty brokerage Arizona for Canadians. Toronto resident Stacey Lynn recently purchased two condominiums in Florida: a one-bedroom in Naples for $54,900, or the cost of a parking space at an upscale condo in downtown Toronto, and another in Sarasota for $86,000 that would have been worth over $200,000 at the height of the housing boom. Experts predicted that a flood of Canadians would enter the U.S. real estate market during their March break. Source: Hamilton Spectator (03/16/10) Wong, Tony © Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688 The combination of our low prices and the Canadian dollar near par makes it as good a time to purchase as when I moved here from Ontario in 1992. Please let me know if I can help you or any of your clients with their search for a Florida home. You can search our MLS by visiting my website at www.johndanzey.com Looking forward to working with you and your clients.

JUST  SOLD 98% ASKING  PRICE

OPEN HOUSE THIS SATURDAY AND SUNDAY 2 PM TO 4PM FEB 13 – 14

This lovely 4 bedroom 3 level side split is in a quality neighborhood in Stoney Creek, Ontario. The home is well cared for and neat as a pin.  Full wheelchair accessible home!! The home has been retrofitted for someone with a disability. Complete main floor living with access to deck. MlS # H 3030167 Priced comptetively at $ 289,000 .  A Family could save thousands converting a home to accomodate  their needs. Driveway has is double drive and can easily accomodate 4 cars. Also three large tastefully decorated bedrooms on the top floor. This home is larger than it looks .  For complete photos please access www.realtor.ca and enter H 3030167.

The Greater Hamilton-Burlington area resale market reported a
total of 750 units sold in January in the Hamilton-Burlington Real Estate market.

The January Sales were more normal results. December was booming and a slight dip was inevitable. Residential properties totalled 714  sales in total.

The average price of freehold residential properties sold in the month of January was $302,474, an increase of 10 per cent over the same month last year.Inventorys are very low especially in Oakville, Milton and Burlington.

 In the condominium market the average price of condominiums in January was $230,583, an increase of 10 per cent from January 2009.Some information for this article provided by the Hamilton,Burlington Real Estate Board.

On a recent trip to Naples Florida, I was amazed at how affordable owning a Florida Home could be. Naples and surrounding area is a beautiful community comprised of many gated communties which now are priced at all time lows.

Due to the overwhelming demand of inquiries I have partnered with a Florida Estate Company to sell Florida Properties in the Naples Area.

For more information please contact me :

Carl  905 730 5919

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Burlington Condos : Are you curious what your Condo in Burlington, Ontario may be worth ? Thinking of upgrading or downsizing.  Get a Free Report with up to the minute statistics based on all the Condos in Burlington for the past six months. To get your free report on Burlington Condos contact carl @ carlstars.com or go to condosatwalkersline.com.    Carl Stars

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