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Can you clarify what this uncertainty is all about? I realize that you may not know exactly what is happening because this is a question that seems like it should be answered by a developer but I'll give it a shot anyway.
Thank you Marko!
Uncertainty over the HST transition rules and new condos. What is really going on?
Started by
VicBooster
, Dec 30 2011 11:59 AM
3 replies to this topic
#1
VicBooster
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- Member
- 200 posts
Posted 30 December 2011 - 11:59 AM
On VV there have been discussions on some condo projects not moving forward because of something referred to as uncertainty over the HST transition rules or something like that. The high profile Era project on Yates was ready to start marketing then suddenly the developer halts everything due to this HST issue.
Can you clarify what this uncertainty is all about? I realize that you may not know exactly what is happening because this is a question that seems like it should be answered by a developer but I'll give it a shot anyway.
Thank you Marko!
Can you clarify what this uncertainty is all about? I realize that you may not know exactly what is happening because this is a question that seems like it should be answered by a developer but I'll give it a shot anyway.
Thank you Marko!
#2
MarkoJ
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- Member
- 5,780 posts
- LocationVictoria
Posted 30 December 2011 - 01:08 PM
Disclosure: I am not an accountant. Rebates noted below do not apply in all situations.
This is my understanding on a $400,000 unit.
Prior to HST
Price: $400,000
GST Payable: $20,000
GST New Housing Rebate: $3,150
Total Purchase Price: $416,850
HST Payable as of July 1, 2010
Price: $400,000
HST Payable: $48,000
Federal Portion New Housing Rebate: $3,150
BC Portion New Housing Rebate: $20,000
Total Purchase Price: $424,850
HST Transition.....
?
The ? is the uncertainty; however, for the developer other factors come into play such as input costs, etc.
The developers that are currently in pre-sales are doing various things. For example, at the Bayview Promontory HST is included in the price AND I received this email from them a few months ago:
"While the Provincial government has not yet announced how the HST will be phased-out, we want you and your clients to know how we at Bosa Properties will be handling the coming months.
All sales at Promontory include the HST net of the home owners rebate. What’s more - should your client purchase a Promontory home today, and should the amount of HST due on their purchase be less than what we calculate on the purchase date, we’ll provide your client with a discount equal to the amount of the reduced taxes payable."
This is my understanding on a $400,000 unit.
Prior to HST
Price: $400,000
GST Payable: $20,000
GST New Housing Rebate: $3,150
Total Purchase Price: $416,850
HST Payable as of July 1, 2010
Price: $400,000
HST Payable: $48,000
Federal Portion New Housing Rebate: $3,150
BC Portion New Housing Rebate: $20,000
Total Purchase Price: $424,850
HST Transition.....
?
The ? is the uncertainty; however, for the developer other factors come into play such as input costs, etc.
The developers that are currently in pre-sales are doing various things. For example, at the Bayview Promontory HST is included in the price AND I received this email from them a few months ago:
"While the Provincial government has not yet announced how the HST will be phased-out, we want you and your clients to know how we at Bosa Properties will be handling the coming months.
All sales at Promontory include the HST net of the home owners rebate. What’s more - should your client purchase a Promontory home today, and should the amount of HST due on their purchase be less than what we calculate on the purchase date, we’ll provide your client with a discount equal to the amount of the reduced taxes payable."
Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty
www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!
#3
VicBooster
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- Member
- 200 posts
Posted 30 December 2011 - 02:35 PM
Thank you Marko this is exactly what I was looking for.
#4
MarkoJ
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- Member
- 5,780 posts
- LocationVictoria
Posted 02 January 2012 - 02:56 PM
I wonder what the odds are of the government dropping the HST in the new Provincial Budget?
Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty
www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!
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