Below is a summary of the new rules from the bcrea.com website:

When does HST apply, and when does GST apply?

HST applies if tax becomes payable before April 1, 2013.

GST applies where tax becomes payable after March 31, 2013. In addition, the BC transition tax may then apply where construction or substantial renovation is at least 10% complete on April 1, 2013.

Generally, when does the tax become payable?

Except for the sale of certain residential strata units, the tax is payable on the earlier of the following dates:

• when the seller transfers ownership (also known as the completion date) of the new home to the buyer, OR
• when the seller transfers possession of the new home to the buyer under the Contract of Purchase and Sale.

Will the PST apply to real property?

1. No. HST will generally cease to apply on the purchase of new housing as of April 1, 2013, even if the Contract of Purchase and Sale was signed or new home construction started before April 1, 2013, provided neither possession nor ownership transfer before April 1, 2013. However, the provincial government may collect a temporary transition tax of 2% if certain conditions are met.

Are there any rebates for sellers related to the temporary transition tax?

Yes, the BC government has introduced a transition rebate to recognize that a seller will not be able to claim input tax credits on PST paid on construction materials acquired after March 31, 2013. The rebate is available where both conditions are met:

• The BC transition tax applies to the sale of new housing, AND
• Construction or substantial renovation is at least 10%, but not more than 90%, complete, before April 1, 2013.

The transition tax rebate for new housing will be calculated on the degree of completion of the housing as of April 1, 2013:

How will the transition affect the way I prepare or counter a standard form Contract of Purchase and Sale?

The BC government has introduced disclosure requirements for builders (i.e., sellers) during the transition period to clarify the taxes and rebates that are included in the sale price stated in the Contract of Purchase and Sale.

Agreements entered into from December 1, 2012 to March 31, 2015 must contain the following prescribed information:

• the value of consideration (i.e., purchase price), disclosure of whether tax is inclusive or exclusive of the price, and a breakdown identifying the amount and rate of each tax and/or rebate where applicable;
• a statement that discloses whether or not the seller is a foreign supplier (essentially, a “foreign supplier” is not resident of Canada); and
• if the seller is not a foreign supplier, then the following Notice to Purchaser “If (a) both ownership and possession of newly constructed  or substantially renovated housing transfer on or after April 1, 2013 and (b) either ownership orpossession of the housing transfer before April 1, 2015, then
  • the 7% provincial component of the HST and the BC HST new housing rebate for primary places of residences will not apply,
  • the 2% BC transition tax may be payable by the buyer, and
  • the supplier may be eligible for a BC transition rebate in respect of the housing.

Taken from http://www.bcrea.bc.ca/government-relations/hst-pst-resources/pst-transition-rules

We are now affiliated with a reliable Property Management Company who is committed to provide professional services to you as Landlords.

Please e-mail joannejonathan@gmail.com or call us for a free evaluation at 604-771-8143 for more information on the services that we provide.

By Elizabeth Weintraub

http://homebuying.about.com/od/buyingahome/qt/Waittobuy.htm

"Everybody wants to know how to best time the marketwhen buying a home. It's just natural. Especially if you're thinking about buying in a down market where homes prices are declining. You wonder how low they will go and whether you should wait, right?

Some Home Buyers Should Buy Immediately

You're probably thinking: "Of course, she would say that. She's a Realtor, and agents always say 'Now is the best time to buy'." Well, here is why:

• If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall.
• If you can arrange for alternate housing, a smart strategy is sell now, wait a few months, then buy your new home.
• If you sell and buy simultaneously, you'll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.

Consider the "Loss" on Selling Your Present Home

For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and "lose" $30,000.

Consider Your Real Profit

Now, consider this. Say you bought this home 10 years ago and paid $100,000. You're still ahead $170,000, less costs of sale, aren't you? (This ignores monthly payments, but you would make those if you were renting, too.)

Consider the "Savings" on Buying Your New Home

If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000.

Review of Selling and Buying Numbers

1. So you "lost" $30,000 on the sale of your home
2. But you "made" $50,000 on the purchase of your new home
3. Doesn't that put you $20,000 ahead?

A good strategy is to weigh all the pros and cons of real estate ownership before making the decision to buy or sell. Don't panic over newspaper headlines. Make an informed decision. Run your own numbers."

Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

Summer months are usually synonymous with family and vacation times or just a time of relaxation, especially with the Summer Olympics. This year, we have decided to use the middle of summer to launch our New website. We hope that you will be able to use the site for your real estate needs and to find up to date information on the market. You will be able to search homes through the help of google mls map and soon be able to search specific home market areas. We would love to be able to assist you with finding your dream home, to assist you in selling your current property or to simply provide you with answers to your real estate questions. Please feel free to e-mail, to call or to give us a tweet!

Joanne Jonathan Team