NEW GENERATION OF HOMEBUYERS
HOPEFUL HOMEOWNERS STAY IN THE NEST
More young Vancouverites are buying real estate, but they’re not exactly becoming homeowners – at least not in the traditional sense.
A local mortgage expert says many 20-somethings are now finding a way around the city’s sky-high housing costs by buying investment properties and renting them out – all while still living at home.
“(My parents) would much rather me stay at home and save than to not have anything to show for the rent I was paying,” said Angela Calla, host of CKNW’s The Mortgage Show.
The 29-year-old started saving aggressively in her mid-teens and by 20, was able to purchase her first piece of property. From then through 26, she bought a new property each year while still living at home.
THE B.C. FIRST-TIME NEW HOME BUYERS’ BONUS
SUBJECT TO APPROVAL BY THE LEGISLATURE, THE B.C. GOVERNMENT INTENDS TO IMPLEMENT A TEMPORARY BC FIRST-TIME NEW HOME BUYERS’ BONUS. EFFECTIVE FEBRUARY 21, 2012, TO MARH 31, 2013, THE BONUS IS A ONE-TIME REFUNDABLE PERSONAL INCOME TAX CREDIT WORTH UP TO $10,000.
REQUIREMENTS TO QUALIFY FOR THE BONUS
ELIGIBLE FIRST-TIME NEW HOME BUYER
You will qualify as a first-time new home buyer if:
• You purchase or build an eligible new home located in B.C.;
• You, or for couples, you and your spouse or common law partner, have never previously owned a primary residence;
• You file a 2011 B.C. resident personal income tax return, or if you move to B.C. after December 31, 2011, you file a 2012 B.C. resident personal income tax return (you will not be eligible for the bonus if you move to B.C. after December 31, 2012);
• You are eligible for the B.C. HST New Housing Rebate; and
• You intend to live in the home as your primary residence.
GOVERNMENT ANNOUNCES NEW HST/PST HOUSING TRANSITIONAL RULES
RETURN TO PST
As the province transitions back to the PST, which will replace the HST effective April 1, 2013, measures to ease the HST burden on new home buyers, include:
• The BC New Housing Rebate threshold will increase to $850,000 from $525,000, so that more than 90% of newly built homes will now be eligible for a provincial HST rebate effective April 1, 2012 .
• The maximum rebate will increase to $42,500 from $26,250 effective April 1, 2012 .
• Buyers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital Regional Districts priced up to $850,000 will be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012.
• For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price.
VANCOUVER DOWNTOWN MAP OF NEIGHBOURHOODS AND AREAS
FEATURING BEACH CRESCENT NEIGHBOURHOOD BY BUILDINGS
Vancouver4life features Vancouver’s Condominiums and Residential Buildings by areas or neighbourhoods in Downtown Vancouver and surrounding areas. Discover and learn about different Neighbourhoods, research Information on each Building, View Pictures, Google Maps and our featured MLS® Listings. Read articles on Real Estate News and Real Estate Statistics, architecture and design, find fun and entertaining Vancouver Events and visit our Food & Drink for fantastic Restaurants in Vancouver.
Vancouver4life provides you with valuable information whether you’re a Buyer or a Seller. We feature Studios, Lofts, Penthouses & Townhouses in the Downtown Vancouver area so if you’re Buying or Selling Real Estate we have the knowledge and the experience for both Buyers and Sellers.
Vancouver4Life
Vancouver Real Estate and Downtown Condos
Agnieszka Stryjecka
t 778.991.5881
e vancouver4life@gmail.com
50 WAYS TO GREEN YOUR HOME AND SAVE $$$ IN GREATER VANCOUVER
THE GREEN TOOL KIT
When it comes to making your home more energy efficient, you can easily make small changes that won’t cost you a dime. With even a modest budget, big changes are possible, especially if you qualify for some of the grants and rebates available to home buyers and owners going green. And you’ll recoup energy costs in the long-term making these change worthwhile. So here are 50 ways to help green your home.
COST SAVING PROGRAMS FOR HOME/PROPERTY BUYERS AND OWNERS
HOME BUYERS – COST SAVING PROGRAMS
Wise real estate decisions are made when you have a clear understanding of your personal financial circumstances. When assessing your situation, it is important to know that there is a broad range of cost-saving programs available to help you.
HOME BUYER’S PLAN: REGISTERED RETIREMENT SAVINGS FOR DOWN PAYMENT
• Canada Revenue Agency’s Home Buyers’ Plan lets qualifying home buyers use up to $25,000 of their Registered Retirement Savings Plan (RRSP) to buy a home. Couples can use up to $50,000. The home must be a principal residence, the home buyers must not have owned a home within the past five years and the loan must be repaid with 15 years.
• Disabled home buyers upgrading to a more accessible home also qualify as do relatives helping disabled home buyers. Home buyers who have already used the plan and have fully repaid their RRSP may be eligible to use the plan a second time.
Canada Revenue Agency/Home Buyers’ Plan/1.800.959.8287
WHAT IS A LOFT?!!
LIVING A LOFT LIFE ….
Many of us wonder …. WHAT IS A LOFT??! Could I live a loft-style life??! Would such a life be suitable for me and my current needs??
Lofts, originally popular with struggling artists, now optimize a luxury living. They offer large and open spaces with high ceilings and big windows that bring lots of light. Lofts are usually centrally located and are often made with a modern design. They are typically found in former commercial buildings that were converted to residential buildings. It is a living space not partitioned into rooms, or a small space built above a larger room. It could be a floor consisting of a large, un-partitioned space over a factory, warehouse or other commercial or industrial space. It could also be a conversion of a no longer economically viable industrial and commercial buildings to residential loft communities.
When industrial developments are developed into condominiums instead of apartments, they may be called loft condominiums. The general term warehouse-to-loft conversions may sometimes be used for development of industrial buildings into apartments and condominiums. “Loft-style” may also refer simply to developments where a street-level business occupies the first floor while apartment “lofts” are placed below the first floor.
HOME BUYERS – CLOSING COSTS – BC
TYPICAL CLOSING COSTS
The last big step in the home-buying process is the CLOSING DAY – it is the day that you complete all the paperwork for your new home. Each of the closing day items that I outlined costs money so it is recommended that you set aside at least a couple thousand dollars.
PROPERTY TRANSFER TAX AND FIRST-TIME HOME BUYERS’ PROGRAM
When a residence is purchased, a Property Transfer Tax (PTT) is applied. It must be paid before any property can be legally transferred to a new owner. The tax is calculated at 1% on the first $200,000 and 2% on the remaining balance.
The First-Time Home Buyers’ Program offers an exemption to the PTT if the fair market value of the residence is $425,000 or less. In all regions there is also a proportional exemption for first-time buyers of homes with a fair market value up to $25,000 above the thresholds. This means that in the Greater Vancouver area, homes valued up to $350,000 ($325,000 threshold + $25,000 proportional exemption) will be charged a pro-rated PTT. For more information visit: The First Time Home Buyer’s Program
HOME BUYERS – TIPS ON BUYING A HOME
THE BIG DECISION
Where you live is your most cherished space and the place you call home is the foundation of your life. You need a place to wind down, to relax and to rejuvenate so before you start looking for your “dream home”, here are few things to help you along the way:
1. KNOW YOUR FINANCES
Before you start looking for that “dream home” it’s important to become aware of how much you can afford. This knowledge will allow you to spend your valuable time looking productively at homes which are within your predetermined price range. After all, you want your home to complement your lifestyle, not overrun it.
Obtaining a mortgage pre-approval s an important initial step in securing a mortgage to buy a home. The lenders will analyze your current income, debt situation and credit history in order to qualify you for a maximum loan amount. This will give you a clear picture of your financial parameters and an idea of your purchase price range. More importantly, with a pre-approval, you can hold your interest rate for up to 120 days. If the rates go up from that time until you buy, you are protected.
