Do you know about the British Columbia First Time Home Buyers’ Property Transfer Tax?

The First Time Home Buyers’ Program (FTHB) was introduced on 22 March 1994 to provide an exemption to individuals purchasing their first home.
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When buying a new home, it’s important to remember that there will be extra expenses to meet besides the mortgage.

In addition to their down payment, purchasers should have sufficient funds to cover the following unavoidable closing costs:

• the property transfer tax, which is 1% of the first $100,000 and 2% on the remainder;
• Harmonized Sales Tax (HST) liability: the GST rules that used to apply to residential property also apply under the 12% HST, which also applies to non-residential sales and leases in the same way that the 5% GST did; more detailed information is downloadable regarding HST here;
• home inspection fees, which can cost between $300 and $400;
• reimbursement of the seller for the portion of the property tax that has already been paid, which could be as high as $2000; and
• legal fees, which may total between $800 and $1,200.

Scratching around for a mortgage? Here’s a bright idea:

Under the Canadian federal government’s Home Buyers Plan, buyers can use up to $20,000 worth of their RRSPs toward a mortgage. Couples can use up to $40,000. Ask Sonia for more information today!

So you’ve decided to buy a condominium . . .

Condominium living is a popular option for many Canadians as it can be a relatively carefree housing option. Currently, in some parts of the country, one out of three new homes built is a condominium. Interest in condominiums tends to grow with a shortage of rental accommodation, relatively low mortgage interest rates, and urban core renewal. Most major newspapers now include a condominium section which recognizes the increasing number of people who already live in, or aspire to live in, a condominium.
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There is no requirement in British Columbia that the purchaser of real property have any particular residency or citizenship. To occupy residential premises, the non-resident must comply with Immigration requirements. These vary depending upon the nationality of the Individual Involved. U.S. residents are relatively free to occupy residential premises In Canada on a temporary basis. You may wish to check with your nearest Canadian Consulate regarding any residency permits that may apply in the event of an extended stay In Canada. You may also wish to bear In mind the following information:
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What is a mortgage?

A mortgage is a contract between one party who wants to borrow money and another party who wants to lend money. The borrower is referred to as the “mortgagor,” and the lender is referred to as the “mortgagee.” These terms can sometimes be confusing. The terms “borrower” and “lender” are also used. The mortgage agreement states that, in exchange for the money that the lender is providing, the borrower will provide security to the lender in the form of a mortgage document to be filed against the property. For the purposes of this article, the term “property” will refer to the purchase you are considering, whether it be a condominium, house, multi-dwelling (such as duplex, fourplex, apartment), or raw land. The mortgage document specifies the rights that the lender has to the property in the event of default on the terms of the mortgage by the borrower.
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Those of us who invest in real estate want to know how to get the most out of our investments. Here are a few tips:

1. Rental units

Let’s start with the condition of the rental units. We want to make sure the tenants keep them clean. Since excess clutter can be a potential fire hazard, the living space should be kept tidy to prevent the outbreak of fire. If a fire does occur, tenants should always have a safe exit available. There should be proper ventilation to keep mildew and mold from growing. Some tenants don’t have enough furniture to fill an apartment, whereas some have so much that mice, roaches, and other vermin feel at home too. At least once a year, your onsite managers should inspect all units. They should take notes and digital photos, because you will need to know what they observed. It might even be a good idea to accompany them occasionally. Two sets of eyes are always better than one.
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Investing in real estate is a tricky business, and, like the stock market, every investment will not be a great one. As a matter of fact, what makes a great real estate investment is keyed as much to timing and interest rates as it is to the true operating costs of a property.
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The decision to pursue homeownership may be based on many factors: everything from a friend’s decision to purchase a home or a family member’s advice against “throwing your money away on rent” to your bad experience with a landlord or the noisy neighbors sharing your wall. While all of those scenarios (minus peer pressure, of course) may inspire valid arguments for considering the purchase of a home, how do you determine if you’re genuinely ready to join the ranks of homeowners?
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