If you purchased your first home last year, you may qualify for two tax credits on your 2012 tax return.

1. First-Time Home Buyers' Tax Credit (HBTC)

What is the Home Buyers' Tax Credit (HBTC)?


The HBTC is a non-refundable federal tax credit, based on an amount of $5,000, for first time home buyers that acquired a qualifying home in 2012.

How is the new HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2010) by $5,000. For 2012, the credit should be $750.

Who is eligible for the HBTC?


You can qualify if:

• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.


How do I claim the HBTC?


Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.
 

Do I have to submit any supporting documents with my income tax return?
No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA)
 

For complete information on the Home Buyers’ Tax Credit (HBTC) visit the CRA's website >> 


2. The BC First-Time NEW-HOME Buyers' Bonus  

If you purchased a brand new home after February 21, 2012,  and paid HST, you may qualify for an additional $10,000 personal income tax credit.

For more information on The BC First-Time New Home Buyers’ Bonus click here >>

Chances are that if you've been exposed to the local media here over the past couple of weeks you're familiar with the following

• We're one of the most expensive cities in the world for housing
• We're one of the most livable cities in the world
• Our housing market is in a bubble
• .....the bubble's going to pop any minute now
• ...wait maybe we're not in a bubble?
• Our real estate is being snatched up by foreigners forcing prices further out of reach 

One thing is for sure though, us Vancouverites love talking about the market....and by 'talking about' it's mostly polarized into 'complaining about' (in the case of frustrated home buyers) or 'bragging about' (in the case of home proud sellers) the market. 

So when exactly were the Golden Years, when there was an abundance of housing stock, affordable homes, and local ownership for local occupancy? Local journalist Jesse Donaldson decided to do some digging and find out. Here's a great article he wrote for Open File Vancouver:

 Space Cases: 100 Years of Complaining  

Watch Bob Rennie's full speech at the Urban Development Institute's Luncheon on May 17, 2012

Last week I attended a talk by the infamous Bob Rennie on the condo market here in Vancouver. A few topics that he covered included the numbers behind the recent Marine Gateway project (which sold out within a matter of hours of launching), the progress on the Olympic Village sales, and more generally the need for more density in our city to be able to keep up with population growth. 

Here are a few takeaways from his talk:

• By 2026 the population in Vancouver (not metro Vancouver, but in the city itself) is expected to increase by 94,000 people.
• To keep up with this increased demand we will need approximately 53,000 new homes. 
• Since our supply of land is so limited the only way we can tackle affordability is by increasing density, and building more homes (ie. condos) on the limited land we have. 
• The best locations to maximize density are around transportation hubs, particularly around skytrain stations.
• A large proportion of pre-sale buyers (almost 2/3rds) in our market are 'passive investors', who already own a home and are buying for investment/rental purposes. For the most part these investors are not 'speculators', and they are putting down 20% (which is our big difference versus our US counterparts who buy with very little down), and are buying with a long term outlook. 
• These passive investors are absolutely critical to our supply of rental housing.

If you want to catch a glimse of Bob here's a link to his appearnace on Studio 4 with Fanny Kiefer recently>>

As of December 13, 2011 Depreciation Reports have become mandatory requirements for all strata corporations consisting of 5 or more units. Strata corporations have to 2 years to comply with this new legislation and have their reports prepared.

Although this is a new development here in BC, Depreciation Reports are common practice in other regions such as Ontario and much of the US.

What is a Depreciation Report?

Depreciation Reports, also known as Reserve Fund Studies, are useful planning tools to establish long term planning for common property* and common assets owned by strata corporations (the property owners). They assess the current condition of all common assets, the expected remaining lifetime of building systems and physical components, and identify a reasonable estimate of the replacement costs associated with their future replacement. 

For a comprehensive guide to depreciation reports please visit The Condominium Home Owners Association of BC (CHOA) Depreciation Report Information Guide. 

* For more information on Common Property and the role of Strata Corporations read  'Understanding Condos' 

How will this impact our condo market here in Vancouver?

Currently many strata corporations in our province are not effectively planning for capital maintenance expenditures. Their focus is on keeping maintenance fees low, and often as a result needed expenditures are deferred (which incidentally has been shown to increase the total cost of such projects by 30-50% in the end). Since these expenditures are not properly planned for or saved for by way of maintenance fees, the costs to complete these projects is funded by way of special levies, which can be very costly (anywhere from a few thousand, to over tens, sometimes hundreds of thousands  dollars per unit) and come as a surprise to many condo owners & recent purchasers.

All in all these reports are going to be very advantageous for both current condo owners and prospective buyers, who will now have a clear picture of what state the building is currently in and what kinds of costs they can anticipate in the future.

With this however, we are also anticipating some significant changes. Two big ones will include:

Maintenance Fee Increases

It is expected that many strata corporations will opt to increase monthly maintenance fees. One of the goals of introducing these reports is that strata corporations will be encouraged to do a better job of planning for and saving for major expenses. One way to do this is to have owners contribute more money towards the contingency reserve fund every month as part of their strata maintenance fees.

At a recent seminar I attended, Tony Gioventu, Executive Director of the Condominium Homeowners Association (CHOA) pointed out that currently if we compare the average monthly contribution condo owners make to the contingency reserve fund here in BC it’s $22/month, compared to $80-100/month in Ontario.

Although many owners and condo buyers fear high maintenance fees, this is not a bad thing (depending on how these funds are being spent of course). If these funds are properly allocated and used to proactively address needed maintenance projects, home owners may actually save money in the long run.**

** By deferring needed maintenance projects to avoid paying for them, many strata corporations waste a shocking amount of money - the end cost of these projects has been shown to increase by 30-50% when deferred.

Changes in Property Values

The introduction of mandatory Depreciation Reports is expected to produce a dynamic shift in our condo property values here in Vancouver. This will create greater transparency for buyers and will affect how much buyers are willing to pay for a similar condo in one building, versus one in another building. Up until now it has sometimes been difficult for buyers to assess the exact state of a building and when major expenses relating to major asset replacements will be expected. With these reports in hand buyers will now have a very clear picture of what’s going on and what to expect down the line. Buildings that have not been keeping up or effectively planning for needed capital maintenance projects will likely suffer in terms their of property values.

Read CHOA's information guide on Depreciation Reports in BC >>

Darcy Wintonyk and Lynda Steele, ctvbc.ca
Date: Wed. Apr. 11 2012 12:31 PM ET

The much hated Property Transfer Tax celebrates its 25th birthday this spring, and like the never-ending airport improvement fees, consumers say the tax has outlived its original intent.

The PTT arrived in 1987, the same year Jon Bon Jovi topped the charts with "Livin on a Prayer" and the Loonie made its debut. Back then the average home price in greater Vancouver was just over $147,000.

It was in those very different times that former premier Bill Vander Zalm introduced the Property Transfer Tax – one per cent on the first $200,000 of a home's sale price and two per cent on the remainder.

"The idea of it was that we were going to tax speculation and wealth -- so you had 95 per cent of the homes at that time below that $200,000 threshold," said Eugen Klein of the Real Estate Board of Greater Vancouver (REBGV)

But a quarter century makes a big difference. The average price of a detached home in greater Vancouver now is just over $1.03 million, but the tax threshold remains locked at $200,000.

Klein said if the PTT was applied to only the top five per cent of all home sales today, as it was intended, the $200,000 threshold would need to be raised to more than $1.4 million in greater Vancouver.

Only 2.5 per cent of homes sold on the Multiple Listing Service in greater Vancouver in 2011, or 839, sold for less than $200,000

Read more (CTV News Article - April 11, 2012) >>>

 It's tax time! And although that's not something most people get terribly excited about, it could be good news if you bought your first home last year. 

If you were a first time home buyer, and purchased a qualifying home last year, you may be able to claim an extra credit on your income taxes this year via the Home Buyers' Tax Credit (HBTC) incentive program. 

1. What is the home buyers' tax credit (HBTC)?

The HBTC is a non-refundable tax credit, provided by the Government of Canada to help first-time home buyers. It is based on an amount of $5,000, and is offered for certain home buyers that acquire a qualifying home (see below).
 

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2011) by $5,000. For 2011, the credit will be $750.

3. Who is eligible for the HBTC?

You can claim an amount of $5,000 for the purchase of a qualifying home made in 2011, if both of the following apply:

• You or your spouse or common-law partner acquired a qualifying home.
• You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

4. What is a qualifying home?

A qualifying home must be registered in your and/or your spouse's or common-law partner's name in accordance with the applicable land registration system, and must be located in Canada. It includes existing homes and homes under construction.

The following are considered qualifying homes:

• single-family houses;
• semi-detached houses;
• townhouses;
• mobile homes;
• condominium units; and
• apartments in duplexes, triplexes, fourplexes, or apartment buildings.

5. If I buy a house, can my spouse or common-law partner claim the HBTC?

Either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $750.

6. How will I claim the HBTC?

Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.

7. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA).
 

For more information on the HBTC watch this video from the CRA >>>

In case you needed a reminder on why Vancouver is one of the best places on earth to call home, here it is...

Bob Rennie: Help Transform Where We Live—Take the Urban Futures Survey from PlaceSpeak on Vimeo.

Share your input! Take the short survey and share what matters to you, and how you think our city should develop. 
www.UrbanFuturesSurvey.com

Thinking of buying a new home and wondering how much HST will really cost you?

* First of all it’s important to clarify that HST is only applicable on the sale of newly constructed (or substantially renovated) homes. It is not added to the price of resale homes. For more information on how HST affects homebuyers click here.

Sales of newly constructed or substantially renovated homes are now subject to an HST tax of 12% on the purchase price. Fortunately there is some relief to help offset this tax from both the Federal and Provincial levels.

If you are buying a newly constructed home and plan to use it as your primary residence, you may qualify for two rebates: the BC New Housing Rebate and the Federal GST/HST New Housing Rebate.

WHAT IS THE BC NEW HOUSING REBATE?

The BC New Housing Rebate is a rebate of 71.43% of the provincial component of the HST paid (7% - formerly known as PST), up to a maximum of $26,250. The rebate maxes out at a purchase price of $525,000 and then stays flat at $26,250 for properties above that threshold. 

WHAT IS THE FEDERAL GST/HST NEW HOUSING REBATE?

The Federal New Housing Rebate is a rebate applied to the federal component of the HST paid (5%- formerly known as GST). The rebate reduces the federal part of the HST paid from 5% to approximately 3.5% for homes valued at $350,000 or less. The rebate is gradually reduced for homes valued from $350,000 to the maximum value of $450,000.

SO HOW MUCH WILL HST COST ME AS A BUYER?

As you can see calculating this net HST payable on new homes can be a bit of a pain for buyers (I know it has been for me!). 

Thankfully I recently came across this online calculator put out by the British Columbia Real Estate Association (BCREA) which helps you figure out exactly how much tax you’ll pay net of rebates. See for yourself, click the link below: 

SHELTER TAX CALCULATOR FOR BC

** You’ll see that this calculator accounts for HST, as well as Property Transfer Tax (PTT) which is 1% on the first $200,000 and 2% on the remainder of the purchase price. First Time Homebuyers buying a home under $425,000 are exempt from this PPT. (A partial exemption is available for homes between $425,000-$450,000) 

One of the many reasons to build up density in our beautiful city... 

More (wisely planned) density + better transportation = more efficient use of our land and ressources. Yet another reason I love condo living :) 

We've still got it! For the fifth year in a row, Vancouver tops the list of the world's most liveable cities according to the annual sruvey by the Economist Intelligence Unit. The survey ranks cities based on 30 factors including healthcare, culture and environment, and education and personal safety. 

Read full article here>>

Did you purchase your first home in 2010? As a first time home buyer you could qualify for the Home Buyers’ Tax Credit (HBTC) which entitles you to a tax credit of $750 on your 2010 taxes.
 

1. What is the home buyers' tax credit (HBTC)?

For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009.
 

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2010) by $5,000. For 2010, the credit should be $750.
 

3. Am I eligible for the HBTC?

You will qualify for the HBTC if:

• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
   

4. How will I claim the HBTC?

Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.
 

5. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA)

For complete information on the Home Buyers’ Tax Credit (HBTC) click here>> 

 

The Greater Vancouver housing market remained in balanced market conditions in January, although higher levels of buyer demand were seen in some of the region’s largest communities, namely Richmond and Vancouver West.

“There was a healthy balance between the number of home buyers and sellers in our market in January, but there’s always variation in activity from region to region,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). "We’re seeing strong sellers’ market conditions in areas like Richmond and the west side of Vancouver.”

Here are the stats for January 2011 according to the Real Estate Board of Greater Vancouver (REBGV)

RESIDENTIAL PROPERTY SALES – DOWN 5% from last year

1,819 homes were sold in January 2011. This is represents a 4% decline from December 2010 and a 5% decline from the same month last year. Looking at this from the big picture, it is slightly higher than the 10 year average of 1,790.

HOUSING PRICE INDEX – UP 3% from last year

The MLSLink® Housing Price Index (HPI) benchmark price has come up about 3% on average across the Greater Vancouver region compared to January 2010. However this past year we have seen a lot of variation across different markets. Richmond has been a hotbed of activity and as a result has shown the greatest price appreciation, with prices rising 23% over last January, followed by Vancouver West where the average rose by 12%.

• The benchmark price for detached properties increased 3% from January 2010 to $810,045.
• The benchmark price of an apartment property increased 1% from January 2010 to $390,935.
• The benchmark price of an attached unit increased 3% from January 2010 $495,140.

NEW LISTINGS – DOWN 7% from last year

4,801 properties were newly listed in January 2011. This represents a 7% decline from January 2010 and a 182% increase compared to the 1,699 new listings we saw in December (2010).

At 10,438, the total number of residential property listings on the MLS increased 6% in January compared to last month and increased 2% from this time last year.

SALES OF DETACHED PROPERTIES – UP 13% from last year

793 detached homes sold in January 2011. This is an increase of 13% from last year and a 171% from January 2009.

SALES OF APARTMENT PROPERTIES – DOWN 21% from last year

713 apartment properties sold in January 2011. This is a decline of 21% from January 2010, and a 98% increase compared to January 2009.

SALES OF ATTACHED PROPERTIES – DOWN 4% from last year

There were a total of 313 attached property sales in January 2011. This marks a 4% decrease from January 2010, and a 187% increase from January 2009.

Download the complete REBGV January 2011 Stats Package >>
 

 

Despite the recent run up in prices we’ve seen here in Vancouver over the past several years, which has misled many into thinking they can buy and flip in short periods of time for big profits, real estate should really be thought of as long term investment. And who better to take advice from than someone who’s been in the business for a very long time. Meet George W. Johnson, a 97-year old real estate agent who has been working in the Seattle market for over 74 years!

Johnson’s main piece of advice is “buy a house today if you can, but don’t sell one if you don’t have to”. Real estate is cyclical in its very nature, and Johnson has been witness to many of these booms throughout his 74 year career. The main lesson he says he’s learned though the ups and downs is that after every housing recession the market has “gone higher than the one before”. So the trick is to hold on and weather the storm. This reminds me of some advice I received from a mentor of mine when I was first starting out. He said ‘You’ll never lose money investing in real estate...as long as you’re never forced to sell’ (of course that is assuming you do all your diligence before buying).

Here’s a summary of Johnson’s 4 real-estate tips: 

1) Beware of one-company towns: Cities dependent on a single company or industry are more vulnerable to jarring downturns if the economy goes south.

Luckily Vancouver has a well diversified economy fuelled by several different sectors.

2) Don't get greedy. Johnson blames "plain old greed" for the latest real-estate downturn in the US — people got caught up in the enthusiasm of the moment and banks egged them on with cheap loans.

This particular problem refers to what happened south of the border, and we can thank our conservative lending practices here in Canada for saving us from going down that path. However, greed has been a major factor in the Vancouver condo market. I have seen many condo owners/investors try to unsuccessfully sell their overpriced properties during the height of the market, and then get caught having to sell for much less when the market has cooled off.

3) Timing is everything. "In this market, any young person that hasn't bought a house ought to buy one," Johnson says. "A buyers market doesn't come along that often … you just can hardly help but make money on whatever you buy today at the prices they are." Johnson says rates are only going to go up over the long term, so borrowing will cost more. 

Although I’d say our market here in Vancouver at the moment is more of a ‘balanced market’, and not quite a ‘buyer’s market’, this is a great time for first-time buyers to get into the market. With the record low interest rates we are currently seeing and softening prices, this may be one of the best opportunities for young people to get into the market we’ll see in a very long time. 

4) If you don't have to sell, hang on. Johnson expects that in the US sellers will continue to suffer, at least for now. Buyers, on the other hand, "know it's a buyer’s market – they are going to come in with offers below what we've appraised it at just because they know a lot of people have to sell," he says.

Despite the continued housing-market struggles, Johnson is confident that the latest downtrend is largely over. "We are headed up," he says, "but like I said, I think it is going to be slow. It will take a year or two at least."

Read the full article here >>
 

So what exactly is a condo?....that’s a question that comes up a lot. Condo ownership is fast becoming a popular choice for homeowners here in Vancouver, offering both affordability and lifestyle, yet it is still a concept that is often misunderstood. ‘What is the difference between a condo and an apartment?’ is another great question I often get asked. So I thought I’d put together a little overview to help you get a better understanding about condos and condo ownership here in Vancouver.

The word ‘Condominium’ (or ‘Condo’ for short) refers to a form of legal ownership, as opposed to the style of construction. This form of ownership can apply to high-rise and low-rise residential buildings, townhouses, individual houses, and even bare land. A condo, also commonly referred to as a ‘strata’ here in BC, refers to a special way of subdividing and owning portions of buildings and land. This concept allows multiple individuals to own separate parts of the same building (and/or sometimes land), while sharing common areas and expenses related to those common areas.

The part of the property which an individual owns separately is called a ‘strata lot’ (also referred to as the ‘strata unit’ or ‘condo’), and the remainder of the property is called the ‘common property’

The difference between a condo building and an apartment building is the form of ownership. An apartment building is usually owned by a landlord and the individual units are rented out to various tenants, whereas a condo building follows the form of ownership described above with multiple owners each owning their respective units and jointly owning the common property.

Read more about condos, including ‘what do I own when I buy a condo?’, ‘what is the strata corporation and what is their role?’, and ‘what rules and restrictions should I be aware of?’ >> 

Vancouver ties Auckland for the world's 4th best quality of living according to  Mercer's 2010 Quality of Living Survey.  In first place was Vienna, followed by Zurich and Geneva in 2nd and 3rd positions. 

To those who have set foot here, it comes as no surprise that Vancouver is one of the most livable cities in the world. Breathtaking views, endless recreational opportunities and one of the most diverse populations in North America, are a few of the things that make our city one of the most desirable places in the world to live. 

View the top 50 cities: Quality of Living Ranking >>