1) Home Buyers’ Tax Credit – A person who has not owned a home in the preceding 4 years can claim $5,000 on line 369 of the personal income tax form. This is a non-refundable tax credit – meaning that you can use this to reduce your tax, but will not receive a cash refund from it. This tax credit can be split between two or more eligible parties. The amount of the rebate depends on the tax bracket, but is generally $750. The property must be located within Canada and includes any sort of dwelling, but does not apply to lot purchases. You must move into the property within 1 year of purchase to be eligible.

2) Home Buyers Plan – A great way to save for your down payment is to do it through the Home Buyers Plan (“HBP”). The HBP allows you to withdraw your Registered Retirement Savings Plan (“RRSP”) balance, without penalty, for your down payment. The HBP requires that you “pay it back” over 15 years. This means you must make a contribution to your RRSP of 1/15th of the amount withdrawn yearly. If you do not make these contributions, then 1/15th is added to your income for that given year.

REQUEST TO REDUCE TAX DEDUCTIONS AT SOURCE (T1213) – This form can be used in conjunction with RRSP contributions to reduce the amount your employer is required to withhold from your earnings. By utilizing this form, you can build your downpayment through your RRSP while not missing a lot of money from your monthly paycheque.

While your home is on the market for sale, do not use your garage to store packing boxes, they belong in a storage area.

Items that need to be in the garage, like your children’s bicycles, need to be out of the way and neatly stored in a rack or hung from hooks.

Make sure any exposed electrical wiring is ‘to code’ and secured.

Clean the windows, many times garage windows are missed.

Do not store gasoline powered mowers etc. or gasoline in cans in the garage.

Make sure the garage ‘smells good’, this only takes a few air freshener’s.

Remove any temporary shelving and any permanent shelving that is of poor quality.

Get rid of ‘old’ work benches (they also belong in the storage if you are taking them with you.

Does the inside of your garage need a new coat of paint?

Are all the light’s working?

Your garage should be appealing to allow your buyers to be creative!

A second issue that I did not expect to come out is that home insurance costs rise significantly with this type of piping.  The insurance agent we consulted for information stated that due to the higher risk associated with polybutylene piping, the home insurance could be as much as twice the cost.

That being said, there are homes of this age that have had the polybutylene piping replaced.  The Buyers I was dealing with decided not to purchase this home.  If you are considering a home with this type of piping, be sure to conduct your own investigation and be aware of the risks involved and then decide whether or not you are comfortable buying the home.

To discuss any of these in more detail, please contact me at 604-837-2983.

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Agents are bound by law in British Columbia to put their client’s interests above all other interests, including their own personal interests. What does this mean to you? This means that your Buyer’s agent is working hard to get your property for you at the best price possible. We do this by being knowledgable in the area you wish to live in, and by producing a Comparative Market Evaluation which utilizes the local market to determine the price.

Agents are also bound to follow the lawful instructions of their client. If you wish to make an offer that is way below market value, then your agent is bound to follow your directions. However a professonal agent will advise that such an offer is unlikely to be successful. Conversely an agent cannot follow any instructions that break any laws.

Agents are also under law required to keep the confidences of thier clients, and to disclose all information that they have to thier clients. In translation, your agent cannot disclose any information about you to anyone. However if they are at an open house and the seller tells them information that could be relevant to your purchase, your agent must tell you.

1.  Home Inspection.  While this is technically an optional expense, it is very unwise to forego the home inspection.  With the home inspection, not only do you get peace of mind that the house is sound, but also another layer of liability insurance protection in case there is something that is undetected. 

2.  Moving costs.  Who is going to move your things to your new home?  What costs are associated with the move? 

3.  Solicitors Fees.  When purchasing property in British Columbia with borrowed funds you are required to use a lawyer or notary public to process the transaction.  Even if you are not using borrowed funds to purchase the property it is advisable to use a solicitor.  There are many steps to a successful transfer of ownership and many things that can crop up even years later if it is not done correctly.  Solicitor’s fees vary greatly and I always recommend my clients get 3 or more quotes on this service.

4. Property Transfer Tax.  There is a tax charged by the BC Government of 1% of the first $200,000 and 2% of the balance of the purchase price.  There are some exceptions to this tax. 

5.  Title Insurance.  More and more often in British Columbia lenders are requiring title insurance.  A quote for this insurance should be discussed with the solicitor’s office when you are getting their quote.

6. HST.  If you are buying a newly constructed home from a builder, make sure the contract is clear on whether or not the HST is included.  Any ambiguity in the contract could cost you a lot of money.  Also some builders will not credit a government rebate to the purchaser at closing.  This means that you may have to pay the full HST and apply for a rebate after the fact.  This rebate amount could be thousands of dollars, so clarity is key.

7.  Appliances.  If it is a new home, appliances may not be included.

8.  Home insurance.  If you are purchasing a detached home, the lender will require that you have adequate home insurance.  The mortgage funds will not be advanced without it.

These are some of the items that can cause you great stress if not addressed before purchasing your home.

To discuss any of these in more detail, please contact me at 604-837-2983.

Click here to search Properties in Surrey.

This can be an issue for a Buyer who is buying a home built within 10 years  and expecting the balance of a New Home Warranty.  If you are buying from an owner/builder, then your Realtor must do the legwork to confirm whether or not the warranty is in place.  Also if someone has owner/builder status, they are not legally allowed to even sell the property until the 18 months past occupancy permit.  To attempt to buy a property that is not saleable could cost you valuable time and money in your property search.

If you have any questions about the information in this post, please call Melissa at 604-837-2983.

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I enjoy working with people long before their home purchase. As part of my Buyer‘s Service Package I meet with the clients to determine what their real estate needs are. I also refer my clients to a mortgage broker as soon as possible to get their credit score and options. If the clients are not eligible to purchase property right away, the mortgage broker will give them a plan to follow to get to where they want to be. My role in this part is that of conscience – I periodically contact the clients to give them a third party to be accountable to and to remind them to stay on track.

If this sounds like a service that you would like to get (at no cost!), give me a call at 604-837-2983.

Melissa

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(Surrey, BC) – The Fraser Valley Real Estate Board processed 1,322 sales on the Multiple Listing Service® (MLS®) in July, an increase of 20 per cent compared to the 1,101 sales during the same month last year, however 17 per cent fewer than the 1,588 sales in June.
While sales decreased month-over-month, listings went up. The board posted 2,931 new properties on its MLS® in July – 6 per cent more than received in June and 24.5 per cent more than in July 2010 – pushing overall inventory to 10,073 active listings, the highest level in the Fraser Valley since last summer.
Sukh Sidhu, president of the Fraser Valley Real Estate Board, says, “Last month, we were busier listing rather than selling properties, which is good news for prospective buyers. A buyers’ market means REALTORS® will have more homes to show their clients and increased negotiating power on their behalf.
“For sellers in this market, expert guidance to determine your home’s list price is essential. Overall, we’re seeing home prices remain strong compared to a year ago, but not for every property type or every community. We’re still seeing tremendous regional variation in prices – some areas showing increases; others decreases – as well as local differences in the average number of days on the market.”
For example, in July, it took on average 18 days to sell a townhome in North Delta; 45 days on average to sell a single family home in White Rock/South Surrey; and, 65 days on average to sell an apartment in Abbotsford.
The benchmark price of a single family detached house in the Fraser Valley in July was $534,042, an increase of 4.6 per cent compared to $510,470 in July 2010.
For townhouses, the benchmark price in July was $328,318, an increase of 0.8 per cent compared to $325,856 during the same month last year. The benchmark price of apartments in Fraser Valley in July was $248,043, an increase of 1.5 per cent compared to $244,368 in July 2010.
Information and photos of all Fraser Valley Real Estate Board listings can be found on the national, public web site www.REALTOR.ca. Further market statistics can be found on the Board’s web page at www.fvreb.bc.ca. The Fraser Valley Real Estate Board is an association of 2,920 real estate professionals who live and work in the communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission.

If the HST is approved by the referendum, then the Provincial Government has promised to reduce the Provincial portion by 2% in two steps. This would make a big difference in the price of a Newly Constructed Home that does not qualify for the rebate.

However the reduction will not be completely in place for 3 years. This means you may save 2% in tax, but property values could have increased significantly which also affects your purchase price.

To discuss in more detail, please call Melissa at 604-837-2983