Province Increases New Housing Rebate Threshold

November 26, 2009 — Eric

Below is a news release from the provincial government talking about increased new housing rebate threshold and also transitional rules. The HST is now exempt from houses that are less than $525,000.00 which is a big deal..

…if you’re up in 100 Mile House or something. But seriously, for the majority of the population in the GVRD, this is only lot value!

VICTORIA – The Province is proposing to increase the threshold for the B.C. HST new housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization, Finance Minister Colin Hansen announced today.

“We heard the concerns from consumers and industry about how the HST might affect home buyers, and this increase will move the threshold to above the average new home price in the province. At $26,250, this provides the highest maximum provincial rebate in Canada,” said Hansen. “A similar rebate will also support the construction or substantial renovation of affordable rental housing.”

Purchasers of new homes would be eligible for a rebate of 71.43 per cent of the provincial portion of the HST paid on a new home, up to a maximum of $26,250. Homes above $525,000 would receive a flat rebate of $26,250. This enhanced rebate represents a 30 per cent increase in the threshold and maximum rebate available.

The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010. In addition, sales of new homes under written agreements of purchase and sale entered into on or before Nov. 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.

On July 1, 2010, British Columbia intends to adopt the HST, combining a seven per cent B.C. rate with the five per cent federal Goods and Services Tax. At 12 per cent, B.C. would have the lowest HST rate in Canada. It is estimated the HST would remove over $2 billion in costs for B.C. businesses, including an estimated $1.9 billion of sales tax removed from business inputs and an estimated $150 million annually in compliance costs.

For more information on the proposed transitional rules for new housing, visit www.gov.bc.ca/hst.

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BACKGROUNDER

THE ENHANCED NEW HOUSING REBATE, NEW RENTAL HOUSING REBATE AND TRANSITIONAL RULES FOR NEW RESIDENTIAL REAL PROPERTY

The Province is proposing an enhancement to the new housing rebate that was announced on July 23, 2009, and is proposing an enhancement to the new rental housing rebate. The Province is also proposing transitional rules for residential real property to provide information on the tax treatment of transactions that straddle the July 1, 2010 implementation date. The enhancement to the rebates and the transitional rules are described in more detail in the Tax Information Notice—Residential Housing: New Housing Rebates and Transitional Rules for British Columbia HST—HST Notice # 3.

Enhanced New Housing Rebate

The new housing rebate would be enhanced so that new homes purchased as a primary residence would receive a rebate of 71.43 per cent of the provincial component of the HST, paid up to a maximum of $26,250.

As a result of the decision to enhance this proposed rebate, purchasers of homes priced up to $525,000 would pay no more tax, on average, than under the current PST. Homes above $525,000 would receive a flat rebate of $26,250. This enhanced rebate represents a 30 per cent increase in the threshold and maximum rebate available.

Enhanced New Rental Housing Rebate

To support the construction or substantial renovation of affordable rental housing in B.C., the Province is proposing to provide an enhanced rebate for new rental housing, similar to the enhanced rebate for new homes.

The proposed rebate would be available for new rental housing, including investment properties to be rented out, for use as primary places of residence. This rebate would apply across all price ranges up to a maximum rebate of $26,250. Similar to the B.C. enhanced new housing rebate, the enhancement of the new rental housing rebate would ensure that, on average, new rental housing up to $525,000 would not be subject to any more tax due to harmonization than is currently embedded as PST in the price of new rental housing.

Transitional Rules for Residential Real Property

To help homebuyers and builders transition to the HST, transitional rules would be provided for new housing transactions that straddle the HST implementation date of July 1, 2010.

Generally, builders’ sales of newly constructed or substantially renovated homes would be subject to the provincial component of the HST where both ownership and possession of the home are transferred after June 2010. Grandparenting would be provided for certain contracts.

The proposed transitional rules for new housing, including builder reporting and disclosure requirements, would be administered by the CRA.

Grandparenting

Generally, sales of new homes under written agreements of purchase and sale entered into on or before Nov. 18, 2009, would be grandparented, such that these sales would not be subject to the provincial component of the HST and would not be eligible for B.C.’s housing rebates.

Grandparenting would be provided for newly constructed or substantially renovated single unit homes, including detached homes, semi-detached homes, and attached homes.

Grandparenting would not apply to traditional apartment buildings, mobile homes (including modular homes) and floating homes, as the general transitional rules would apply differently to those homes. However, these homes may qualify for B.C. housing rebates.

Transitional Tax Adjustment

Builders would be able to recover the provincial component of the HST payable on most purchases, as under the federal GST, with limited exceptions. However, builders of grandparented homes would generally be required to pay an amount—a transitional tax adjustment—based on the home construction or substantial renovation completed as of July 1, 2010. The transitional tax adjustment for grandparented homes is intended to approximate the amount of PST—approximately two per cent—that would have been embedded in the price of the home, on average, under the current PST regime.

PST Transitional Housing Rebate

Newly constructed or substantially renovated homes completed in full or in part prior to July 1, 2010, would have PST embedded in the price of the home, since building materials used in the construction of the homes are subject to PST. For non-grandparented homes that are subject to the provincial component of the HST after June 2010 and for grandparented condominiums, a PST transitional housing rebate would be available to provide relief in respect of the PST embedded in the home.

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How much is Vancouver’s most expensive property?

November 21, 2009 — Eric

Any guesses?

SUN1112N-House3

Try $31 Million. Yup, that’s a capital M. In the affluent area of West Point Grey with un-paralleled view of Georgia Strait.

Read the full story here from Vancouver Sun.

Posted in VictorEric. No Comments »

Vancouver Hot Market fueled by HST and New Immigration Investment

November 14, 2009 — Eric

I had written an article a few months back about how the HST is driving the market. In the last couple of months, I have also noticed a lot more investment from foreign or new immigrants, specifically from Mainland China investors. For example, 9 out of 10 of our recent projects are for Chinese clients. They are predominately building in the westside neighbourhoods of Arbutus, Dunbar, and Kerrisdale. In talking with a lot of realtors, they are stating that it’s near impossible to find a building lot in these areas.

This article below from the Vancouver Observer has real estate numbers pointing to the same phenomenon.

(original article can be seen here.)

Vancouver Real Estate Market Booms Fueled by First-Time Buyers

by Sebastian Albrecht

October 2009 ended up being another stellar month in Vancouver real estate. We’ve been spoiled this year and grown accustomed to seeing strong results month after month. October 2009 was a month of steady demand and shrinking supply which resulted upward pressure on prices.

So far, there are no signs of the Vancouver real estate market slowing down. If anything, October looked better in many ways than September. History tells us that we should expect this to change as the holiday season is approaching and this is typically a slower period. I expect that we will see a seasonal pullback in sales beginning this month and leading us into December.

Our market continues to be driven by first-time buyers, pent-up demand and low interest rates. The majority of first-time buyers that held off their purchase through the downturn, have bought. The same is true withother categories of buyers that constituted the pent-up demand. As the economy improves and signs of strength return to the economy, we should also begin to see upward pressure on interest rates.

For these reasons I think that we will not see real estate values in Vancouver continue to skyrocket. During the middle of 2009 there was significant and rapid price appreciation in Vancouver. Prices will still increase, but I think that  they will do so at a more modest pace heading into 2010.

The official line

“While home prices have been rising in 2009, they have not eclipsed the peaks reached in early 2008,” Scott Russell, Real Estate Board of Greater Vancouver (REBGV) president said. “We’re coming off several months of unseasonably high sales levels, which has allowed for a gradual increase in home values this year,”

“High confidence and low mortgage rates are continuing to drive the activity we’re seeing in the housing market today,” Russell said.

The numbers

For the fourth time in the last seven months we had an increase in Sales (+6.09%) from 1166 to 1237. Unsurprisingly, this was a huge 205% increase over the 405 Sales in October 2008. The majority of the strength in Sales came on the Westside where they increase 10% month over month versus a slight decline of <1% on the Eastside.

New Listings fell (-10.05%) to 1709 from 1900 (month to month). This was the third time in the last four months that they fell. Year over year, there was an increase (+6.75%) to 1709 from 1601. The decline in New Listings was strongest on the Eastside (-17.07%) vs the Westside (-6.35%).

After seeing recent rises in both the Months of Supply and Active Listings numbers, October saw both of these fall. Active Listings fell very slightly (-0.72%) to 3331 from 3355. Meanwhile the Months of Supply dropped (-5.88%) to 2.67 from 2.84.

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Vegetable Garden in a Roll-out Mat Format

November 12, 2009 — Eric

Are you one of those who have wanted to plant your own vegetable garden but just don’t have the time or know how to do it? Well, now Chris Chapman has made it so you have no excuse. He’s designed this no-brainer Roll-out mat complete with different seeds for different seasons.

Roll-out-veg-mat

Roll-out-Veg-mat-with-handle

Read below for instructions on how to grow your own super easy garden. The original article can be seen here.

Whether you’re a seasoned gardener or just getting started, sometimes the hardest part is that first shovel-full of dirt at the beginning of the growing season. Getting outside and preparing the soil for the next planting can feel like one part you’d rather just skip and go straight to looking out at all those seedlings busting up through the dirt.

Chris Chapman designed roll-out vegetable mats, each designed for different growing seasons. The mat is made from corrugated cardboard with embedded seed pouches and fertilizers. The idea is that as the cardboard breaks down, the seeds are able to germinate and take root; meanwhile, you put in the least work possible.

While it’s a bit late in the year to try this for fall veggies, it’s the perfect time to prepare your own garden roll now so that this coming spring, sewing seeds is a snap. These roll-out mats are common for flower gardens, and there’s no reason why you can’t create your perfect organic herb and vegetable garden ahead of time in the same way.

Creating Your Own Roll-Out Garden Mat


Step 1 – Decide what vegetables and herbs you’d like to grow during spring, summer and fall. This way you can have your mats at the ready each time you need to sew seeds for that growing period. The best choices for what to grow is whatever you eat most during the year. If you’ve saved seeds from last year’s garden, you won’t even need to hit the garden shop before getting started!

Step 2 – Check on germination rates and companion gardening suggestions. This will help you figure out which seeds should go together in which mats. For instance, lettuces or radishes have very short growing times, whereas broccoli or tomatoes have much longer stretches of time before they can be harvested. Additionally, there’s the size factor. It’s not a good idea to put lettuce seeds on the same mat as tomato seeds, since the growing tomato plants will steal all the sun from lettuce seedlings. Finally, check into companion gardening. This is when you put plants together that have complimentary needs. Often companion gardening can eliminate the need for any organic fertilizers and natural pesticides you might otherwise need to use. Getting this information together and planning out your mats with these things in mind will maximize the ease of care and yield of your garden.

Step 3 – Create your mats. This can be done in a few ways. While Chapman’s design is clever, putting seeds in pouches doesn’t work since each seed needs to be spaced out. There are simple ways to make your own seed mats that will remedy this. For instance, you can gather up a roll of heavy duty brown paper towels, flour, and your seeds. Make a thick paste with flour and water, and spread it over the unrolled paper towel torn to whatever length you’d like. Then place the seeds in the paste at the distance recommended on the seed pouches. Let the towel dry completely, roll it up, label it, and stash it until it’s time to use it in your garden.

Step 4 – Grow your garden. When it comes time to grow the seed mat you’ve created, simply loosen a sunny patch of soil in your yard, unroll your mat, cover it with compost to the depth appropriate for whichever seeds you’re planting, water, and voila! You’re done planting your garden in minutes.

A successful garden will still require quite a bit of care, but planting sure couldn’t be much easier or carefree than this! A little late fall and winter preparation will save you tons of time during the rush of growing season.

Posted in Cool Products, Eco-Design. No Comments »

Tel Aviv Top Eco-design Studio Mesila is on the Right Track

November 9, 2009 — Eric

I’m not one to waste, so when I read Mesila Studio’s eco-green design mindset of “instead of producing an infinite number of objects, we suggest to give objects an infinite life”, I knew I had to share their ideas on our blog.

The houseware products that they have been able to make from everyday ordinary stuff like clothespins, buttons, and plywood scrape is amazing and must be seen!

Please visit the article on their design here.

You can also check out their website here.

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Upcoming Solar Hot Water Pilot for New Homes

November 3, 2009 — Danson

(by Rachel Moscovich, rachel.moscovich@vancouver.ca)

Are you building a new home in 2010? Are you interested in installing a solar hot water system on a new house next year? The City of Vancouver is initiating a pilot program early 2010. We will provide approximately 50% of the value of a solar hot water system (up to $6000 system value) in incentive funding to support local uptake of this renewable technology. Program participants will see their solar homes featured on our Green Buildings website.

Would you consider participating in this program? If so, how many houses/solar installations would you expect to begin in 2010?

We appreciate any comments or feedback.

Posted in Eco-Design. No Comments »
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