Wednesday, February 29, 2012

HST to PST What Does It Mean For Chilliwack BC Real Estate

The BC provincial government has announced that by April 1, 2013 (April Fool's Day - are they being ironic?) the Harmonized Sales Tax (HST) will be replaced by the federal Goods and Services Tax (GST) and the Provincial Sales Tax (PST).  So there is a year and bit before it all gets resolved.  In the meantime, the BC Ministry of Finance and the federal Ministry of Finance in an announcement on February 17, 2012 have laid out a number of transitional rule changes that are very important if you are considering the purchase of newly built BC residential real estate.  It is important to note the HST does not apply to the sale of resale homes.

The following document links shall help your understanding with these somewhat complicated transitional tax changes, but, when in doubt, talk to your accountant or lawyer.

BC Ministry of Finance HST notice #12

Federal Department of Finance notice “Transitional Rules Relating to the Elimination of HST in British Columbia”:

Canada Revenue Agency

How will Chilliwack Real Estate be affected?

A search of new Chilliwack* residential housing above the $850,000 threshold for those real estate properties that would be unable to receive the full rebate effective after April 1, 2012 showed that there are no, zero, zilch, new properties for sale above $850,000 as of this date in the Chilliwack* area.

What my search did show was, once again, in this the most affordable part of the Fraser Valley reasonable pricing. The Chilliwack* area "median price" for new detached housing being $389,900, the low $229,900 and the high $688,888.  Something for everyone and brand spanking new as well!

Imagine living here....

Stephen Mullock RI
is an award winning full-time real estate specialist with 30 years of experience and hundreds of sales. Thinking of buying or selling real estate in the Fraser Cheam communities of Chilliwack, Agassiz or Harrison Hot Springs? Contact Steve (click here) of Royal LePage Wheeler Cheam Realty for experience, local knowledge and friendly service you’ll be happy you did.

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