How will the BC HST affect Your Victoria or Sooke Real Estate Purchase?
Cross-posted from 642Blog.ca - Sooke's only Community and Real Estate Blog
As of July 1st, 2010, the 5% GST and 7% BC PST will be replaced by a 12% Harmonized Sales Tax. How does this affect buyers of housing in British Columbia?
HST will only apply on new housing. Just like today with the GST, HST will not be applicable on previously-occupied, resale houses. I get this question all the time. Unless you’re buying a new home, or one that has been substantially renovated such that it is as-new, you will not pay HST on the sale.
Below is a table which outlines the current GST burden on new housing and the proposed HST burden on new housing after July 1, 2010. Keep in mind that often for properties priced under $450,000-$500,000 the builder includes the GST in the purchase price, and the new housing rebate is assigned to the builder. For example, it would be rare to purchase a $275,000 condo and pay GST on top, but it would not be uncommon to buy a $600,000 home and then have to pay the GST in addition to the purchase price.
