There is a lot of controversy about the Harmonized Sales Tax (HST) - approaching in just a few weeks now - at the moment. It looks like it here to stay despite the best efforts of its opponents.
How much of this controversy has been created because of the lack of clarity?
I spent some time researching the effects of the HST on the housing market and truth be told I've come up with this:
It's just not that bad.
Basically after July 1st, you will pay slightly more (1.9% on average) for a new home once the GST and HST rebate are factored in.
The HST rebate will be 71.43 or 5% of the purchase price, the current GST rebate - which will not change - operates on a sliding scale. The balance in this approximate 2% difference will come when the builders, who will no longer be paying PST on their purchases, reflect this in the cost of building homes. I expect that we will see these (significant) savings from home builders.
So. crunch the numbers, and let us know how YOUR home buying decisions may fare. Leave your comments here.
Lorna McGlashan is a sales representative with Century 21 Executives Realty Ltd. in Vernon, BC.