Rutland, Kelowna, BC - Blog

Proposed new HST Transition Rules should boost new Okanagan home sales!

bo.skapski@century21.ca — Tue, 21 Feb 2012 00:00:00 GMT

The BC Government has announced new Transition Rules for HST applicable to new home purchases in BC. As they apply to the Okanagan, the two most important considerations are as follows:

BCT HST credit on new homes of 5% previously applied only to homes priced up to $525,000. It will now apply to all new homes priced up to $850,000, at which point the credit will cap at $42,500 and apply to homes above that price threshold.

MORE IMPORTANTLY: Previously the HST tax credit only applied to homes purchased as a primary residence. The new rules will apply to secondary home purchases as well. This will effectively reduce the price of a $850,000 home by $42,500 for purchasers buying a second home in the Okanagan.

There are additionsl rules for homes started before April 1, 2013, but completed after that date. A summary fo the proposed changes is below. The information below has not yet become law so there may be some changes.

HST Transition Rules for Housing

Posted on February 17, 2012

The Province announced the HST Transition rules on February 17, 2012 as the Province transitions back to the PST/ GST system on April 1, 2013.

Used Residential Homes (most resales) are, and remain, exempt from HST.

1. Under the current system, there is no additional rebate for new homes greater than $525,000 – Effective April 1, 2012, for homes completing prior to April 1, 2013, this rebate threshold has been increased to $850,000, meaning that the maximum rebate available (for homes worth 850k) is $42,500. This provincial portion HST rebate will also be available to secondary or vacation residences located outside the lower mainland.

Effective HST on Homes (Primary Residence) - April 1 2012 to April 1 2013

Purchase Price	Gross HST (12%)	Rebate Available	NET Purchase Price
$100,000.00	$12,000.00	$6,800.00	$105,200.00
$150,000.00	$18,000.00	$10,200.00	$157,800.00
$200,000.00	$24,000.00	$13,600.00	$210,400.00
$250,000.00	$30,000.00	$17,000.00	$263,000.00
$300,000.00	$36,000.00	$20,400.00	$315,600.00
$350,000.00	$42,000.00	$23,800.00	$368,200.00
$400,000.00	$48,000.00	$23,150.00	$424,850.00
$450,000.00	$54,000.00	$22,500.00	$481,500.00
$500,000.00	$60,000.00	$25,000.00	$535,000.00
$550,000.00	$66,000.00	$27,500.00	$588,500.00
$600,000.00	$72,000.00	$30,000.00	$642,000.00
$650,000.00	$78,000.00	$32,500.00	$695,500.00
$700,000.00	$84,000.00	$35,000.00	$749,000.00
$750,000.00	$90,000.00	$37,500.00	$802,500.00
$800,000.00	$96,000.00	$40,000.00	$856,000.00
$850,000.00	$102,000.00	$42,500.00	$909,500.00
$900,000.00	$108,000.00	$42,500.00	$965,500.00
$950,000.00	$114,000.00	$42,500.00	$1,021,500.00
$1,000,000.00	$120,000.00	$42,500.00	$1,077,500.00

2. For new homes where construction begins before April 1, 2013, BUT where possession transfers after April 1, 2013, neither HST nor PST will be payable, but rather purchasers will pay a temporary, transitional provincial tax of 2% per cent on the full house price in addition to the GST payable.

3. Special Transition Tax Rebates will be available to real estate developers and home builders who commence a home prior to April 1, 2013 but where it is sold after April 1, 2013 to prevent double taxation based on the extent of completion on April 1, 2013.

% complete April 1, 2013	Transition Tax Rebate to Builder	Rebate (Ex: 500k Home)	TTax Paid by Home Buyer (500k home)
N/A$010000
10-25%	1.50%	7500	10000
25%-50%	1.00%	5000	10000
50%-75%	0.50%	2500	10000
75%-90%	0.20%	1000	10000
>90%	0.00%	0	10000

Check out the Completed Houghton Road Multi use Corridor

grant.wiebe@century21.ca — Thu, 02 Feb 2012 00:00:00 GMT

Excerpt from http://Rutlanders.ca

Check out the Completed Houghton Road Multi use Corridor

The Houghton Road Multi-use Corridor project near Ben Lee Park in Rutland is nearly complete and the finished product is very impressive. Vist the new recreation corridor between Hollywood Road and Lester Road and watch for future phases!

Check out a previous post about this project at http://rutlanders.ca/2010/08/09/houghton-road-multi-use-corridor-construction/

Home Buyers Guide To Understanding The Foreclosure And Court Ordered Sale Process In Kelowna British Columbia

jason.neumann@century21.ca — Thu, 15 Sep 2011 00:00:00 GMT

Foreclosure: A foreclosure is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a termination of a mortgagor's equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure).

Court Ordered Sale: A Court Ordered Sale is the legal process where the BC Provincial Court is petitioned to approve the sale of an Offer To Purchase of a property once a buyer has removed all conditions precedent.

So how exactly does a home owner find themselves entering into the Foreclosure process to begin with?

Here are the steps of a Foreclosure action in BC:

1. Default of Mortgage Payments (typically 2-3 months behind)

2. Demand for Payment by Lender

3. Filing of Petition for Foreclosure

4. Order Nisi (Final Order, usually with a Redemption Period* (6 months or less)

5. After Redemption Period expires, either:

5a. Order for Conduct of Sale (subject to court approval), or

5b. Order Absolute of Foreclosure (no court approval required)

*Redemption Period means the ability to “redeem” the mortgage by paying the full amount outstanding, plus interest, costs and taxes.

Where a Lender has obtained an "Order for Conduct of Sale" the Lender's Realtor ® is required to attach a Schedule "A" (this document modifies the Offer to Purchase which protects the Lender's interests) to any proposed Contract of Purchase and Sale which generally states the following terms and conditions:

1. Court Approval of the Offer is required after Condition Removals

2. The Court has complete and full discretion, the Lender will not advocate for the Buyer

3. Other offers may be entertained

4. Title transfer is by Vesting Order of Court

5. The Lender makes no Representations or Warranties as to: Title, Condition of Premises, Environmental Condition (otherwise known as “as-is-where-is condition)

Okay, now you have asked your Realtor ® to show you some foreclosure properties and you find one that is of interest. You decide that you want to place an offer on it and now court procedures must be considered. So here’s how it works: First your offer is submitted to the listing agent who in turn forwards it on to the lawyer representing the lender for their consideration. Once the lawyer and the lender have reviewed your offer (allow 48 hours for an initial response) and all conditions/terms are agreed upon by all parties you may then proceed with your due diligence period (approximately 7-10 days including Home Inspection, Finances, Title Search etc.) If you are satisfied and remove all your conditions the Lender's lawyer will then apply to the local BC Provincial Court for a court date to be set.

The court date traditionally ends up being 10-14 days after the initial application takes place. It is also important to know that once the court date is set the accepted offer becomes public knowledge and anyone may go the Court Registery to see what the accepted offer amount is, completion date, etc.

Once the court date arrives your Realtor ® will be there to represent your offer and it highly recommended that you be present as well. The reason you want to be present is in case other competing offers come into play. You will not know the interest level in the home until the court date. Let’s say for instance, there are three additional offers that are presented before the judge there is a possibility of the judge sending all interested parties away with instructions to come back with your best price. Essentially, this creates a kind of auction type atmosphere and drives the purchase price higher to benefit the Lender. Keep in mind that the judge's mandate is to recover as much of the Lender's monies as possible and it is at his/her sole discretion on how they go about doing so.

Common foreclosure questions:

1) The list price is not firm by any means, they are set by the Lender and are reduced over time until the property sells. You are able to offer whatever price you want, it doesn't mean that the Lender and ultimately the Courts will accept and approve it. Ideally, you want to offer something that the judge will feel is in line with market value based upon a recent appraisal of the property. There is some strategy to placing an offer and if done correctly it can result in a very good buy for the purchaser!

2) As I mentioned above the judge really has the final say as to whether or not to approve your Offer to Purchase. The amount left owing on the mortgage may be well above or below the current market value of the home. The judge will want to recover as much money on behalf of the lender/creditors as possible. It is important to learn as much about the foreclosed property prior to making an offer on it in order to give you the best chance of having your offer approved!

3) In order to learn more about a particular foreclosure property prior to making an offer is where your Realtor ® comes in. They will be able to provide you a Title Search, Tax Assessment, and give you comparables of recent sales in order to give you a well rounded view of the current market value of the home. You then can take all this information and sit down and discuss the best strategy to get you the home at a price you are happy with.

One more thing, it is very important to be aware that the mortgagor has the right to redeem their home by paying all the mortgage arrears, court costs, taxes and any other costs related to the foreclosure process that the Lender has incurred right up until the day of court. Bottom line is to be aware of all the risks involved in the purchase of Court Ordered Sale prior to placing an Offer to Purchase. Your Realtor ® is always there to help!

Sincerely,

Jason Neunann

Inexpensive things you can do to make a great first impression on buyers

amanda.westrheim@century21.ca — Wed, 14 Sep 2011 00:00:00 GMT

Fall is always a busy time for buyers and sellers. If you’re looking to sell your home this fall, here are some inexpensive things you can do to make a great first impression on buyers:

Get rid of the clutter! Cleaning and de-cluttering always rank near the top of suggested home improvements for sellers. Start sorting your belongings and get rid of what you don’t need—or box it up and put it in storage. If it looks like your home can’t accommodate your belongings, buyers will believe it can’t accommodate theirs, either!
Rearrange your furniture to create easy walkways. Remove excess furniture to make rooms seems larger and more user friendly.
Remove photos. They personalize your space, but they may also make it more difficult for potential buyers to visualize themselves living in your home.
Make the space smell nice! Open windows, use air fresheners or bake cookies before showings.
Make sure everything is clean—floors, bathrooms, kitchen. Nothing turns off a buyer faster than grime.
Consider paint. Paint is an inexpensive way to freshen up both the interior and exterior of a home. Try to keep colors neutral.
Don’t forget curb appeal. Lawns should be cut, hedges should be trimmed and beds should be free of weeds. Plant some flowers to brighten the exterior and give it a warm feeling.
Start packing up clothes and linens to make closets look larger.
Open blinds and curtains to allow lots of natural light in, and turn on lights when buyers are expected.
Don’t forget the garage, it’s part of your home! Get rid of clutter and organize your tools, bikes, etc.

Interested in selling your home or learning more about staging? Give me a call today.

10 easy ways to green your home

10 easy ways to green your home

Replace your old appliances with Energy Star-labelled ones.
Turn down the thermostats during colder months and keep cozy with a sweater.
Use a low-flow toilet and turn off the tap when brushing your teeth.
Use simple ingredients for cleaning such as plain soap, water, baking soda (sodium bicarbonate), vinegar, washing soda (sodium carbonate) and lemon juice.
Change old bulbs to Compact Fluorescent ones. CFLs bulbs use 66% less energy than a standard incandescent bulb and last up to 10 times longer.
Buy unbleached paper towels and toilet paper.
Use your own reusable carrying bags when grocery shopping.
Bamboo is considered an environmentally friendly flooring material due to its high yield and the relatively fast rate at which it replenishes itself. Try beautiful bamboo floors instead of hardwood.
Use your compost and recycling box
Use zero- or low-VOC paint, made by most major paint manufacturers today.

Remember – A little bit of extra effort goes a long way to helping our environment. Do your part today and every day! For more information on tips like these, contact Amanda Westrheim 1-888-301-2121