BC HST is Only Payable on BRAND NEW PROPERTIES!
BC HST and Vancouver Real Estate
There are A LOT of misconceptions about British Columbia’s Harmonized Goods and Services Tax and Vancouver Real Estate. The one I hear most is that HST will payable on all real estate transactions in BC. This is not true! HST in BC will ONLY BE PAYABLE ON BRAND NEW PROPERTIES! These are properties that have never been registered at the Land Titles Office or have never been transferred out of the ownership of the developer/builder.
Quick Facts on BC’s HST
- BC’s HST comes into effect on July 1, 2010 and is 12%.
- Only payable on BRAND NEW PROPERTIES!
- Will be payable on Pre-sales and Assignments that Complete after July 1, 2010.
- HST is not payable on Re-Sale Properties!
- There are HST Rebates for properties under $525K
What does this mean for the Vancouver Real Estate Market?
Brand new properties will get a lot more expensive and may be less attractive compared to re-sale properties. Will it be the end of the world? No. Will it be good for the sellers of re-sale Vancouver real estate? Most likely.