West Vancouver Real Estate

Since the February 2009 BC Budget, the severity of BC’s recessionhas meant $1.2 billion less in personal, corporate and salestax revenues and $826 million more in expenses. The provincenow estimates our deficit at a record $2.8 billion.To help lead the province out of recession, the SeptemberBudget Update, released on September 1, includes spendingcuts and new taxes.Highlights for home buyersHow does the September Budget Update affect home buyers?Home costs rise with the Harmonized Sales Tax (HST)A home buyer planning to buy a new home priced at $600,000,will pay $638,824 because the new HST (the 12 per centharmonized sales tax minus the $20,000 rebate and the twoper cent embedded PST that builders can claim as an input taxcredit).The home buyer will pay the 12 per cent HST on a wide rangeof goods and services from closing costs to real estate commissionsto renovations. (For information see The Open House,August 14, 2009, which includes a feature on the HST).Services declineCuts to capital projects, services and grants will affect the qualityof life in our communities in many ways, for example schoolmaintenance and equipment purchases may be deferred.College or university tuitions will likely rise and students willhave reduced access to student aid, including fewer bursariesand loans.Healthcare costs riseResidents will pay six per cent more for Medical Services Planpremium, which amounts to $6 per month for their family, or$72 per year for the next three years.Programs gone or soon to beReconstruction loan programAs of now, the Reconstruction Loan Program, administered bythe Homeowner Protection Office for owners of leaky condo-miniums built before July 1, 1999 has been discontinued. Forinformation, visit: www.hpo.bc.ca.Your Window to REBGV Government RelationsThe OPEN HouseSeptember 11, 2009 Volume 4 • Number 9September Budget UpdateEnergy efficient rebatesCurrently there are PST exemptions for ENERGY STAR® qual-ified residential heating equipment, windows, doors and sky-lights. These exemptions will disappear when the HST comesinto effect, July 1, 2010, since there are no similar federal rebateprograms.The good newsResidential heating costsResidents will not pay the provincial portion of the 12 per centHST on residential energy, including natural gas, heating oil,electricity or other energy costs for heating, saving seven percent. Residents will pay the federal GST of five per cent. The government is also eliminating the Clean Energy levy nowadded to monthly energy bills.Small business income tax thresholdThe threshold will increase to $500,000 from $400,000 as ofJanuary 1, 2010. This measure is estimated to save small businessin BC $20 million annually. The small business tax will beeliminated by April 1, 2012.Income taxEffective January 1, 2010, the basic personal credit for provincialincome tax increase 17 per cent to $11,000 from $9,373.Residents earning up to $118,000 will have the lowest personalincome tax in Canada.JobsDuring the next three years, the government will build roads,highways, bridges, healthcare facilities and other infrastructurein a $14 billion program with the federal and local governments,expected to create 88,000 much needed jobs. Since February2009, 480 projects worth $3.4 billion have been announced,creating 21,600 jobs.Health careIf your client becomes ill with the H1N1 flu, there are resources. The government will spend $80 million in 2009 alone for H1N1flu preparation. It will also spend $641 million for the MedicalServices Plan to fund and retain new physicians and specialistsand lab services. And there will be Medical Service Planpremium assistance for lower income individuals and families,saving, for example, a low-income couple $460.80 per year.