GST cut in 2008 is good news for home buyers
Joe Crawford
New homes closing in January will save 1% tax under new Federal
budget
The conservative government's recent economic update issued on October
30 left a lot of Canadians smiling. And why not? With government
revenues now running higher than expected as the economy booms, the
Tories have pledged retroactive income tax cuts, 'bold' corporate tax
reductions, lowering the GST to 5% as of January 1, 2008, and still
having enough surplus left over after the tax cuts to pay down the
national debt by another $10 billion this year. And while this is
good news all around, it's particularly so for Canadian home
buyers.
The tax changes outlined in the federal government's economic
statement will make it easier for Canadians to realize their dream of
home ownership in a number of ways. Lower income tax means more
disposable income to devote to a home purchase, and the one per cent
cut in the GST will provide savings to new home buyers closing their
sale after January 1st. According to an example provided by the
Canadian Real Estate Association (CREA), using the sliding GST scale
that applies to the cost of new homes, a buyer of a $375,000 house in
British Columbia would save $2,738.
Even if you're buying a resale home that is not subject to the GST,
the planned one per cent tax reduction will also help Canadians pay
for home renovations, or in the purchase of appliances or furniture.
According to research conducted by CREA, Canadians spend an average of
$7,475 on renovations when they buy a home, and spend another $3,950
on furniture and appliances. The GST cut represents $114 in savings
based on these averages.
Not sure how much home you can afford? Your local Coldwell Banker ®
sales professional will be happy to sit down and 'crunch the numbers'
with you, and show you some creative financing options you may have
never considered. Why not take a few minutes and find out how to turn
your dream of home ownership into a pleasant reality!
Ready for your custom built home? Call me Joe Crawford at
(519)742-5800 x 2117 I know all the construction sites in the
Kitchener/Waterloo area, you let me know what your looking for and I
will find it.