First Time Home Buyer

[MikeO]

Originally Posted by KenN

You are aware, aren't you, that the new rates for new housing HST rebate came into effect on April 1? This takes a lot of the sting out of the HST.

Also, when buying a newly built home, you can write the offer so that the offered price is inclusive of HST so that you control exactly what is paid. Whether the buyer or the builder then gets the HST rebate is a point of negotiation.


Kn.

Yes I am more than aware. Regardless of the rebates, unless the builder is in financial trouble, you will end up paying more for a brand new property with the HST. I'd still advise people away from new homes unless they must have it or they don't mind paying more. When looking at any attached properties there are more than enough homes that were built in the last couple years that still have that new car smell with out the financial involvment of buying new and having to deal with the HST. Rebates or not.

[go-t]

Originally Posted by MikeO

Yes I am more than aware. Regardless of the rebates, unless the builder is in financial trouble, you will end up paying more for a brand new property with the HST. I'd still advise people away from new homes unless they must have it or they don't mind paying more. When looking at any attached properties there are more than enough homes that were built in the last couple years that still have that new car smell with out the financial involvment of buying new and having to deal with the HST. Rebates or not.

Really? If you can afford new, you have a pile of securities that are otherwise unavailable to you - warranty, higher resale value (only 1 previous occupant), and the knowledge that there aren't any duct tape fixes done to your home. You get a rebate on your HST anyway, so what's the problem?

[MikeO]

Ok, I was not trying to get into a huge debate about this and I see your points and I agree. New is always a nice option and my mistake was using HST instead of tax. You're not completely exempt of paying tax (hidden or otherwise) on a new property. Look at any HST calculator and see for yourself.

In the end though more times than not the price for a new property will end up costing you more upfront due to the lack of negioating by the builder. Buying a property that was built in the last couple of years you still get the piece of mind of the balance of the new home warranty and much more of a chance to negotiate.

Resale value is hardly effected buy the previous number of owners unless that number is abnormally high. It's pretty common for condo properties to be bought and sold quite regularly (investors) and I have yet to see it effect the price significantly if at all(assuming it's been looked after). It's not a used BMW on it's 5th owner we're talking about.

[KenN]

Not so much a huge debate. The HST is there, the rebate is there and the rebate has been jacked up. I just take issue with the advice "stay away from new homes to avoid the HST".

If one is aware of the effects of HST and how to deal with it during negotiations, then it's not the great bogeyman you make it appear to be.


Kn.

[MikeO]

Never made it out to be a "bogeyman". Poor choice of wording my first go around maybe. You just need to be careful and understand the taxes involved if you start approaching the exemption limits which is pretty standard especially around Vancouver.

[in_a_bath]

Originally Posted by MikeO

Ok, I was not trying to get into a huge debate about this and I see your points and I agree. New is always a nice option and my mistake was using HST instead of tax. You're not completely exempt of paying tax (hidden or otherwise) on a new property. Look at any HST calculator and see for yourself.

In the end though more times than not the price for a new property will end up costing you more upfront due to the lack of negioating by the builder. Buying a property that was built in the last couple of years you still get the piece of mind of the balance of the new home warranty and much more of a chance to negotiate.

Resale value is hardly effected buy the previous number of owners unless that number is abnormally high. It's pretty common for condo properties to be bought and sold quite regularly (investors) and I have yet to see it effect the price significantly if at all(assuming it's been looked after). It's not a used BMW on it's 5th owner we're talking about.

Actually, we ended up getting a deal on our last place because it was new. Yes the HST can be a kick in the pants but if you can find a new place that is sitting empty the developer will often cut you a deal to get the mortgage off their hands. Once it is finished, they are just losing money (unless the market rises to compensate).

[KenN]

Originally Posted by MikeO

You just need to be careful and understand the taxes involved if you start approaching the exemption limits which is pretty standard especially around Vancouver.

We'll stand in agreement there, then.



Kn.

[MikeO]

Originally Posted by in_a_bath

Actually, we ended up getting a deal on our last place because it was new. Yes the HST can be a kick in the pants but if you can find a new place that is sitting empty the developer will often cut you a deal to get the mortgage off their hands. Once it is finished, they are just losing money (unless the market rises to compensate).

Agreed. I hinted at that in one of my first posts.

[gerewh0re]

Originally Posted by Lady Gravity

one thing i learned - if you're buying a place that's been a rental, write something into the contract that it has to be in the same condition as when you inspected it to purchase. i had a 2 month delay between closing and moving in, and the condition had dramatically changed.

Did you use a realtor? If so your contract included that exact clause

[Lady Gravity]

Originally Posted by gerewh0re

Did you use a realtor? If so your contract included that exact clause

yeah but the seller wouldn't budge, on anything. so it was either take it as is or leave it.

[KenN]

You probably had real grounds to take that to court.

Of course, by the time you got through the courts, you'd probably spend more than the final award amount.


Kn.

[switch]

Get a good home inspector and verify the report.

[bkoz]

Originally Posted by switch

Get a good home inspector and verify the report.

How does one verify the report?

[pete]

By paying a second home inspector. Geez doesn't that sound dumb.

[Wernie]

maybe read some of the entries on http://www.greaterfool.ca/ and see if you still think it's a good time to buy