Mike Ingel’s Post

Name: Mike Ingel on LinkedIn: #gstupdate #realestatecanada #homeownership #vancouverrealestate…
Uploaded: 2024-11-13T07:38:07.588Z
Duration: 3 min 32 s
Channel: Mike Ingel

Mike Ingel

Contact me for a free market valuation no obligations!

1mo

🏠 New GST on For-Sale Agreements: What Does It Mean for You? 🏠 The recent GST change on residential sale agreements could affect how much you pay upfront on a new home, impacting buyers and sellers alike. But despite this new cost, owning a home remains one of the best ways to build wealth in Canada. 🏡 With the capital gains exemption on primary residences, homeowners benefit from tax-free growth on their home’s appreciation—something that can’t be ignored in high-demand markets like Vancouver. Curious about how this affects your real estate plans? Reach out, and let’s discuss the best strategies to keep your financial goals on track! 📈 #GSTUpdate #RealEstateCanada #Homeownership #VancouverRealEstate #CapitalGainsExemption #MikeIngelRealtor #BuildWealth #RealEstateInvestment

Transcript

Hi everyone, Mike Engel with Romanza Realty. Today I want to talk about an important change that's happening in real estate, the new GST on the 4 sale agreement for residential properties. This new tax is already creating waves in the industry and it could have a significant impact on buyers, sellers, and the housing market as a whole. Let's dive into what this means for you and why owning a home is still one of the smartest financial decisions you can make. For those who might not know, GST or Goods and Services tax is a federal tax applied to various goods and services and this change now includes the sale of. Residential real estate specifically, it means that new properties sold in Canada could come with an additional tax write on the sale agreement. What this does is increase the overall cost of buying a new home, which could be a big factor in affordability, especially in markets that are already high cost like Vancouver. Now let's break down how this could impact both buyers and sellers. For buyers, this added GST can be substantial. Imagine you're buying a newly constructed property. Before, you might have only been paying GST on certain additional services, but now with this new rule, the entire sale. Might be subject to GST. This means a higher upfront cost, which in turn can increase the overall mortgage payments or limit the budget you may have for other essentials. It could also push some buyers into lower price brackets, changing the demand in different segments of the housing market. Sellers, particularly developers, might feel this too. They'll have to consider if and how they can pass on these costs to buyers. And if the market doesn't bear those added costs, well, it could affect sales rates and even impact future housing supply as developers take a more. Cautious approach to building Now let's talk about why despite these changes, owning your home remains so important, especially when we think about the capital gains exemption. When you own your home and its value appreciates, you benefit from what's called the capital gains tax exemption on primary residences. This means that if you sell your home for more than you bought it for, you won't be taxed on the profit as long as it's your primary residence. This exemption is a huge financial advantage in Canada. Let's say you bought a property five years ago and it's now worth a lot more. Without the capital gains tax exemption, you'd be taxed on that profit, but with the exemption, every dollar of appreciation stays in your pocket. This is why owning a home isn't just about having a place to live. It's a key investment tool that helps Canadians build wealth in high demand areas like Vancouver or Toronto. Property values have consistently trended upwards over time, even with market fluctuations. Real estate has proven to be a solid long term investment and capturing that appreciation tax free through the capital gains exemption is a massive benefit. While the new GST on sale agreements may affect the cost of entry into the market, the long term benefits of owning a home and building equity remain unmatched. With home ownership, you're not only providing a stable living environment for yourself or your family, you're also setting yourself up to benefit from any appreciation and value, which can be especially impactful over the years. So even though this new GST might make buying a property a little pricier up front, the value of owning your home and capturing the capital gains exemption on any appreciation is still a huge. Financial advantage Home ownership allows you to grow your wealth in a way few other investments can offer, and the tax free growth you enjoy as a homeowner is a benefit that shouldn't be underestimated. If you have any questions about the new GST, how it might impact your decision to buy or sell, or just want to talk about your real estate goals, please feel free to reach out. I'm here to help you navigate these changes and make the best decisions for your future. Thanks for watching. And remember, whether you're buying or selling, planning is key and I'm here to support you every step of the way.

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