Comments on: Anecdotes and Advice from a First Time Home Buyer Part 8 – Condos and Taxes

By: The Financial Blogger | November Monthly Top Ten

The Financial Blogger | November Monthly Top Ten — Thu, 06 Dec 2007 11:08:37 +0000

[...] Anecdotes and Advice from a First Time Home Buyer Part 8 by Four Pillars. Did I ever told that this guy is writing great series? Well this time it is his [...]

By: Anecdotes and Advice from a First Time Home Buyer Part 9 - A Reflection

Anecdotes and Advice from a First Time Home Buyer Part 9 - A Reflection — Wed, 05 Dec 2007 10:00:46 +0000

[...] My friend Christine has kindly agreed to write a series of posts on her experiences with buying a home for the first time which will be posted occasionally. See Part 8 – Condos and Taxes. [...]

By: FourPillars

FourPillars — Thu, 29 Nov 2007 17:50:35 +0000

Warren – first time home buyers are exempt up to $400k. So they still pay 2% tax on any amount above $400k.

GST rebate is only applicable to new construction and the limit is $450k sale price.

Mike

By: Warren

Warren — Thu, 29 Nov 2007 17:39:10 +0000

That Toronto land transfer tax is a real kick in the balls, I hope Vancouver doesn’t go the same way. We already have a 2% (I think) BC provincial LTT.

Is it exempt for first time buyers? The provincial LTT in BC is.

And of course don’t forget GST! There’s a rebate for first time buyers, I think I paid 3 or 4 % back when GST was 7% on my first condo.

By: telly

telly — Wed, 28 Nov 2007 20:54:33 +0000

Lol, nice catch Mrs 4P.

By: FourPillars

FourPillars — Wed, 28 Nov 2007 20:44:36 +0000

I did indeed say that and yes, I did block out that year

Comment #10

http://www.moneysmartsblog.com/2007/11/14/anecdotes-and-advice-from-a-first-time-home-buyer-part-6-week-one-with-an-agent/

By: Mike's Wife

Mike's Wife — Wed, 28 Nov 2007 20:32:31 +0000

Telly, did Mike really say that? He must have temporarily blocked out the year spent in my little tiny starter home…

By: telly

telly — Wed, 28 Nov 2007 19:52:35 +0000

Mike,
I totally agree, that’s why I suggested continuing to rent. I wouldn’t want anyone to misinterpret what I meant! Spreading yourself thin to afford your dream home is a much worse prospect than upgrading in 5 years, although neither is ideal.

Oddly enough, we bought a home that was significantly cheaper than what we could afford and we thought we’d upgrade in 3-4 years (it’s been that long since we purchased). Turns out we like it quite a bit and think we’ll stick around.

Like you said on another thread somewhere, it’s not the “house”, it’s the people inside it that matter. Not spreading yourself thin means less stress and more time to enjoy your “home”.

By: FourPillars

FourPillars — Wed, 28 Nov 2007 19:23:43 +0000

Telly – you make a good point but I don’t know if someone should buy a house they have a hard time affording just so they don’t have to upgrade in five years.

I think everyone should buy a house they can afford and that’s that. If it’s not their dream home then too bad.

Mike

By: Mr. Cheap

Mr. Cheap — Wed, 28 Nov 2007 18:52:32 +0000

telly: Yeah, you’re probably right. I personally wouldn’t go through the “upgrade every 5 years” route, but it seems like other people recommend it (and you’re right that the transactions costs are going to gobble up a lot of your appreciation).

I think far too many people think home ownership iss the only path to wealthy, and you’re right that renting is well worth considering (as long as you look into other investment options instead of just pouring the extra cash into your lifestyle).

As always, I defer to you ;-P