A "message" from Message - Are Resale Houses Better than New Houses?
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A resale house is generally thought of as a house which has been previously occupied. There are some benefits to buying a resale house.
Primarily, you can see what you are getting - the house, it's condition, the lot and the present character of the neighbourhood.
A resale house may include drapery tracks, light fixtures and towel racks already installed. Frequently, the price may also include such extras as higher quality broadloom carpeting, appliances, built-in cupboards, bookcases or additional shelving, tool racks, workbenches and other such items of conveniences or decor the owner installed but is leaving behind.
You can see exactly what the condition of the decor is, even if you don't like the colour of the walls, you at least know what the colour is. You can see both the features and flaws.
The garden may be lightly or fully landscaped, but the lawn at least, is usually well established. You can see if it is fenced, or if there is a hedge. You can see how the lot relates to the properties adjacent, and the proximity of the neighbouring houses.
You can see the street, assess the character of the neighbourhood as well as the maintenance standard of the nearby properties.
One of the unrecognized values of a resale property is the fact that you see it as it is - completed and ready for you to move in. And one final equation: there is a definite tax advantage to buying a resale as a opposed to a new house.
Excerpt:
Some BC Real Estate HST Numbers and How It Affects You
Scenario 1: Based on a purchase price of $600,000 for a new BC or Vancouver home, the homebuyer would pay a total of $72,000 in BC HST taxes (12% on $600,000). With the homebuyer HST rebate for purchases above $600,000, the homebuyer would receive the $20,000, thus reducing their purchase cost to $52,000 in taxes for a total of $652,000. Currently, the 5% GST applicable to the same home would cost only $30,000 (a difference of $22,000). *This does not include the HST applicable to closing fees.
Scenario 2: If a BC homebuyer wanted to purchase a new Vancouver home costing $800,000, the total 12% HST hit would be $96,000. The partial HST rebate of $20,000 (maximum allowed) will reduce this to $76,000, making the final purchase price at $876,000 plus property transfer taxes and other closing costs. Before July 1, 2010, a new home would be subject to only 5% GST which is $40,000 on a $800,000 property. With the new BC harmonized sales tax, a BC homebuyer would pay $36,000 more for the same home after implementation of the HST tax. *This also does not include the HST applicable to closing costs.
Hugh Message
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Hugh Message, Macdonald Realty 1st Pioneer, 22424 Fraser Highway, Langley, BC V3A 8N3 604-530-4111