B.C. waterfront gets a little closer
Increased HST rebate woos Alberta buyers
B.C.’s decision to nearly double a tax rebate has caught the eye of Albertans looking west for recreation property, says a sales representative.
“It pulled them off the fence,” says Lynn Robison, director of sales at Qualicum Landing on Vancouver Island.
Under changes to B.C.’s Harmonized Sales Tax (HST), certain buyers are able to claim a provincial rebate of up to $42,500, effective April 1.
That’s up from the previous maximum rebate of $26,250.
The rebate affects buyers of new secondary vacation or recreation homes outside the Greater Vancouver or Victoria regions priced up to $850,000.
Shortly after the change was recently announced, two Calgary residents bought properties at Qualicum Landing, while another placed a verbal offer, says Robison. “On two of them, it was absolutely the HST announcement,” she says.
Qualicum Landing is a sevenhectare waterfront community just north of Qualicum Beach on Vancouver Island.
The rebate increase is part of B.C.’s transition from the HST back to a provincial sales tax on April 1, 2013.
Prior to the rebate announcement, there was uncertainty with the rules around the HST as it is phased out — something that was negatively influencing potential buyers, says Robison.
“People were paralyzed,” she says. “It was confusing for them and nobody wanted to be the last to pay the tax.”
The rebate change was also made to help support workers and communities in B.C. that depend on recreation property development, says a government news release.
To that end, Robison sees the move as a benefit across the industry, including B.C.’s builders and developers.
“There’s been a collective sigh of relief,” she says. “We’re getting back to business as usual.”
While Robison says she expects the change to bring renewed interest in B.C. recreation properties from all over, she adds Alberta investors will be high on that list.
Albertans account for about 35 per cent of the ownership at Qualicum Landing.