With purchasing a home, there will be some costs associated with it. Buyers do not generally pay the REALTOR®, the Seller does, so that is not a factor, but there are purchasing and closing costs that you do need to be aware of.
Even before you purchase, there are a couple things that will come up. When you see a place you like, and have an accepted offer, you will want an inspection. This costs anywhere from $250 to $500 on most properties, but could easily be $1,000 with a very large or complex property.
The bank may also bill you for an appraisal if financing is apart of your purchase, although you may not realise this cost until a little later.
That is most of the expense until closing day. Upon closing, you will be paying a notary or lawyer to perform the transaction. Their costs can range from $1,000 or more on a luxury property.
The lawyer pays out numerous expenses on your behalf, including obtaining forms from strata and sometimes doing further research on title and strata. There are small charges for items such as registering the title.
The larger of the costs is usually the property transfer tax. First Time Buyers may be eligible for exemption from this under certain circumstances and if the property is under $475,000, but most purchasers are paying this. It totals 1% on the first $200,000 and 2% on the balance of the purchase price. This is $18,000 on a $1 million home. As of early 2016, there are some changes to the property transfer tax, and homes over $2,000,000 will now pay 3% on the portion over $2 million, with the value under $2,000,000 remaining the same. There is now a little help for purchasers of New Properties under $750,000, with the property transfer tax no longer applying to these properties.
New homes will also have GST of 5% of the purchase price. there is a partial rebate on homes up to $350,000, with that reduction reduced to $0 at $450,000. Tax Calculator
First month of strata fees, if you are in a strata complex, will be paid at closing.
Once in your home you will have quite a bit to set up. Be sure to call BC Hydro to transfer the electricity account to you. It will work for a while, but you will eventually be cut-off if you do not call them.
Shaw and telus provide services in the area, Shaw is cable and Telus in ADSL. Telus is the only company that offers land-lines for the phone. All other phone companies are either IP phones or cellular. Both companies provide bundles on all three of these items, and include up to very high-speed download speed for their very high speed connection..
Stratas will need to know who owns the unit and who occupies it, be sure to follow up with the strata management company. There are a couple forms to fill out, and some strata may fine you if you do not comply in a timely manner. If the strata property is rented out, there is also a strata form for that, the strata will need to know.
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Houses and Luxury Homes
This communication is not intended to induce a breach of an existing agency relationship.