So you hit it big or you have worked your butt off for years and you can finally upgrade to that estate home in Langley you have always dreamt of with a huge gated driveway and grand winding staircase. From experience buying, selling and building luxury real estate in Langley and White Rock, I can tell you first hand its not all about the gimmicks as location always plays a super important role for Luxury Real Estate as it can affect the quality of enjoyment for something you pay millions for and Luxury Tax is something commonly overlooked in luxury real estate purchases in BC now days prior to tours and purchase.
What are gimmicks?
Gimmicks in luxury real estate come in all shapes and forms. You will often see knock off products that resemble the real thing but in actuality they’re are cheap knock off pretend products used in construction. Some common knock off products you will see from builders looking to take advantage of the star struck buyer are cheap electrical connections (alarms, cameras, light fixtures, home theatre, and exterior lighting). Luxury electrical gimmicks are found in many warehouses in Surrey and Delta and are made in places around the world to look and resemble high end quality products. However once you move in you will quickly realize that these products burn out very quickly or tarnish before you even receive the keys to your multi million dollar home. Other gimmicks are cheap elevators (low weight capacity), fake brand name fireplaces, knock off appliances, fake stone (marble, granite, quartz, travertine) amongst many other gimmicks. For a full list of things to watch for contact Ryan Taylor Realtor. He would be happy to show you around and which houses are made up of fake products claiming to high end.
Location Location Location
Whether you are purchasing box in the sky with ocean views or an equestrian estate property in Langley your location should be on point. If you buy a white rock luxury condo in the sky you better be damn sure that you would have some new building going up right in front of you prior to signing that dotted line. As far as estate properties, they can often be found in ALR land use areas and may not allow the horses and barns you intend on building once handed the keys. Looking for a lake front property in Mission or Maple Ridge? Well where on the lake may or may not permit a dock and you may not be able to even have a small party and noise restrictions could apply. Contact Ryan and his team to get more location specific info on Luxury Real Estate in Langley, Maple Ridge, and White Rock.
NDP’s Taxes Taxes & More Taxes
It seems that NDP has not changed since last term elected. The tax BC to death approach is very much in full effect. Below is a list of expected taxes one who is purchasing real estate can expect. For clarification on luxury real estate tax in BC call or message Ryan Taylor today and he would be delighted to assist you.
Real Estate Taxes in British Columbia, Canada
The following is a basic outline of Real Estate taxes you can expect to pay in British Columbia:
Property Transfer Tax:
1% on the first $200,000,
2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
3% on the portion of the fair market value greater than $2,000,000, and
if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).If the property is classified as residential and farm, or is residential mixed class (such as residential and commercial), you pay the further 2% tax on only the residential portion of the property. Use our Property Transfer Tax Calculator for Residential Property over $3,000,000 to help you determine the tax amount owing.
The Property Transfer Tax Act as amended imposes an additional Property Transfer Tax of 20% of the fair market value of any residential property being purchased by a Foreign Buyer/ Foreign Entity.
The property transfer tax is 3% on homes worth over $2 million.
Capital Gains Tax: (Will not affect you if on your principle residence)
Good and Service Tax (GST): 5% GST is charge on newly constructed homes. New home buyers of homes under $350,000 can apply for a partial rebate of this tax as long as the home will be the purchaser’s primary residence. Homes between $350,000 and $450,000 CDN have a smaller rebate that can be applied for and no rebates are available over $450,000 CDN.
Property Tax: This is an annual fee levied with local communities. There are many different amounts of tax you may have to pay depending on the area. We can help you determine how much you will have to pay when viewing the homes you are interested in purchasing. Different homes in different areas will all have different taxes and will be taxed appropriately in correlation of the property’s assessment value.
Miscellaneous Fees on BC Real Estate
Realtors® Fees: If you purchasing a property there is absolutely no fee to obtain a Realtor. If you are looking to sell a home the commission we charge straight across the board for all clients is 7% on the first $100,000 and 5% on the remaining balance. Just under half of that commission will be paid out the Buyer’s Realtor and the commission at time depending on the client can be negotiable.
Lawyer’s Fees: Lawyers in BC, Canada will review the offer of purchase, search the title, draw up the mortgage documents and tend to the closing dates. Typical Legal Fees for these services are between $500-$800 CDN.
Home Inspection Fees: This protects you from purchasing a home with defects not found by the untrained eye. This typically will cost anywhere from $450-$800 CDN depending on the size and the condition of the home.
Strata Fees, Service Charges for utility hook ups & Property Insurance may also be applied to the total charges of purchasing your property.
Clearance Certificate: Paid by the seller and can range from $300-$1,000 CDN depending on the complexity of the sale.