Cheap Gas, Pricey Parking in Calgary
While Calgarians enjoy some of the lowest gas prices in Canada, they have to dig deeper into their pockets when pulling into the parking lot because the city ranked the priciest plane to park in Canada, according to global real estate firm Colliers International’s 11th Annual Parking Survey
Calgary’s median monthly unreserved parking rate has risen by 4.2% over the past year. Now at $472.50, it is more than double the national average of $235.76. This makes Calgary the second most expensive city to park in North America, trailing only behind New York ($541 US midtown and $533 US downtown) and topping cities such as Boston ($438US) and San Francisco($375US)
In eight out of the 12 major Canadian cities surveyed, driver are paying more to park their cars in the city’s core Kitchener-Waterloo($128.24) and Vancouver($287.98) experiences the highest parking rate increase of 9.7% and 7.9%, respectively. In contrast drivers in Ottawa ($195) and Toronto($332.38) saw their unreserved monthly parking fee descending by 6.6% and 1.2%, respectively.
The monthly parking rates and year-over-year percentages change of Canada’s major cities:
1. Calgary $472.50, 4.2%
2. Toronto $ 332.38, -1.2%
3. Montreal $296.21, 5.6%
4. Vancouver $287.98, 7.0%
5. Edmonton $275, no change
6. Ottawa $195.00, -6.6%
7. Victoria $184.80, 2.7%
8. Saskatoon $170, 1.8%
9. Regina $168, 3.2%
10. Halifax $166.75, 5.4%
11. Winnipeg $152.25, no change
12. Kitchener-Waterloo $128.24, 9.7%
Canada national average, $235.76, 2.6%
But what may seem to Canadians as shockingly high cost parking fees may be considered a bargain when compared to other cities around the world, particularly in Europe and Asia. London City was the most expensive place in the world to park, with an astronomical 1,084US median price for a monthly spot. London’s West End was close behind at $1,014US per month, followed by Zurich at $822US. Hong Kong and Tokyo round out the global top five priciest cities list with $744US for a monthly parking spot.
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Market Watch
Housing Market Drives Economic Optimism
Although Canadians are still coping with the recession's effects, they feel more optimistic about their personal finances and the housing market is playing a key role, a survey in Consumerology Report reveals. More than half (58%) say they're better off financially today than before the recession, and the driver of this post-recession optimism appears to be the fact that their homes or condos are worth more now than pre-recession. “Ultimately, the results show that people's confidence is highly reliant on a strong housing market," says Jack Bensimon, president of Bensimon Byrne, the ad agency that commissioned the survey. Visit www.consumerology.ca
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Ontarians love their Cottages!
Warmer weather often turns people's thoughts to getting away from it all, and a recent survey reveals that many Ontarians love their cottages. Ontario residents rated the three most important attributes of a recreational property as four-season use (47%), quietness (45%) and a rental potential (26%), according to a 2011 Royal LePage report. A strengthening economy and an expected rise in interest rates prompted 46% of prospective recreational property buyers to want to buy before a potential rate increase. Sixty-one % of those polled said they are likely to buy a cottage on a lake in the next two years, high than the national average of 57%.
On the national front, an overwhelming majority of Canadians believe a vacation home is a good long-term investment, the poll shows. Overall, 89% of respondents agree that recreational properties are a good investment, including 91% of Ontarians, 92% of Albertans, and 87% of B.C residents and 81% Quebeckers.
When asked to compare recreational properties to the stock market in terms of providing a better financial return, 50% chose recreational properties while only 29% chose the stock market, with 21% undecided.
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HST Rebates
HOW IT WORKS FOR THE BUILDERS
Builders may continue the same process that they are presently using.
The Agreement of Purchase and Sale would include HST and any rebates would be assigned to the Builder. The application for the rebates would follow the current format. The Buyer would fill out the application form applying for the rebate. The Buyer would then execute a document transferring the rebate to the builder and builder would then remit the net tax with supporting documentation.
It is important to note that the Buyer must qualify for the rebate. This means that the Buyer must be using it as the primary residence. A Buyer who is purchasing a new home as an investment to turn over for a profit might not qualify for the rebate. The Agreement of Purchase and Sale should identify these requirements for the Buyer in circumstances where the Seller will not charge extra. Where the Buyer does not qualify, the Builder will look to the Buyer to reimburse the Seller for the rebate portion of the HST.
The Agreement would be worded to say that the Buyer would not be charged an extra if they qualified. Using this approach is mandatory because of the court cases allowing a deduction if the words “included in” are used and the property is not exempt.
An amendment was created to the legislation on June 19, 2009. If a Buyer was to purchase a new home from a builder, the Buyer would receive a rebate of a portion of the tax for properties that sold for $400,000.00 or less. Unfortunately, until the amendment, if the price was $400,001.00 then the full amount of the tax would apply.
With the amendment, the government recognized that the new home industry would face almost certain devastation. As such, now the government will provide a rebate for seventy-five percent of the tax payable to a maximum of $24,000.00, regardless of the price paid for the property. Consequently, if a Buyer pays $500,000 for a newly constructed home the net tax will be $16,000.000 after deducting the $24,000.00 credit.
Price of Eligible New Home (not including GST or HST) |
GST Portion- New Housing Rebate |
Ontario Portion – New Housing Rebate |
Total Rebates |
| $350,000 | $6,300 | $21,000 | $27,300 |
| $400,000 | $3,150 | $24,000 | $27,150 |
| $450.000 and above | $0 | $24,000 |
$24,000 |