Tuesday, February 3, 2009

Feberal Budget Offers Something for Homeowners

The recent federal budget offered a small handout to homeowners in the form of a "home renovation tax credit." Homeowners can claim a 15% non-refundable tax credit for eligible renovation expenditures over $1,000 but not more than $10,000. The maximum credit under the program is $1,350 and is available on eligible costs for renovation work and or materials acquired after January 27, 2009 and before February 1, 2010. This credit is only available for renovations to a dwelling that is eligible to be the family's principal residence or that of one or more of their other family members including spouses, common-law partners and their children. Typical examples of eligible expenses include new windows, decks, heating systems etc. The credit covers the cost of labour, materials, professional fees, building permit expenses as well as things such as equipment rentals to perform the work etc.
First-time home buyers also gained some relief in the budget aimed at making home ownership more affordable. First-time home buyers can now withdraw up to $25,000 from their RRSP to be used as a down payment on a residential property. The previous limit had been $20,000 which was established back in 1992 and had not been adjusted for inflation. In 1992, a $20,000 down payment represented just over 13% of the average home price in Canada whereas today, $20,000 represents approximately 6.5% of the national average home price.
Studies have shown that every residential sale transaction generates on average, $32,000 in ancillary spending during the three years following a sale. This includes the purchase of appliances, home furnishings, renovations, landscaping and other home related products and or services. In 2007, these purchases represented $7.1 billion to the Canadian economy and with their latest budget; the federal government has acknowledged the significant home ownership has on the economy as a whole.

No comments:

Contact Me

Royal LePAGE Locations North (Brokerage)

330 First Street, Collingwood, ON L9Y 1B4


Direct: 705-443-1037

Office: 705-445-5520 ext 230


My Profile

Rick relocated to Collingwood from Toronto in 1985 through a transfer with Goodyear Canada. In 1987 Rick was recruited by a major client of Goodyear’s, managing their Canadian business based in Barrie before moving to Chicago in 1992 as Vice President of Sales & Marketing. Upon returning to Canada in 1996, Rick ran an industrial products manufacturing company in Stratford, Ontario. In 1998 Rick returned to Collingwood with his two children. Rick is a licensed real estate Broker with Royal LePAGE Locations North in Collingwood and holds his MVA designation (Market Value Appraiser-Residential). He is an active volunteer in the community serving several years on the Board of Directors with the Collingwood Chamber of Commerce as Treasurer, 6 years on the Board of Directors for the Southern Georgian Bay Association of REALTORS® of which he is the Past President (2008) and currently serves on a committee with the Ontario Real Estate Association. Rick is a diverse executive manager with extensive experience in strategic planning, manufacturing, finance, human resources and quality assurance management.