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Affordable or chicken ribs: GST returns to buyers and looks at flowers in the fog
On July 1 day, the Conservative government fulfilled its obligation to reduce GST from the original 7% to 6%, and all walks of life responded immediately, with or without adjustments. But for daily life, the decline of 1% is almost negligible. 1% is a considerable amount for such a large consumption of a house. How much benefit can GST reduction bring to ordinary buyers? How much impact will it have on the housing market?

Tax Bureau conditionally returns 1%.

As part of the implementation of the goods and services tax relief policy, the federal government has taken some special measures during this transitional period. Including 1% refund to the buyer. However, buyers who can apply for a refund must meet a series of conditions. These include:

1, I want to buy a new house.

2. For the house purchase contract signed before May 2, 2006 (including May 2), the final closing date is after July 1 day (including July 1 day), and the payment shall be made according to the GST standard of 7%.

In fact, affected by the existing preferential policies for buying new houses, the actual transitional refund is generally lower than 1%. A 0,000 house can get a return of around 00. Houses above 0000 yuan are not in the original preferential category and can be returned directly 1%. So whether you can get more than 00 yuan depends on the purchase price of the house.

The change of the purchase contract generally does not affect the government return. However, if the contract involves extension, etc. It will be regarded as a new contract. Whether it can be returned at this time is related to the above date range. Only when the new contract meets the time limit requirements can it be returned.

It should be noted that if you are eligible to apply for input tax deduction after buying a new house, you cannot apply for this tax refund.

Property buyers who are eligible to apply for a refund can download the application form from the website of the Canadian Inland Revenue Department and check the application details. Any qualified property buyers, whether individuals or units, can get a refund from the tax bureau.

Buyers have little confidence in profit.

Although the government seems to be sincere about the refund during the transition period, many property buyers are skeptical about profiting from it. On the one hand, this is because some property buyers do not understand this policy and have never even heard of it. On the other hand, for ordinary property buyers, this procedure and some relationships are too complicated to understand and understand. For example, many people tend to confuse the existing preferential purchase of new houses with the refund during the transition period.

For such a big event as buying a house at a big price, all property buyers have too many things to consider. For this 1% refund, some buyers said that they had no energy to care unless someone specifically reminded them, and they did not believe that there would be good things.

At the same time, developers usually include GST in their quotations, which makes it more complicated to get a transitional refund. Some developers say that the GST in the price has been changed to 6%, or 1% GST can be refunded after buying a house. In fact, ordinary property buyers only get a final price, and the initiative in pricing is in the hands of developers. The true composition of the price is difficult for buyers to grasp. Ms. Liu Kangmu, who recently bought a house, said that she heard about the refund, but there was no way to pursue it. The developer just put the money in the left pocket into the right pocket, and she still looked at the final price when buying a house. After all, 1% is not the key to buying a house.

Developers are not entitled to a refund.

Many property buyers believe that the money returned from the transition seems to have fallen into the pockets of developers. However, the original intention of the federal government is to let buyers get this refund.

Mr. Ye, a property buyer, said frankly that since he didn't know whether GST was 6% or 7%, he could only negotiate the price directly with the developer when buying a house. If the developer is willing to refund 1%, he doesn't care whether the money is refunded in name.

For developers, if GST is actually 7% when selling houses, they will get 1%, and a large number of houses will be gathered together, which is also a considerable "windfall".

However, in fact, the government has taken precautions against this. According to government regulations, at this stage, sellers must charge 7% GST, and buyers themselves go to the tax bureau to apply for tax refund. The seller has no right to return it to the buyer, and the winner of the final refund can only be the buyer.

A few days ago, the federal government has discovered this problem and added a question and answer on the website about this refund. The question is: should the transitional refund be given to the buyer of the new house or to the developer, who will arrange it?

Canadian tax bureau replied: the transitional refund will not be given to builders or others, but only to buyers of new houses. The buyer fills in the application form and submits it to the tax bureau. The Inland Revenue Department will only issue refunds to qualified buyers.

Stimulate housing prices to continue to rise

According to Prime Minister Harper's campaign plan, after the Conservative government reduced the goods and services tax to 6% this year, it will reduce 1% in five years. In addition, people who reinvest within six months do not have to pay capital gains tax.

Fraser Valley Real Estate Bureau publicly stated that lowering GST can make buyers more affordable. Jack Siemens, chairman of the bureau, believes that the policy change of goods and services tax has brought good news to the real estate industry. GST is reduced by 1%, which means that buying a house for 4 1 10,000 yuan can save about 4,000 yuan. Especially in areas where the average house price is higher, buying a house can save money. Simmons said that if GST finally drops to 5%, the tax on buying new houses will reach the lowest level since 15.

Buyers can also have more disposable funds when buying a house, because cutting GST will also bring benefits to other aspects. Simmons said that the abolition of capital gains tax will bring great benefits to low-income investors. They can use the money saved to invest in new projects.

However, if these measures stimulate the sustained and strong demand for housing, and the supply is less than the demand, house prices will rise.

David Baxter, executive director of Vancouver Futures Association, predicts that the reduction of goods and services tax will inevitably push up the real estate price further. Just as when the interest rate is lowered, people can buy houses more easily, which increases demand and leads to higher prices. The same will happen with tax cuts.

Buyers can save limited expenses.

Pang Haifu, an expert in real estate transaction and investment, analyzed that reducing GST will have a strong promoting effect on the economy.

He believes that the impact of GST decline on real estate can be divided into two aspects: First, the impact on the price of new houses. If GST is reduced to 5%, the cost of selling houses by builders will be reduced by 2%. If a large part of it is given to buyers, it will promote the consumer psychology of buyers, thus further promoting the price increase of new houses, thus driving the price increase of second-hand houses; Secondly, the impact on the second-hand housing market. Although the second-hand house does not need to pay GST when purchasing, for the seller, the seller needs to pay a GST when paying the brokerage commission. The commission in the market is about 4-5%. After the GST is lowered, the seller can save about 200-500 Canadian dollars, which generally will not have a big impact on the market price.

Yang Hong, a senior agent of Hang Seng Real Estate, believes that for ordinary consumers who buy a house and live in it, it is difficult for the house price itself to change before and after the GST reduction, because no matter whether they buy a new house or a second-hand house, buyers generally do not directly contact the GST of the house itself during the transaction. For them, GST relief is more manifested in lawyer's fees, house inspection fees, commissions and so on. According to Yang Hong's observation of recent housing sales, generally speaking, the downward adjustment of GST has little direct impact on the housing market (including house prices and transaction volume). However, it still has a certain impact on the consumer confidence of buyers.

It seems that the downward adjustment of GST is not a "baton" for falling house prices. On the contrary, house prices may rise as a result. However, if you have already bought a house, you still have to fight for your rights. See if it meets the transitional return conditions, and don't miss this hard-won 1%.