Are you planning to buy a home? Then you will need to consider a number of factors other than making a list of “must-haves” for your future house. When buying your first home, there are a host of financial and lifestyle considerations you should figure out. For this reason, you must be aware of the essentials and little details during the home buying process so that you make the best long-term investment of your life.
To ensure you are aware of the basic requirements before plunging into homeownership, GSP Chartered Professional Accountant Professional Corporation put together a list of five tips to follow when purchasing a house.
Tip #1: Find the right location
When it comes to purchasing a home, location is a crucial factor to consider. You may have to pay a little more, but buying in a great location means you will have many more profitable options down the road.
Tip #2: Start tax planning
Start planning for your taxes before cruising the real-estate market. New home purchases are subjected to the federal Goods and Services Tax (GST), provincial transfer tax that varies from province to province, and also the municipalities that may levy annual property taxes. Get help from a professional to clarify home ownership taxes.
Tip #3: Understand the risk and cost of property investing
If you’re buying a property for investment purposes, it’s important to understand the risk and cost of owning rental property. Make sure to discuss with your financial advisor about commissions and understanding Adjusted Cost Base (ACB).
Tip #4: Learn about the new purchase HST rebate
The GST or HST new housing rebate allows you, an individual, to recover some of the GST or the federal part of the HST paid for a new or substantially renovated house that is used by or your relations as a primary place of residence when all of the other conditions are met. In addition, other provincial new housing rebates may be available for the provincial part of the HST, whether or not the GST or HST new housing rebate for the federal part of the HST is available.
Tip #5: Claim first-time homebuyer tax credit
First-time home buyers’ tax credit can help you save hundreds on the upfront cost of purchasing a home, and you should use it! If you’re eligible, make sure you don’t miss out on these tax benefits.
For more tips on a home purchase, reach out to GSP Chartered Professional Accountant Professional Corporation. As experienced and reliable accountants, we take care of all complex financial tasks so you can focus on other important things in your life. Our services include personal tax, corporate tax, payroll, general accounting, and cloud accounting. We also offer business accounting services for our clients. We serve individuals across Mississauga, Malton, Brampton, Etobicoke, Toronto, Milton, Stoney Creek, Binbrook, Hamilton, Downtown Toronto, Scarborough, Ajax, Richmond Hill, and the surrounding areas.
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