Pammi Brar
RE/MAX Real Estate (Mountain View)
401,9650 HARVEST HILLS BLVD.NE, Calgary, Alberta
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Thursday, May 27, 2010 - B.C. developers taking aim at Alberta property buyers ahead of HST-calgary herald

CALGARY - Recreational property developers in B.C. are targeting potential Alberta homebuyers prior to the province's introduction of the harmonized sales tax on July 1.

"We're doing absolutely everything we can to reach out to those who have shown interest in purchasing property in the area by letting them know postponing could cost them tens of thousands of dollars," said Frank Kernick, developer of Copperside at Lakeview Meadows in Invermere, B.C. "Regardless of the development, second-home property in British Columbia will cost seven per cent more as of July 1."

His organization is focusing resources on educating potential buyers on the financial impact of the HST on real estate investments in B.C.

As an example, purchasing one of 10 luxury condos available at the Copperside project after July 1 will cost buyers between $35,000 to $50,000 more as a result of the HST. The condos range in price from $529,000 to $749,000.

Kernick said Albertans aren't really aware of the additional tax.

"We've had a lot of people sitting on the fence in the last two years with the world economy. Recreational property is discretionary spending," said Kernick, who added he's seen an increase in interest in the past two weeks.

Kernick said he suspects most developments are already working on plans on how to deal with the repercussions of the tax.

Purchasing recreational property in B.C. has been an attractive real estate option for many Calgarians, particularly in recent years.

Albertans are quickly becoming the dominant group of homebuyers at Revelstoke Mountain Resort. In the past six months, 50 per cent of the resort buyers were from Alberta.

Mike Vopni, director of sales and marketing with Sotheby's International Realty Canada at Revelstoke Mountain Resort, said the HST is weighing on some buyers' minds.

"I know we have a couple of Albertans who are looking to purchase very soon, before the HST kicks in. I wouldn't be surprised if we see a couple of last-minute sales happen before," said Vopni. He said there might be some reluctance to purchase after July 1, but for the resort, its peak selling season is during the winter.

Calgary-based developer Sam Boguslavsky, of Sable Resorts, is offering suites at Legacy on Mara Lake in B.C. tax-free, if buyers are able to close prior to the July 1 deadline.

Legacy homes range in price from $300,000 to more than $1 million.

"We had an extremely successful weekend," he said. "Basically we've taken the tax right out. . . . It's my little protest, if you wish, against new taxes.

"The May long weekend is always an indication of what the summer will bring. The economic climate that I witnessed is people are a lot more optimistic and they're looking for unique projects."

 

posted in News at Thu, 27 May 2010 11:35:10 -0600



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