Conservative government reports a surplus of $9.7-billion

[jolinar of malkshor]

All this surplus better go to paying down the debt. The conservatives better real in their spending habits for the future. 5.2% increase from the previous year is far to much.

http://www.canada.com/nationalpost/f...490d81&k=10738

[Azure]

Not bad.

Heh!

[SeeGeeWhy]

Hookers and blow for everyone!

But wait... who will be the hookers for the hookers?

[Nufy]

Watch em give themselves a well deserved pay raise........

[Sylvanfan]

Maybe they should index the thresholds for GST rebates on new housing....In 1991 not many places in Canada cost more than 350k and 450 was really really high end. In 2007, theres a lot of markets now where average house price is above the 450k threshold. Considering they said they'd idex those number with inflation too when they came out with the GST....

[Flash Walken]

Originally Posted by Sylvanfan

Maybe they should index the thresholds for GST rebates on new housing....In 1991 not many places in Canada cost more than 350k and 450 was really really high end. In 2007, theres a lot of markets now where average house price is above the 450k threshold. Considering they said they'd idex those number with inflation too when they came out with the GST....

I'm not quite sure what you mean, could you explain it a bit further?

[Tron_fdc]

Originally Posted by Flash Walken

I'm not quite sure what you mean, could you explain it a bit further?

I think Syl is referring to a cap on the amount of GST you would pay on the purchase of a home. They're obviously making a lot more money on homes than they did back in the 90's due to higher purchase prices.

[Flash Walken]

Originally Posted by Tron_fdc

I think Syl is referring to a cap on the amount of GST you would pay on the purchase of a home. They're obviously making a lot more money on homes than they did back in the 90's due to higher purchase prices.

Ah.

Would that be a hard dollar figure, percentage of the worth of the property (up to a cap) or some kind of combination? (general question to those who feel like responding)

[Sylvanfan]

On a new home that is your primary residence and costs 350k or less you can get a GST rebate of 36%. Essentially on a new house up to 350,000 in value you pay a GST of 3.84%. How it works it that your maximum GST rebate is caped at 36% of 21600 tax (6% of 350k) which totals $7560 (essentially 350x.06x.36). So a 350k house with GST is 363440.

Now for every $1000 of value above 350k, your maximum rebate number comes down. So for example on a 400k house you pay the full 6% tax which is 24 grand. But your rebate is 50% of the $7560 amount or $3780. So on $400k house you would pay $21220 in GST or 5.3%. So essentially in that 50k price difference you're paying an extra $7780 in tax. So the real cost of that 50k difference on a new home isn't 50k or 53k with tax, but more like 58. At 375 k you paid 391830 total or 4.49%GST, and at 425k it's 5.56% GST you pay. Most builders are hiding these numbers in their costs, but I think it's a factor in why costs shot up as much as they did. Not only was the price of the house increasing, but the tax at 350 is on an imbalanced curve until the price reaches around 400k.

The thing is that in 1991 when they devised these values it maybe applied to 10% of the houses in the country. Now days when you consider that Toronto, Vancouver, Edmonton, and Calgary which represent 5 of Canada's 6 largest markets boast an average house price above that 350k threshold, they should adjust that number for GST on new housing to be like 650k. Take that 350k number index inflation at 4% and thats the amount you end up with. Back in 1991 they said they'd index that with inflation.

[Flash Walken]

Originally Posted by Sylvanfan

On a new home that is your primary residence and costs 350k or less you can get a GST rebate of 36%. Essentially on a new house up to 350,000 in value you pay a GST of 3.84%. How it works it that your maximum GST rebate is caped at 36% of 21600 tax (6% of 350k) which totals $7560 (essentially 350x.06x.36). So a 350k house with GST is 363440.

Now for every $1000 of value above 350k, your maximum rebate number comes down. So for example on a 400k house you pay the full 6% tax which is 24 grand. But your rebate is 50% of the $7560 amount or $3780. So on $400k house you would pay $21220 in GST or 5.3%. So essentially in that 50k price difference you're paying an extra $7780 in tax. So the real cost of that 50k difference on a new home isn't 50k or 53k with tax, but more like 58. At 375 k you paid 391830 total or 4.49%GST, and at 425k it's 5.56% GST you pay. Most builders are hiding these numbers in their costs, but I think it's a factor in why costs shot up as much as they did. Not only was the price of the house increasing, but the tax at 350 is on an imbalanced curve until the price reaches around 400k.

The thing is that in 1991 when they devised these values it maybe applied to 10% of the houses in the country. Now days when you consider that Toronto, Vancouver, Edmonton, and Calgary which represent 5 of Canada's 6 largest markets boast an average house price above that 350k threshold, they should adjust that number for GST on new housing to be like 650k. Take that 350k number index inflation at 4% and thats the amount you end up with. Back in 1991 they said they'd index that with inflation.

That is very interesting, thanks for taking the time explain it.

[GreenTeaFrapp]

Originally Posted by Sylvanfan

Now days when you consider that Toronto, Vancouver, Edmonton, and Calgary which represent 5 of Canada's 6 largest markets

Are you sure?

[Sylvanfan]

Originally Posted by GreenTeaFrapp

Are you sure?

No, 4 of 7 I suppose as Ottawa is in that mix in terms of size of city with Calgary and Edmonton. But the 4 places I mentioned all have high average house prices in that range where GST rebate no longer is.
Either way in 1991 a $350k house or more was a nice piece of real estate pretty much anywhere in the country. You could buy a good piece of property in the Lower Mainland of B.C. for that amount. Today I don't think you can buy a detached residents with land in Langley for that let alone a decent place somewhere closer to the water.

[Flash Walken]

Originally Posted by Sylvanfan

No, 4 of 7 I suppose as Ottawa is in that mix in terms of size of city with Calgary and Edmonton. But the 4 places I mentioned all have high average house prices in that range where GST rebate no longer is.
Either way in 1991 a $350k house or more was a nice piece of real estate pretty much anywhere in the country. You could buy a good piece of property in the Lower Mainland of B.C. for that amount. Today I don't think you can buy a detached residents with land in Langley for that let alone a decent place somewhere closer to the water.

I think he meant you saying '5 of the top 6' but only listing 4 cities.

I know, what a total jackass.