But I believe that this time, I can make a stronger case for you, rather than just the age-old reason "because no one can predict the future and the market might be worse later than it is now". Who's got that crystal ball, right?
And now you're asking what makes me think that *this* time is any different?
Well, a number of reasons, actually. A recent new law bringing the HST into effect in mid 2010 plus some recent articles in the media have prompted me to advise my clients, past clients and prospects that this next 3-6 months would be worthwhile in terms of putting more money in their pockets.
Reason #1 - HST is definitely coming - There's no longer a chance that it will go away. Despite pressure against the government from a number of sources, including the real estate segment, it was just recently passed into law and comes into effect in mid-2010 (June?).
(Note: This is not a condemnation nor endorsement of the HST. It's an acknowledgement that it's now on the way and here's how you, the consumer, can benefit in the short term.)
How does it affect the real estate segment? Well, it means that in addition to GST, now PST will also be tacked on to real estate costs such as Realtor commissions, home inspections, legal fees, and all those other trades/skills that people use, either in a real estate transaction or before or after it, including cleaning services, painters, gardeners, moving companies, handymen services etc. - any of these kinds of services that you could have used either to spruce up your house before selling or just after buying - they're all going to cost you 8% more with HST.
Combined, it adds up to almost a couple thousand dollars just in the additional taxes coming out of your pocket.
Selling a $400,000 house is going to cost you about an extra $1,700 in PST charges alone!
Wouldn't you rather save that $1,700 and use it to hire a painter to paint your new house? You can get quite a nice patio set at Costco in that price range.
And you can, just by selling your house before that HST kicks in!
Reason #2 - the feds plan to tighten the money supply!
It was in today's media- The Star
- The Globe (1) - observers warn of the risks
- The National Post - Flaherty ready to deflate any bubble
"But Steve...", you start to say, "...we've got more than 5% down and don't need a 35-year amortization, so it doesn't really apply to us". Well, maybe not to you as a buyer - but if it's going to dry up or reduce the number of buyers out there competing to buy YOUR house, doesn't that matter to you?
Of course it does!
If the government were planning to stifle the buyers' market out there, and reduce the competition for your house (which could translate into you getting less money for your house), wouldn't you want to get the best bucks for your house and sell before the government steps in?
I know I sure would!
I want to help you get the best possible price for your house and that's exactly why I'm advising that listing it as soon as possible in the new year is in your best interests (rather than delaying it). It's more money in your pocket in several ways
- Reducing the amount you pay in taxes by selling/buying before mid-2010 and
- Selling before the government tightens or even kills the buyers' market through mortgage and interest changes
- Capitalizing on the surge of available buyers, who themselves, are likely sellers and want to save a few bucks, too!
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