|25 Water Walk Dr #128||1 Bed: 600-699 sq.ft.||Included||Included||May 2018||$1,800|
|33 Clegg Rd #910||1+Den: 600-699 sq.ft.||Included||Included||Immediate||LEASED|
|9205 Yonge St NE-708||1 Bed: 514 sq.ft.||Included||Included||Immediate||LEASED|
|9506 Markham Road #1801||1 + Den: 690 sq.ft.||Included||Included||Immediate||LEASED|
|55 Oneida Cres #1207||1 + Den: 600-699 sq.ft.||Included||Included||Immediate||LEASED|
|128 Fairview Mall Dr #907||1 Bed: 0-499 sq.ft.||Not Included||Included||Immediate||$1,750|
|128 Fairview Mall Dr #503||1+Den: 500-599 sq.ft.||Not Included||Not Included||Immediate||$1,950|
|555 Wilson Ave #1005||1+Den: 600-699 sq.ft.||Not Included||Included||June 1, 2018||$1,950|
|31 Bales Ave #2515||1+Den: 600-699 sq.ft.||Not Included||Included||Immediate||LEASED|
|128 Fairview Mall Dr #904||1+Den: 500-599 sq.ft.||Included||Included||Immediate||LEASED|
|195 Bonis Ave #904||2 Bed: 700-799 sq.ft.||Included||Included||Immediate||LEASED|
|128 Fairview Mall Dr #218||1+Den: 500-599 sq.ft.||Not Included||Included||Immediate||LEASED|
|51 Lower Simcoe St #503||1 Bed: 500-599 sq.ft.||Not Included||Not Included||Immediate||LEASED|
|68 Shuter St #602||1 Bed: 500-599 sq.ft.||Not Included||Not Included||Immediate||LEASED|
|199 Richmond St W #2003||1 Bed: 500-599 sq.ft.||Included||Not Included||March 15, 2018||LEASED|
|2200 Lakeshore Blvd W #1108||1+Den: 600-699 sq.ft.||Included||Included||Immediate||LEASED|
|51 East Liberty St #815||1 Bed: 507 sq.ft.||Not Included||Not Included||March 5, 2018||LEASED|
When you purchase a pre-construction condo, you often come across the statement “Prices include H.S.T.”, while this is a true statement, there is a deeper meaning to it and requires different actions from condo end-users and investors. We know that HST is 13% in Ontario and it should be broken down into 2 portions: 1) the Non-Rebatable Portion and 2) the Rebatable Portion. The non-rebatable portion is approximately 5.2% of the net purchase price and the rebatable portion is approximately 7.8% of the net purchase price, for a total of 13% HST.
How are the portions calculated?
Net Purchase Price = Purchase Price – Non-Rebatable Portion of HST
The net purchase price is calculated using a set of formulas from the CRA depending on the range that the purchase price falls into. Let’s do an example:
Purchase Price = $319,400
Net Purchase Price = $319,400 / 1.052 (CRA formula) = $303,612.17
Total HST = Net Purchase Price * 13% = $39,469.58
Non-Rebatable Portion of HST = Purchase Price – Net Purchase Price = $15,787.83
Rebatable Portion of HST = Total HST - Non-Rebatable Portion of HST = $23,681.75
This means that when we purchase a condo of purchase price of $319,400 from a developer, the price has already included $15,787.83 of HST, which is the non-rebatable portion of the HST.
Who can be qualified to claim the Rebatable Portion?
What is the purpose of this rebate process?
Essentially, you just pre-pay the HST and get the rebate back, so what’s the point of this rebate process? The purpose is to discourage condo flippers. If you flip your condo (sell it within 1 year of final closing), then you are NOT qualified to claim the rebate. We also believe that a healthy condo investment should be to buy and hold.
Is there a time limit to file the HST rebate?
You have up to 2 years from the final closing date to file the HST rebate.
What is the charge for filling out the HST rebate application?