As Canadians we will begin to wrap our minds around the Canadian federal budget announced today and as we do we will see a couple of things that jump out from the stand point of real estate. Of course at AltaPacific MIC we like all things pertaining to real estate!
Are you a Canadian that is interested in renovating or improving your existing home? The budget’s most notable measure from a personal finance perspective is the temporary new Home Renovation Tax Credit, which would be available to people who spend money on goods or work on their home before Feb. 1, 2010. The nuts and bolts of this tax credit: you would claim a 15-per-cent credit against spending of more than $1,000 and capped at $10,000, with a maximum credit of $1,350.
Are you a Canadian first time home buyer? As well, first-time buyers will be able to make greater use of the federal Home Buyers’ Plan, which allows tax-free withdrawals from registered retirement savings plans for the purpose of buying a first home. The new withdrawal limit would be $25,000, up from $20,000.
Read the full article here
Summary of the budget is here
The full budget page is here
From our perspective at AltaPacific MIC, it is encouraging to see the Federal Government considering home ownership as an important part of Canadian livelihood. Owning, maintaining and improving a home is important to Canadians and now there are incentives for all three. Starting with a tax credit that gives an incentive to those considering a fix up or renovation between now and February 1, 2010; and carrying on to incentives that help Canadians free up a larger portion of RSP savings for first time home ownership.
Like investing in Canadian real estate or investing in Canadian mortgages, first time home ownership is a vital step for Canadians. Allowing RSP investors to increase their withdrawal limit from $20,000 to $25,000 feels like a logical and important forward step as housing prices have increased steadily over recent years. I’m sure we all remember our first home purchase and the excitement that came with it; so getting more Canadians into homes is exciting for all of us.
Perhaps you are already a home owner and feeling comfortable with your savings and investments, but looking for a better choice for more healthy returns. You may want to consider investing in Canadian mortgages through a company like Alta Pacific Mortgages. Diversify your portfolio of investments and include in it a “mortgage pool” with other investors who believe in investing in Canadian real estate. Contact us if you’re like to learn more.
