The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Page THE H ALTON HILLS HOMESTYLE Saturday Decembers 1990 New tax will not apply to all real estate service This article la provided by local Realtors and the Ontario Real Estate Association Tor the benefit of consumers In the real estate market If you re in the market for a new home you should keep in mind that Federal Sales Tax will be a thing of the past after January 1 It will be replac by the Goods and Services Tax GST Although the new tax will be collected at a rate of seven per cent on the sale price of goods and services it doesn t apply to every type of home or every form of real estate service The following information outlines how the new tax will work in the housing market NEW HOMES When you buy a newly con strutted home condominium or townhome the entire purchase price including the land is tax able In southern Ontario where land values are particularly high new home buyers will end up pay ing significantly more GST than the Federal Sales Tax it replaces If you want to rent your new property to tenants the full seven per cent GST charged on the purchase price However if the home is going to be primary residence it may qualify for a partial GS1 rebate depending upon the sale price For homes costing or less you will receive a rebate of per cent of the GST paid to a maximum of This means you pay approximately per cent GST not seven per centl on the purchase price RESALE HOMES You don have to pay GST on the purchase price of a used residential home In other words the purchase is exempt from GST Revenue Canada defines used residential property to include an owneroccupied house con dominium apartment summer cottage vacation property or commercial hobby farm They refer to used as tiaJ property that was occupied as a residence before you bought it Used property can also mean a recently built house that is substantially complete and has been sold at least once before you buy it For example if a new house is purchased and resold before being occupied the home resale price normally be exempt from GST An owneroccupied home is considered a residential property when It used primarily as your residence So if you are self employed and purchase a resale home that includes a room ufd as an office the entire home still qualifies for the GST exemption However if your owner occupied home is not used mainly for residential purposes for ex ample a retail store with a small apartment upstairs on the residential portion is exempt from GST on resale The non residential portion of the pur chase price is taxable If you are planning to purchase a resale home the seller can sup ply you with a certificate stating the proper qualifies as used for GST purposes As with most axes there are exceptions the GST rules regarding resale housing For in stance most sales of real proper by chanties profit organizations and other public service agencies are exempt from GST Contact your realtor for additional information THE REAL ESTATE TRANSACTION GST applies to most of the vices provided in completing the real estate transaction For ex ample seven per cent GST is ap plied to the commission a realtor charges for facilitating a sale The tax is paid by the person responsible for paying the com mission usually the seller Realtor commissions are tax Floral fancy able even if the total GST owed is reduced by a rebate or the sale of the property is exempt from GST For example if you sell a used home the sale price is exempt from GST but the realtor com mission is still taxable GST applies to many other ser vices involved in the real estate transaction These include fees for appraisals referrals surveys and legal assistance Again GST is charged on these fees regardless of whether the house you purchase is exempt from the tax One exception is that mortgage broker fees are exempt from GST if the fees are charged separately from any taxable real estate commissions Additionally mor tgages and interest on mortgages are GST exempt WHEN PAYABLE GST is normally due and payable when the real estate transaction is completed This Is usually referred to as the clos ing date For buyers GST owed on the purchase price of nonexempt property as well as fees and commissions for professional ser vices is paid at closing For sellers GST owed on fees and commissions for professional services is paid at closing Carpet care Homeowners purchasing new stain resistant carpets can ex pect their covering to keep its original beauty for years pro viding they give it regular vacuuming remove spills pro mptly and have the carpet clean ed professionally according to Chris Ramdohr owner of Dry Carpet Care in Brampton Ram dohr cleans carpet with a unique dry system called HOST that has been approved by all the major stain resistant treatment manufacturers The new fibre treatments of fer ease of maintenance says These fibres do not completely eliminate the need to care for their carpet but they make it much easier for homeowners to remove spots and spills It is now possible to get out acid based food and beverage spills that previously would have caused a permanent stain ac cording to Ramdohr Products such as wines fruit juice spills and coffee if addressed prompt ly may no longer create stains and unsightly carpet Homeowners can keep their carpet looking great for years said Barring neglect there should be no reason for the carpet to become ugly from cumulation of spots and stains When cleaning becomes necessary choose the cleaning method carefully All stain resistant fibre manufacturers for note in their guarantees that improper clean can reduce the effectiveness of the stain treatments and Void their warranties Detergent residue left on the fibre treatments also can create pro blems like fast Controlling the amount of moisture when cleaning is another key to keeping carpet looking good throughout its entire life according to who offers the following cleaning tips to carpet owners Blot and blot again With a dry white towel blot wet spills mediately Cover the spill with an absorbent dry cleaner such as HOST working the cleaner through the carpet with a brush or your fingers Vacuum away the cleaner after is dry spills are absorbed into the cleaner or place a layer of paper towels on the spill and weight them down overnight Have carpet cleaned annually The carpet should be cleaned at least once a year to remove the sticky soil that can t be vacuum ed away A dry cleaning system is especially effective for year cleaning no sticky residue is left after cleaning to attract new soil Carpet is clean and dry and can be walked on immediate ly The new stain resistant carpet is more forgiving in that homeowners and professional cleaners have more time to get at accidents said but the critical time still is within the first 24 hours after the spills cur Don t wait titan spills mediately HONEYSUCKLE blossomt on a subtle rose and white ticking stripe create a charming backdrop to this little girl bedroom Shown here as a drapery fabric Laura Ashleys Honeysuckle country furnishing cot ton complemented by a ticking stripe vinyl wallcovering Only 159000 for this Georgetown home that has had thousands spent on siding insulation wiring and new drywall Excellent location and large 72 132 lot Take a walk through with John Hill Sutter