Newfoundland Labrador 2010 Budget Highlights

March 29, 2010 · Filed Under Newfoundland Economy, Newfoundland Oil and Gas and St. John's General · Comment 

Economic Performance 2009

    • Real GDP declined 8.9%.
    • Employment fell by 2.5% and the unemployment rate increased to 15.5%.
    • Retail sales grew by 2.6% – the strongest performance in the country, with Newfoundland and Labrador being one of only two provinces to record sales growth.
    • Labour income increased by 4.2% – the second best performance among provinces.
    • Housing starts of 3,057; the second highest in 20 years.
    • Capital investment growth ranked fourth among provinces.
    • Personal income growth of 3.9% and disposable income growth of 4.7%.
    • Population of 508,925 as of July 1, 2009, an increase of 0.5% and the largest percentage increase since 1983.
    • Non-resident travel and tourism visitors increased 0.7% to 483,200 with expenditure growth of 1.4% to $375 million.
  • 2010 Economic Outlook
    • Real GDP forecast growth of 4.0%.
    • Employment growth of 2.3% to 219,900.
    • Unemployment rate forecast to decline 0.6 percentage points to 14.9%.
    • Personal income and disposable income growth of 3.9% and 3.3% respectively, aided by wage gains and employment growth.
    • Retail sales growth of 5.0%.
    • Increase in population of 0.5% due to positive net migration.
    • Capital investment expected to increase by 23.0% to $6.2 billion.
    • Housing starts expected to increase 1.5% to 3,102. Residential construction spending of $1.6 billion, an increase of 3.5%.
    • Value of mineral shipments expected to increase about 60%, to $3.1 billion.
    • Total overnight tourist visits expected to increase by 1.3%.

2010 Investments in Infrastructure

Funding for the Conception Bay South Bypass extension, Team Gushue Highway extension and completion of the Torbay Bypass;

2010 Investments in Diversification

More than $126 million in funding for initiatives under the Departments of Finance, Business and Innovation, Trade and Rural Development including:

  • $61 million in tax credits and incentives;
  • $11 million in the Regional/Sectoral Diversification Fund;
  • $2 million in the Aerospace and Defence Development Fund;
  • $1 million for the Innovation Enhancement Fund plus $1 million in the Commercialization Fund, both under the Innovation Strategy;
  • $1 million in the Oil and Gas Manufacturing and Services Export Development Fund as part of a two-year $3 million commitment;
  • $4.9 million under the five-year Oceans of Opportunity Strategy to advance the ocean technology sector; and
  • Other programs including the Small and Medium-sized Enterprise Fund, the Business Attraction Fund, and the Business and Market Development Program.

Tags: , , ,

Tax Deductible Moving Expenses

March 25, 2010 · Filed Under First Time Buyers and St. John's Relocation · Comment 

There are a number of people who transfer jobs and relocate to and from Newfoundland and never realize  that there are tax benefits involved with moving expenses.

If you are preparing to move, it’s best to be informed, so below I have included a quick summary of tax deductible moving expenses provided from the Canada Revenue Agencies website.

Eligible moving expenses include:

  • transportation and storage costs (such as packing, hauling, in-transit storage, and insurance) for household effects, including items such as boats and trailers; traveling expenses, including vehicle expenses, meals, and accommodation, to move you and members of your household to your new residence
  • costs for up to 15 days for meals and temporary accommodation near either residence for you and the members of your household
  • the cost of canceling a lease for your old residence, except any rental payment for the period during which you occupied the residence.

When your old residence is sold as a result of your move, eligible moving expenses also include:

  • legal or notarial fees for the purchase of the new residence, as well as any taxes paid (other than GST/HST or property taxes) for the transfer or registration of title to the new residence, if you or your spouse or common-law partner sold the old residence
  • the cost of selling your old residence, including advertising, notarial or legal fees, real estate  commission, and mortgage penalty when the mortgage is paid off before maturity.

Moving expenses that you cannot deduct include:

  • expenses for work done to make your home more sale-able
  • any loss from the sale of your home
  • the value of items movers refused to take, such as plants
  • frozen food, ammunition, paint, and cleaning products
  • expenses for job hunting in another city (such as traveling expenses)
  • expenses to clean or repair a rented residence to meet the landlord’s standards;
  • expenses to replace personal-use items such as tool sheds, firewood, drapes, and carpets
  • mail-forwarding costs (such as with Canada Post);
  • costs of transformers or adaptors for household appliances;
  • costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved
  • costs for vehicle inspections and/or emissions tests

Be sure to check out Canada Revenues website for updated information, and speak with your accountant.

Tags: , ,

First Time Home Buyers’ Tax Credit

March 24, 2010 · Filed Under First Time Buyers · Comment 

What is the home buyers’ tax credit (HBTC)?

The HBTC is a non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009.  This means the actual closing must be after this date.

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.

Who is eligible for the HBTC?

Taken directly from the Canada Revenue website

You will qualify for the HBTC if:

  • you or your spouse or common-law partner acquired a qualifying home; and
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer.  However, the home must be acquired to enable the person with the disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

What is a qualifying home?

A qualifying home is a housing unit located in Canada acquired after January 27, 2009. This includes existing homes and those being constructed. Single-family homes, semi‑detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings all qualify.  A share in a co‑operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

If I buy a house, can my spouse or common-law partner claim the HBTC?

Either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $750.

My friend and I intend to jointly purchase a home, and we both meet the conditions for the HBTC. Can we both claim the credit?

Either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $750.

Tags: , , ,

New home for sale in Grovesdale Park – 4 Marshall Place

March 22, 2010 · Filed Under New MLS Listings, St. John's Investments, St. John's MLS listings and St. John's Real Estate · Comment 

new listing near mun, avalon mall and health scienceFraser and Stephen Winters have just listed 4 Marshall Place. A hot new listing in Grovesdale Park! This beautiful 3 bedroom, two storey duplex features an eat in kitchen with oak cabinets and patio door leading to a 10×12 deck. Master bedroom includes ensuite and walk in closet. Enjoy the convenience of having a 1/2 bathroom and laundry room on the main floor.  Property is situated in a cul-de-sac on a LARGE lot near MUN, Avalon Mall and Health Science Center. Great opportunity for an investor or first time home buyer.  Asking price: $236,900.  MLS:152286  ** SALE PENDING **

Tags: , , , ,

CMHC Reports St. John’s Area February Housing Starts

March 9, 2010 · Filed Under CMHC Reports · Comment 

ST. JOHN’S, March 8, 2010 – Urban housing starts increased during the month of February, according to preliminary released today by Canada Mortgage and Housing Corporation (CMHC). February’s housing starts totaled 68 throughout the St. John’s area versus 45 starts in February of 2009. There were no additional starts recorded outside the St. John’s area. “February’s brisk residential construction activity was attributed to a combination of continued demand and an unseasonably mild winter month,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Local economic and demographic conditions continue to support new home construction throughout the St. John’s region and the first two months of 2010 indicate a solid start to the year,” added Janes.

Tags: , , ,

Investment property near CONA, MUN and Marine Institute – 156 Higgins Line

March 7, 2010 · Filed Under First Time Buyers, New MLS Listings, St. John's East End, St. John's Investments, St. John's MLS listings and St. John's Real Estate · 2 Comments 

Fraser and Stephen Winters have just listed 156 Higgins Line. An absolutely fantastic 2-apartment home located on the doorstep to Marine Institute, CONA and MUN. Lots of upgrades in recent years including roof, siding,vinyl windows and laminate flooring. 3 bedrooms in the main unit and 2 bedrooms in the basement apartment. Large open concept dining room adjacent to the living room. Master bedroom has a 2 piece ensuite. Large recroom in basement for the main unit living area. Conveniently locate on bus route. Home is situated on a large deep lot (land goes back further then back fence) a rare find in this area. Great investment property!  MLS Number: 151858  Asking price is $269,900. **SALE PENDING**

Tags: , , , , ,

New Listing near Memorial University and Avalon Mall – 12 Keane Place

March 4, 2010 · Filed Under New MLS Listings and St. John's MLS listings · Comment 

**SALE PENDING** Fraser and Stephen Winters have a new listing in St. John’s – 12 Keane Place.  A well cared for multi level, 3 bedroom townhome in an ideal location close to Taxation Centre, Memorial University and Avalon Mall.  New carpet and laminate flooring throughout majority of home. Vinyl windows and vinyl siding.  Eat-in kitchen with door to patio deck. Separate family room on main floor.  Basement is developed. House size is approximately 1500sqft.  MLS Number: 151781 Asking price is $139,900. Could make for an ideal investment property as similar houses in the area have rented for $900.

Virtual Tour of 12 Keane Place – Click here

Tags: , , , ,

Next Page »