So how can the average British Columbian enter the buyer`s market? It seems you have to be a millionaire to be in discussion these days. One possible solution is to own the rental. Perhaps you have heard this term before and were curious to know exactly what it meant. Well, this is your lucky day. We will guide you through the way the rent works in BC. In a typical own rental plan, the buyer and seller sign an agreement that gives the buyer the right to acquire the property at the end of a fixed term at an agreed price. Keven explains: “Let`s assume that the house is worth US$200,000 at the time of signing the rent of his own contract, and that the tenant agrees to buy the house for $200,000 in one year. If this year increases, if the value of the house has decreased, the tenant can leave with his down payment and find a better offer. The owner must now find a new buyer and receive less for the property than if she had sold it a year ago. However, if the market goes up by $10,000 this year, the house is now worth $210,000, but the tenant who reaps all the benefits of increasing the value of the house because he will buy at the agreed price of $200,000. The individual will take possession of the residential complex at the beginning of the contract, but the sale will not be “concluded” and the title will not be transferred until the end of the 24-month period.
The following provisions of the Excise Act may apply: 123 (1) definition of “sale”; 133 agreement as delivery; 152 (2) Consideration for leases; 168 (5) Real Estate Sale; 168 (6) Combined supply; 191 (1) – (3) Self-sufficiency in residential real estate; 191 (2) Self-sufficiency in the event of termination of the sales and sale contract; 254 GST New housing discount; 336 Transitional Provisions Since rental units can provide items without a credit check, they may appear attractive if you have a limited or bad credit history. The agreement is a delivery by lease, a license or a similar agreement for GST purposes. The owner is required to source himself under Section 191 of the Act when ownership of the complex is handed over to the individual. If the individual has the opportunity to purchase the complex, the sale of the complex is exempt pursuant to Section 4, Part I, of Appendix V. The GST discount for new apartments is not available. The agreement between the owner and the individual is considered a purchase and sale agreement. A sale is deemed to be made and the GST is payable in full on the $150,000 (i.e. GST of $10,500) if the ownership of the complex is given to the person as part of the ownership transfer agreement of the complex. If a seller advertises that he is considering a lease-to-own, he will look for someone to rent the house with two contracts.