1. Housing Costs Math 11 E

2. HST Pay it when you buy a new home Pay it when you buy a new home Don’t pay it when you buy a “used” home Don’t pay it when you buy a “used” home

3. Total cost Brian bought a new home with a purchase price of $209,500. How much did it cost in total (ignoring transfer fees, etc)? Brian bought a new home with a purchase price of $209,500. How much did it cost in total (ignoring transfer fees, etc)?

4. Total Cost Brian bought an old home with a purchase price of $209,500. How much did it cost in total (ignoring transfer fees, etc)? Brian bought an old home with a purchase price of $209,500. How much did it cost in total (ignoring transfer fees, etc)?

5. Maintenance What might you need to fix in your house? What might you need to fix in your house? Roof Roof Replace windows Replace windows Landscaping Landscaping Siding Siding Paving Paving Painting inside Painting inside Remodel rooms in house Remodel rooms in house

6. Maintenance A guideline is to put away 2% of the purchase price per year for maintenance and repairs A guideline is to put away 2% of the purchase price per year for maintenance and repairs

7. How much? $145,000 $145,000 $211,000 $211,000 $235,000 $235,000

8. Down Payments You have to pay 5% of the purchase price You have to pay 5% of the purchase price How much would you pay for… How much would you pay for… $120,000 $120,000 $324,345 $324,345 $274,500 $274,500

9. Gino and Maria bought a resale town house for $134,000. They paid a deposit of $3000 at the time of closing and another $34,000 for the down payment. Gino and Maria bought a resale town house for $134,000. They paid a deposit of $3000 at the time of closing and another $34,000 for the down payment. What was the total down payment? What was the total down payment? How much of a mortgage did they require? How much of a mortgage did they require? How much GST did they pay? How much GST did they pay?

10. Land transfer tax Depends on the purchase price Depends on the purchase price Up to $250,000 – 1% of purchase price Up to $250,000 – 1% of purchase price Between $250,000 and $400,000 – 1.5% Between $250,000 and $400,000 – 1.5% Above $400,000 – 2% Above $400,000 – 2% How much do Gino and Maria pay? How much do Gino and Maria pay?

11. Property Tax Paid to the town for things like garbage collection, public transportation, police and fire, libraries, parks, etc. Paid to the town for things like garbage collection, public transportation, police and fire, libraries, parks, etc. Every town has a different rate. Every town has a different rate. Calculate the property tax for each home owner: Calculate the property tax for each home owner: 1.0002% of $144,000 1.0002% of $144,000 1.056% of $258,000 1.056% of $258,000