Kookaburra Lodge - How To Own
Sun Peaks Background
Ski Canada Magazine 2009 Awards
Best Race Training Centre
Best Kids' Terrain Park
Best Ski-in/Ski-out Village
Best Alpine Resort in Summer
Sun Peaks has a long development program ahead and potentially offers the finest true alpine village in Canada. The growth of Kamloops, the improvement of its airport and university and the prospect of a connecting east-road to Chase will continue to support this 4-season playground destination.
A recent Conde Nast survey of Ski Resorts in North America (the largest survey of its type) rated Sun Peaks #2 in Canada and #10 in North America. Given the reliability of snow quality at Sun Peaks and the conservative development of its real estate, Sun Peaks offers an exceptional opportunity to purchase in a world class resort that’s only half way through its development cycle. Unlike more mature resorts throughout North America, Sun Peaks has only just entered into the 2nd phase of a 4 phase master development plan with 500+ million already spent on infrastructure by the Resorts owners, Nippon Cable. This is the “perfect storm” for purchasing real estate! The majority of the infrastructure is already complete and future development is managed by the Sun Peaks Resort Corporation to ensure supply levels remain sustainable and demand stays high. This winning formula will continue to create strong ownership demand in Sun Peaks for the next 15 -19 years.
Ownership in Canada
Non-Residents Buying Canadian Real Estate
There are no restrictions for non-residents purchasing real estate in Canada, though they may become subject to Canadian income tax laws, and will certainly encounter the following taxes on their transactions:
1) Property Transfer Tax (British Columbia) – The tax rate is one per cent on the first $200,000 of the property's fair market value and two per cent on the remaining fair market value. For more information, visit the Government of British Columbia’s Property Taxation Branch’s website at www.rev.gov.bc.ca/rpt.
2) Goods and Services Tax (Canada) – The 5% GST applies to the purchase price of newly constructed and substantially renovated homes.
3) Property Taxes (municipal) – If the seller has already paid the full year’s property taxes to the municipality, the buyer will have to reimburse them for the remainder of the year’s taxes.
Title and BC Law
British Columbia uses a modified Torrens system of registering land throughout the province. This means that in the Land Registry the name registered as the owner of the property is guaranteed by the government to be the legal owner. There is no need to search the root of title. There are no clouds on the title that are not in the Land Registry.
The Buyer's lawyer or notary prepares or oversees all legal work to complete the transaction. The mortgage registration, the Statement of Adjustments (for settling all outstanding balances of taxes and fees payable), registration of title are responsibilities of the lawyer or notary. An experienced real estate lawyer can be helpful in having the transaction close with no problems.
Residence Status and Income Tax
If non-residents stay in Canada for more than 182 consecutive days, they may be considered Canadian residents for Canadian income tax purposes.
Non-residents of Canada pay tax on income received from sources in Canada. The type of tax paid, and the requirement to file income tax returns, depends on the type of income received.
Canada has tax treaties with many countries, including the United States. A tax treaty is designed to avoid double taxation for people who would otherwise pay tax on the same income in two countries.
- Non-Residents, Canada Customs and Revenue Agency
- Tax Treaties, Canada Customs and Revenue Agency
Purchasing at Kookaburra Lodge, Sun Peaks
- Upon choosing your new home, a Contract of Purchase & Sale will be completed and signed by both the buyer and Vendor. A sample agreement can be found on our website atwww.Kookaburralodge.ca/Disclosure/
- A total deposit of 15% will be required once the Contract of Purchase and Sale has been accepted by the Vendor. Deposit funds can be couriered or wired directly to Gillespie Renkema Barnett Broadway LLP where funds will be held “In Trust” until the completion of your new home. Our lawyers mailing address and contact info can be found in Paragraph #2 of the Contract of Purchase & Sale.
- A full Disclosure Statement of the Kookaburra Lodge development can be reviewed online at www.kookaburralodge.ca/Disclosure/
- No additional funds will be required until completion
Usage and Management
For owners who purchase at Kookaburra lodge and are looking to rent their home, a management agreement is being negotiated with a leading local residential manager. This management agreement will be finalized and in-place for when occupancy occurs later this year. The responsibilities of the onsite rental manager will be to handle day to day matters related to promotion, bookings, cleaning and maintenance. With no restrictions on the amount of personal usage, rental income is not pooled and specific to the arrangement negotiated by each owner with the rental management company. Any income generated through rental of an owner’s home will be deposited into their Canadian bank account based on the previously negotiated terms of each individual agreement. The owner’s who participate in the rental management program will need to file an annual tax return which can be easily and inexpensively prepared by a qualified Canadian tax agent. All this administration and documentation will be facilitated and provided by the Rental Manager. The Developer will have no ongoing interest in the proposed management company.
For additional information, please visit the Canadian Revenue Agency- http://www.cra-arc.gc.ca/menu-eng.html
TD Bank is offering LVR’s between 25% – 35% for non-Canadian residents looking to purchase in the Kookaburra Lodge at very competitive rates. TD will require the following information from non-Canadian residents looking to secure a mortgage for their purchase at the Kookaburra Lodge.
- Will require the purchasers proof of income via ( T4 equivalent 2007-2008)
- If the purchaser is self employed the purchasers businesses most recent financial statement will be required.
- A credit letter from the Financial Institution that holds the majority of the purchaser’s assets.
- A new TD mortgage application form.
- Assets of the purchaser, including statements showing as many assets as possible (stocks, bonds, cash savings etc.) ensure the statements show ownership and are current (Much of these can be found via the Internet).
- Signed credit authorization form.
- Kookaburra Purchase Agreement.
- Floor Plan of the purchaser’s new home at the Kookaburra Lodge.
Canada Revenue Agency - http://www.cra-arc.gc.ca/menu-eng.html