A recent Vancouver Sun column by Peter Simpson, former head of the Greater Vancouver Home Builders’ Association, talked about the fact that about one-third of homeowners in BC are delaying home renovations until April 1, 2013, when the hated HST will be revert back to a 7% PST and a 5% GST. When that happens, labour for home renovations will once again be untaxed. As was the case before B.C. introduced the HST.
But Simpson says that renovators can do three things to persuade prospective customers not to wait, like so many others, for the April 1 date.
One, you can remind them that interest rates are very, very low, and are quite likely rise. So it may cost more money to finance a renovation after April 1 of next year.
Two, Simpson wrote, you can remind them that building material costs in Canada are likely to increase soon, because the US housing industry is bouncing back – and manufacturers of building products are spending lots of money in advance of the recovery.
And three, Simpson said, renovators can remind customers that there will be a shortage of contractors after April 1, when everyone will want to begin their delayed renos. That shortage will drive prices upwards.
Wise words, Mr. Simpson. Worth a try if you’re a B.C. contractor frustrated by customers who keep telling you they want to wait until April Fool’s Day to sign that contract.