RICHMOND
WEDNESDAY, FRIDAY, NOVEMBER MARCH14, 8, 2017 2014
STEVESTON
info@rew.ca • 604-435-7977
REALTORS® in Real Estate Weekly are working hard for you. Whether buying or selling, check out the newest and most amazing homes listed in your neighbourhood.
R E A L E S TAT E W E E K LY
BC’s First-Time Home Buyers Get a (Small) Tax Break
T
he BC government is raising the threshold for the first-time buyer Property Transfer Tax exemption to $500,000 from $475,000, finance minister Mike de Jong announced February 21 in the 2017 Budget Announcement. The partial exemption threshold has also increased to $525,000 from $500,000. The changes will now aff ect more first-time home buyers by exempting, or partially exempting, those buying between $475K and $525K, and affected buyers will save up to $8,000, which is an increase of $500 from the previous system. The new threshold will be effective for home purchase registrations made on or after February 22, 2017. Minister de Jong said, “This will complement other actions we have taken, such as the introduction last year of a newly built home exemption to the Property Transfer Tax [on new homes under $750,000], which has helped more than 5,500 families save an average of $7,600. In Budget 2017 we are going further.” He added, “When you ask British Columbians about the pressures they face, many will focus on the cost of housing. The problems with housing affordability and availability aren’t easy to resolve, but there are some levers the government can use to help ease things. But… we can’t just focus on getting more people into the market without adding to supply – that’s just going to drive prices higher. “In the coming year the government will also explore and implement opportunities to partner and invest with local governments, to ensure cities and municipalities have the capacity and incentives… needed to expedite and process approvals and permitting of housing development applications.” The province will also continue to administer its recently launched $700 million BC HOME Partnership program, which offers first-time home buyers up to $37,500 in down-payment-matching loans, which are interest- and paymentfree for the first five years.
GO TO
REW.CA /NEWS TO READ THESE STORIES AND MUCH MORE REAL ESTATE NEWS AND ADVICE
Industry Reactions In a press release issued moments after the announcement, the Canadian Home Builders’ Association of British Columbia (CHBA BC) welcomed the increase to the first-time buyer exemption threshold. It added that the organization had recommended such an increase in its pre-Budget submission, “to better reflect rising home prices.” Neil Moody, CEO of CHBA BC, stated, “CHBA BC has advocated for changes to the outdated property transfer tax structure for many years, and this reduction in tax is positive for firsttime home buyers in all areas of the province.
Eight Great Tips to Set Your Home-Buying Budget
“It may seem like a small increase, but it represents that the program is keeping pace with rising home prices. It provides a larger threshold for first-time home buyers to purchase within and receive the tax savings.” The Urban Development Institute also immediately offered its support to the move. President and CEO Anne McMullin said, “Increasing the Property Transfer Tax exemption threshold to $500,000 from $475,000 for first-time homebuyers’ will enable more locals and families to get onto the first rung of
Real Estate Therapist Show: Five Key Takeaways from… Bob de Wit
the property ladder.” She added that the industry group also supports the government’s strong focus on working with local governments in 2017 and beyond to increase housing supply, which also creates more highpaying jobs in the sector. “I know we keep hammering this point, but fl ooding the market with more housing options, from rowhomes and townhomes to duplexes and others, will help alleviate the pricing and demand pressures and create healthy, more affordable communities.” However, the British Columbia Real Estate Association said that, while it supported an increase in the threshold, the change did not go far enough. It argued that the new threshold should have been set at $750,000 – in line with the BC HOME loan program as well as the PTT exemption on new homes.
Photo Gallery: $10.8m West Van Mansion is an Architectural Dream