Property Transfer Tax exemptions - April 1, 2024
For many, buying a home is the largest purchase they will ever make, and property prices are making it harder. Every little bit helps, and Budget 2024 aims to give people the financial boost they need to bring buying a home within reach, including:
- Increases to the threshold for the First Time Homebuyers’ Program so it reflects today’s market:
- Qualifying first-time buyers can benefit when they purchase a home worth up to $835,000, with the first $500,000 completely exempt from the property transfer tax. That could mean as much as $8,000 in savings.
- An estimated 14,500 people – twice as many as before – will now be eligible for support to buy their first home, helping them move out of the rental market and freeing up rentals for others.
- People buying newly built homes worth up to $1.1 million will also see lower costs through the newly-built-home exemption.
To help lower the cost and encourage the construction of more rental units, eligible purpose-built rental buildings of four or more units will also receive a property transfer tax exemption until 2030.
Raising these property transfer tax exemption thresholds and incentivizing building of new rentals and homes will save more people more money, an estimated $100 million per year.
For information on PTT including a calculator, click here.
BC Home Flipping Tax - Jan 1, 2025
As part of the Homes for People plan, and to discourage speculators from driving up prices, Budget 2024 introduces the new BC Home Flipping Tax, effective Jan. 1, 2025. This will be a tax on the profit made from selling a residential property within two years of buying it, with specific exemptions for life circumstances, such as divorce, death, illness and relocation for work, among others. Revenue from the tax will go directly to building affordable housing throughout B.C.
For full detail on the budget, click here.
Comments:
Post Your Comment: