2008 B.C. Budget: Effect on Vancouver B.C. Real Estate

Greening our province and encouraging individuals and businesses to make environmentally responsible choices is the purpose of this budget.

They giveth and they taketh away

Revenue neutral carbon tax

Increase the cost of all fossil fuels – gas, diesel, natural gas, coal, propane and home heating fuel.

Taketh

Phased-in tax increase of 2.41 cents per litre for gas rising to 7.24 cents per litre by 2012.

Giveth

The increase will be offset with a $100 cheque.

Notable

• PST exemptions for energy star appliances, energy efficient residential gas fired water heaters and insulation for hot water tanks, pipes and duct work
• Renovations will be enhanced by incentives for energy audits and retrofits to bring down home energy costs
• Reductions in personal income taxes, small business taxes and corporate taxes are all in the mix to keep BC competitive
• Expansion of the Provincial nominee program to attract more skilled workers and entrepreneurs to BC
• Funding has been set aside to create a green building code

First Time Buyer

• The Property Transfer Tax (PTT) exemption threshold has been increased to $425,000 from $375,000.
• Removal of the financing rule, which required them to have at least a 70 per cent mortgage to qualify for the exemption. They can now pay down their mortgages by any amount in the first year of ownership without losing entitlement to the exemption.

This a good thing for some first time buyers but, my search of the MLS® didn’t reveal a great number of single family homes homes west of Boundary road for $425K that didn’t need another $100K to make them livable.

My Green Thought

Vancouver Real Estate’s high cost for land and housing also needs a serious green boost. Let’s get greener by maximizing the use of this precious land and move back the future of eco-density by allowing the return of full basements in new home construction. It means better utilization of scarce land, an increase in the number of reasonable rental suites which when properly built are safer and comfortable. Individually, it’s an environmentally responsible choice for land use while to helping to keep more green in your pocket to pay the mortgage and property taxes.

Please correct me if I’m wrong!

Wasn’t it Carol Taylor who championed the elimination of secondary suites initiating the partial basement rule to new home construction?

Got a Vancouver Real Estate question? I’ll do my best to answer it. Call or send me an email.

Larry