Virgin Vancouver Home Buyers Get a Tax Break

1st Timers

The B.C. government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

Partial Exemption

The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

House on Money

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With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.

The Cost

The government estimates this measure will cost $8 million in lost tax revenue each year.

Funny how the government makes this our fault. There was a time when the PPT didn’t exist. From my perspective it just helps to increase the cost of home ownership.

Pat on the Back

The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years. In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. In 2005, the government increased the threshold to $325,000 from $275,000.

The Math

The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.

The Link

Budget

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

So long Says:
February 18th, 2014 at 9:09 pm

Those virgin buyers will get slaughtered, at this point in time no incentive is worthy enough to purchase a home in the GVRD,Just ask anyone who has bought a condo in the last 5 years .I can name many reasons why now is not time to buy. Can anyone beg to differ?

February 18th, 2014 at 10:07 pm

@so long
Let me ask you a question. Assuming you have no vested interest in virgin welfare, the question begs why do you care? Slaughtered! Unbounded drama methinks.
Put your money on the table. Back your view up with coherent attributable statistical evidence. Make your case in 200 words or less.

Minghui Says:
February 18th, 2014 at 10:27 pm

Good for tomorrow’s buyers, bad for yesterday’s buyers.

Shazy Says:
February 19th, 2014 at 2:31 pm

Watch pricing in most entry level homes i.e. urban condos/suburban townhomes will now adjust upwards accordingly.

This basically creates FTB price support at 475K,

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