First-Time Home Buyers in Vancouver (and all over BC) are now going to get a break from the Provincial Government that could put up to $7500 back into their pockets.
In the recent Budget tabled by the BC Liberal party the tax burden was reduced for first-time buyers. Effective immediately, the First-Time Home Buyers’ Exemption program, for the Property Transfer Tax (PTT), will allow First-Time Buyers to purchase a home up to $475,000 without paying any PTT.
The previous threshold for first- time home buyers to qualify for exemption from paying the PTT was for a property bought valued up to $425,000. The current government has lifted the exemption ceiling by $50,000, for properties with a purchase price up to $475, 000. If you bought a home for $475,000 before, you would have paid $7500 to the government. Now you get to keep that! After $475,000 the tax will blend in (as it did before up to $500,000) where you will again pay the full amount at $500,000.01 which is 1% tax on the first $200,000 of your purchase and 2% on the balance.
Thanks should be offered to The Real Estate Board of Greater Vancouver (REBGV), together with the BC Real Estate Association, who actively lobbied to make home ownership more affordable for First-Time Home Buyers. If you would like more information on their lobbing efforts, with the government, you can contact Harriet Permut, Manager, Government Relations with the REBGV at email@example.com
**Just my two cents but the government claims that there will be $8 million dollar loss in revenue annually, which I do not doubt. Consider when you look at how much prices have appreciated in the last decade they are clearly still making good revenue off of the tax payers, especially with the PTT here in Vancouver!
Here is a link to the Budget.: http://www.bcbudget.gov.bc.ca/2014/default.htm