Government reduces tax burden on first-time buyersFirst-time home buyers received welcome news in today’s provincial budget. Any REALTORS® currently working with first-time buyers will want to share this news with them as soon as possible.
The 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.
The partial exemption continues and will apply to homes valued between $475,000 and $500,000. 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 government estimates this measure will cost $8 million in lost tax revenue each year. 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 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.
Here is a link to the Budget.: http://www.bcbudget.gov.bc.ca/2014/default.htm
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Great news for First-Time Home Buyers regarding Property Transfer Tax.
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Great news for First-Time Home Buyers!
The government has raised the Property Transfer Tax exemption threshold from $425,000 to $475,000.
Property Transfer Tax is calculated at a rate of 1% on the first $200,000 and 2% of the remaining value of the purchase price. Qualifying first-time home buyers will not have to pay this tax if the price of the property is less than $475,000. That’s a tax savings of up to $7500!
This is perfect timing for many people wanting to get into the market. I will explain this in greater detail and many other tips at my real estate seminar for First-Time Home Buyers on March 15, 2014. Do you know anyone thinking about buying a property? If so, this 2 hour seminar is a must.
Just released from the Greater Vancouver Real Estate Board, February 18, 2014: