- The threshold for property transfer tax exemption for first-time home buyers has been lifted from properties worth half a million dollars to $835,000 as of April 1, 2024. Properties with a fair market value of less than $500,000 are completely tax-free.
- Newly constructed homes worth less than $1.1 million will also see a property transfer tax exemption on April 1, raising the threshold for the tax break from $750,000. The Budget estimates that the number of buyers eligible for the exemptions will double, to about 14,500 people each year, with a maximum savings of $8,000 on a single purchase.
Property Transfer Tax Exemptions: The 2024 budget introduces several changes to the Property Transfer Tax exemptions:
1. First-Time Homebuyers’ Program: The threshold for this program has been increased to reflect current market conditions. Qualifying first-time buyers can now benefit from a complete exemption on the first $500,000 of homes valued up to $835,000, potentially saving up to $8,000. According to the BC Government, this expansion is expected to make approximately 14,500 more individuals eligible for support in purchasing their first homes.
2. Newly Built Homes: Buyers of newly built homes valued up to $1.1 million will also see reduced costs through a newly implemented exemption.
3. Purpose-Built Rental Buildings: Eligible purpose-built rental buildings with four or more units will receive a property transfer tax exemption until 2030.
The BC Government estimates that adjustments to property transfer tax exemptions will save individuals approximately $100 million per year.
BC Home Flipping Tax: Starting from January 1, 2025, the BC Government is introducing the BC Home Flipping Tax as part of the Homes for People plan. This tax aims to deter speculators from inflating property prices by taxing profits made from selling residential properties within two years of purchase. There will be specific exemptions for life circumstances such as divorce, death, illness, and relocation for work. Revenue generated from this tax will be allocated towards building affordable housing across the province.
BC Builds: Budget 2024 allocates $198 million in new funding for BC Builds, a program that supports the development of new housing suitable for middle-income individuals and families. BC Builds utilizes government-owned and underused land, as well as lower borrowing rates, to offer low-cost financing for construction projects. By streamlining the development process and working closely with various stakeholders, BC Builds aims to deliver affordable housing within 12 to 18 months, significantly shorter than the current average timeframe of three to five years. These new units will be income-tested, ensuring that they remain affordable for middle-income earners, thereby addressing the housing needs of BC communities.
Our ongoing efforts: Our Government Relations Committee is actively reviewing these measures and continues to collaborate with industry partners to advise on housing policy that meaningfully supports homeownership and housing affordability in BC.
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ABOUT LIZ PENNER YOUR BEST LANGLEY REAL ESTATE AGENT
I am Liz Penner, a top-selling licensed real estate salesperson with the Fraser Valley Real Estate Board, and I have been a leading realtor specializing in the residential resale of condos, townhomes, and houses for over a decade. I assist residents of the Langley and Surrey areas in selling real estate while prioritizing the client’s best interests. I also help first-time homebuyers, families, and repeat purchasers in their property search process, ensuring that my clients gain access to the very best homes on the market while receiving excellent service, guaranteeing they find the perfect place to call home.
I hold a BBA in leadership and have completed various specific training programs through the Fraser Valley Real Estate Board in the areas of selling strata properties, foreclosures, estate sales, and new construction properties. I am also well-versed in POAs, the Strata Property Act, and more. If you are looking for a knowledgeable and professional real estate agent willing to do everything possible to ensure that you get top dollar for the sale of your home or to find the dream home you are looking for in the Surrey and Langley, BC areas, then get in contact today.
