The Real Estate Board of Greater Vancouver recently issued a News Flash regarding the 2016 BC Budget and its impact on the Lower Mainland’s Housing Market.
The PTT or Property Transfer Tax remains the same for homes that sell below $2 million with 1% applied to the first $200,000 and 2% on the balance. For homes that exceed $2 million the rate increases to 3% on the portion of fair market value over $2 million.
Exemption levels have also been raised on newly built homes or subdivided units (from $450,000 to $750,000) saving buyers up to $13,000; likewise a partial exemption can be applied on newly built homes priced from $750,000 to $800,000.
Darcy McLeod, The REBGV President commented, “While we applaud the government’s efforts to improve affordability for home buyers purchasing new housing, there’s more work to be done.” The province did announce plans to invest $355 million to help the BC Housing Management Commission to support more than 2000 new affordable housing units for residents with low-to-moderate incomes.
“Data collection is perhaps the most significant change in policy,” said London Pacific’s Keath Williams, “We don’t have the facts to address concerns and assumptions regarding the volume of foreign investment, so the Province wants to start tracking this.” As of Summer 2016, individuals and corporations buying property must disclose if they are Canadian citizens or permanent residents of Canada and if not they must disclose their home country.
For more information on the 2016 BC Budget please visit the provinces website HERE