Government reduces tax burden on
first-time buyers
First-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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