policy
ENCOURAGING AND DISCOURAGING PROPERTY TRANSFERS On February 22, 2024 the BC Government
(as we noted first-time buyers’ share of purchases have been dwindling).
announced two more policy changes specifically related to taxes on housing. First, the property transfer tax exemptions were amended, where the first-time home buyers’ exemption threshold was increased from $500,000 (where it had been since 2017) to $835,000, with partial exemptions to $860,000, effective April 1, 2024. The newly built home exemption also increased for principal residence purchases, from $750,000 to $1 million with partial exemptions to $1.15 million. This policy change makes sense, as values have risen substantially since 2017 (in the Vancouver Region, values have risen between 34% and 60% depending on the home type), and will likely bring a small increase in demand
The other change is the introduction of a new home flipping tax for sellers who have owned for less than two years. If a home is sold less than two years after purchase, the seller will be subject to tax on income from the sale of 20% within 365 days, and on a sliding scale between 366 and 730 days. There are some exemptions for things like death, divorce, illness, and relocation of work but otherwise applies to everyone including principal residence owners. This policy is unlikely to reduce demand from so-called “flippers” and unlikely to have a measurable impact on values.
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