8 replies to this topic

[MarkoJ]

By: Darcy Wintonyk and Lynda Steele, ctvbc.ca

Date: Tuesday Feb. 21, 2012 5:30 PM PT


First-time homeowners will now be eligible for a tax credit of up to $10,000, Finance Minister Kevin Falcon announced Tuesday as he rolled out a provincial budget that offered up goodies for home buyers, seniors and parents.

People buying a brand new or substantially renovated home will be allowed to claim a one-time refundable personal income tax credit worth up to $10,000.

Falcon said the measure should open up opportunities for new buyers to get into B.C.'s red-hot real estate market.

"We all recognize our children and grandchildren have a challenge trying to get into their first home," he told reporters in Victoria.

The credit is eligible to families that earn less than $250,000 a year and plan to live in the home. The amount of credit decreases based on net income. The bonus is equal to five per cent of the purchase price, to a maximum of $10,000. It only applies to newly built homes subject to the HST, and homes that have been more than 90 per cent renovated.

The home buyer bonus is effective from now until March 31, 2013.

[sebberry]

Too bad they won't get rid of Vander Zalm's property transfer tax too..

[VictoriaExplorer]

Too bad they won't get rid of Vander Zalm's property transfer tax too..

Exactly what I said when someone told me today about this new rebate.

[skeptic]

To put this in perspective, the PTT on a $600K house is $10K, normally paid by the buyer. The government isn't giving up much in view of the restrictions (new homes or 90% renovated, and first time buyers only need apply). The amount this will cost the government in refunds is round-off error in the budget.

[Nparker]

The amount this will cost the government in refunds is round-off error in the budget.

Exactly. This is one of those announcements that sounds like it is a lot more than it actually is. Pretty typical government spin.

[Bernard]

It makes no sense doing this as a one year program. Either you create some long term plan to make it more affordable for first time house buyers to buy or do not bother.

Also, by limiting it to a small part of the units on the market, it may cancel itself out by boosting the value marginally of new built places.

[Nparker]

It makes no sense doing this as a one year program...

It makes sense if you're simply trying to buy some votes in time for the next provincial election.

[Hikermatt]

I agree, although personally in my case it would benefit me greatly if they extended the program. Kinda makes me wish I was buying sooner rather than later.

[Bernard]

Will it really get that many more votes from anyone?