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Newly Built Home Exemption - Property Transfer Tax


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#1 MarkoJ

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Posted 17 February 2016 - 01:49 PM

This should help boost brand new condo, townhome, and single family home sales (mostly in the Westshore).

 

http://www2.gov.bc.c...-home-exemption


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#2 nagel

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Posted 17 February 2016 - 01:51 PM

This should help boost brand new condo, townhome, and single family home sales (mostly in the Westshore).

 

http://www2.gov.bc.c...-home-exemption

And sprawl.  It definitely provides an incentive to buy a new home, which are generally found out of the core (yes, there are exceptions).

 

It's a bone for the construction industry, really.



#3 JanionGuy

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Posted 17 February 2016 - 02:22 PM

Note that the exemption only applies if the property is your principal residence. So the exemption will not apply to folks that purchase new condos etc. and intend to use a rental property.



#4 lanforod

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Posted 17 February 2016 - 03:35 PM

I don't see it making a big difference. A little, yes, but not a lot. If they had made it all homes, and not just new ones... that would have been a much bigger impact.



#5 nagel

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Posted 17 February 2016 - 03:51 PM

Who is actually going to get the benefit though? Now they can price a new home slightly higher than otherwise because the non new alternative has the tax. So the developer gets at least part of the benefit.

#6 JanionGuy

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Posted 17 February 2016 - 04:13 PM

Am i being naive here, but I think the exemption is a way to politically legitimize the increased tax for higher priced homes, mostly the Vancouver market. 



#7 MarkoJ

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Posted 17 February 2016 - 06:10 PM

Am i being naive here, but I think the exemption is a way to politically legitimize the increased tax for higher priced homes, mostly the Vancouver market. 

 

Not sure why one would need to legitimise the 1% increase on only the portion over $2,000,000.  How many people are buying $3 million homes and how much do they care about the extra 10k, for example?

 

I think this is more a way to politically say that the government is trying to help in terms of affordable housing.... they already collect a lot of taxes through the economy on new builds so this probably doesn't even cost much if it increase construction activity a bit.


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#8 nagel

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Posted 17 February 2016 - 06:15 PM

The exemption and the 3% make a wash revenue wise. At least that's from the sound bites.

If it's affordability it would make more sense for all housing not just new build. It's a handout to construction.

 



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