7 replies to this topic

[MarkoJ]

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

 

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

[nagel]

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.

[JanionGuy]

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.

[lanforod]

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.

[nagel]

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.

[JanionGuy]

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. 

[MarkoJ]

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.

[nagel]

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.