Property Transfer Tax exemptions - April 1, 2024

New 2024 budget measures from the government of BC:  For many, buying a home is the largest purchase they will ever make, and property prices are making it harder. Every little bit helps, and Budget 2024 aims to give people the financial boost they need to bring buying a home within reach, including: Increases to the threshold for the First Time Homebuyers’ Program so it reflects today’s market: Qualifying first-time buyers can benefit when they purchase a home worth up to $835,000, with the first $500,000 completely exempt from the property transfer tax. That could mean as much as $8,000 in savings. An estimated 14,500 people – twice as many as before – will now be eligible for support to buy their first home, helping them move out of the rental market and freeing up rentals for others. People buying newly built homes worth up to $1.1 million will also see lower costs through the newly-built-home exemption. To help lower the cost and encourage the construction of more rental units, eligible purpose-built rental buildings of four or more units will also receive a property transfer tax exemption until 2030. Raising these property transfer tax exemption thresholds and incentivizing building of new rentals and homes will save more people more money, an estimated $100 million per year. For information on PTT including a calculator, click here. Property Transfer Tax Exemptions  In principle, BCREA supports reduced property transfer taxes for first-time home buyers and people purchasing newly constructed homes. However, while we're in favour of measures that increase first-time home buyers’ abilities to purchase properties, it's critically important that housing supply is increased so they aren’t caught in bidding wars to acquire those homes. More detail is needed on property transfer tax exemption for purpose-built rentals to understand its impact on housing attainability for British Columbians READ MORE on BC REAL ESTATE ASSOCIATION bulletin Real Estate Lawyer Dylan Taylor explains in these videos how this will work: https://www.instagram.com/reel/C5gOHo4LRNd/?igsh=MWs2eXlwcDR4cWMwOA== https://www.instagram.com/p/C5la6XZLoyZ/

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BC Home Flipping Tax - Jan 1, 2025

As part of the Homes for People plan, and to discourage speculators from driving up prices, Budget 2024 introduces the new BC Home Flipping Tax, effective Jan. 1, 2025. This will be a tax on the profit made from selling a residential property within two years of buying it, with specific exemptions for life circumstances, such as divorce, death, illness and relocation for work, among others. Revenue from the tax will go directly to building affordable housing throughout B.C. For full detail on the budget, click here.   The latest in mortgage news: BC government unveils details of its proposed home-flipping tax   The British Columbia government today unveiled additional details of its proposed house flipping tax that was first introduced in last week’s budget. The government said it plans to introduce the legislation in the spring. If passed, the new tax will take effect starting January 1, 2025. The legislation would impose a tax on any home sold within two years from its purchase date, but includes exemptions for people facing “unavoidable life changes,” including death, divorce and job relocation or loss. According to government figures, 7% of homes bought between 2020 and 2022 were resold within two years. Homes sold within the first year that don’t fall under any of the exemptions would face a tax of 20% on the profits, with that rate falling progressively to zero over the second year. “We know that people are struggling to find homes to rent or buy in areas that are close to work and their families,” Minister of Finance Katrine Conroy said in a statement. “That’s why Budget 2024 takes further steps to deliver more housing for people faster and make sure homes are lived in.” The proposed new tax accompanies other measures introduced in last week’s budget, including: Expansion of the First Time Homebuyers’ Program: First-time buyers of homes valued up to $835,000 will benefit from a property transfer tax exemption on the first $500,000 of their purchase price, with potential savings reaching $8,000. The government said this new exemption will benefit approximately 14,500 people, or about twice as many under previous exemptions. Newly built home exemption: To encourage the purchase of new constructions, buyers of homes valued up to $1.1 million will benefit from the newly-built home exemption. This is an increase from the current $750,000 limit. Rental home construction exemption: To lower the cost and encourage the construction of more rental units, eligible purpose-built rental buildings of four or more units will also receive a property transfer tax exemption that will run from January 1, 2025, until 2030.   Flipping Tax  The BC Home Flipping Tax is a 20 per cent tax on the gain from sale of a home within a one-year time horizon and a pro-rated tax on sales up to within a two-year period. The tax will apply to both properties and assignments of contracts and is in addition to any existing federal or provincial income taxes incurred from the sale of the property, including the federal anti-flipping tax. Exemptions will be available for certain life circumstances that might motivate the sale of a property within two years, including for added supply through the creation of rental accessory dwelling units.  READ MORE on BC REAL ESTATE ASSOCIATION bulletin     Source: https://www.canadianmortgagetrends.com/2024/02/the-latest-in-mortgage-news-bc-government-unveils-details-of-its-proposed-home-flipping-tax/?utm_campaign=Daily%20News&utm_medium=email&_hsmi=295853446&_hsenc=p2ANqtz-9XsAevQrUqS1QZOnwtGHvZb9Ielf_xqt6_IV9rfH9qmllp3fth_RguqnydZNK2qJbJwPuRQ4WftwygYeBNNi64KmcbVaT0t9c6GAhbI2uZE7yKE4U&utm_content=295853446&utm_source=hs_email   https://www.bcrea.bc.ca/advocacy/flipping-tax-announced-by-bc-government/

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Supply Still Key to Victoria's Housing Market | Transfer Tax Changes | 30 year Amortizations | Whistler Lift Pass Sale Only Until April 14

View this in your browser A total of 588 properties sold in the Victoria Real Estate Board region this March, 0.3 per cent fewer than the 590 properties sold in March 2023 but a 25.1 per cent increase from February 2024. Sales of condominiums were down 10.2 per cent from March 2023 with 177 units sold. Sales of single family homes increased 1.8 per cent from March 2023 with 286 sold. “We’ve concluded a rather quiet first quarter and are transitioning into the spring market,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “Many of our local REALTOR® members are noting that more shoppers are coming into the market – but this has not necessarily translated into sales numbers. This may change as we move into what is historically the busiest market of the year.” There were 2,647 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of March 2024, an increase of 12 per cent compared to the previous month of February and a 34.4 per cent increase from the 1,970 active listings for sale at the end of March 2023. “The increases in inventory we’ve seen in recent months really help to improve the health of our market,” adds Chair Lidstone. “We have more inventory for consumers to consider when compared with recent years. This additional inventory improves both buyer and seller confidence as it means people have more options and more reassurance that they are going to be able to find their new home. As people buy and move, more properties are added to the available inventory, which supports a much healthier market. Supply really is key, and looking to the future we need to ensure that focus continues on the creation of new homes of all types and price points. If you’re considering a move over the course of the spring market, connect with your favourite local Realtor for to-the-minute insight into our market to create your strategy.” The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2023 was $1,258,300. The benchmark value for the same home in March 2024 increased by 1.7 per cent to $1,279,300, up from February’s value of $1,247,400. The MLS® HPI benchmark value for a condominium in the Victoria Core area in March 2023 was $549,000 while the benchmark value for the same condominium in March 2024 increased by 3.3 per cent to $567,300, up from the February value of $557,000. Review the March 2023 statistics package here BREAKING NEWS - The Bank of Canada has left its benchmark rate unchanged at 5.00%  As expected, the Bank of Canada has left its overnight target rate unchanged at 5.00% today. In its statement, the Bank said, “While inflation is still too high and risks remain, CPI and core inflation have eased further in recent months. The Council will be looking for evidence that this downward momentum is sustained.” In its latest forecast, the Bank said it expects headline inflation to remain near 3% for the first half of this year before moving below 2.50% in the second half and reaching the 2% inflation target in 2025. This is the Bank’s sixth consecutive rate hold, though expectations are that rate cuts will be forthcoming by the middle or second half of the year. The next rate announcement is scheduled for June 5th, 2024.    Read Bank's Full Statement Here READ THE MONETARY POLICY REPORT The federal government announced it will allow 30-year amortization periods on insured mortgages for first-time homebuyers purchasing newly built homes! Tracy Valko Starting August 1st, first-time homebuyers purchasing newly built homes will be eligible for 30-year amortization periods on insured mortgages. This extended period provides greater flexibility in managing mortgage payments, easing the financial burden for those embarking on their homeownership journey. This rule change will also provide eligible homebuyers with an additional 5% in purchasing power. For instance, on a $750,000 home purchase, the minimum household income requirement decreases from $179,062 to $169,689. Beyond the updates on purchasing new builds, the federal government has also addressed various aspects of housing affordability. 📈 Increase in RRSP withdrawal limit for first-time homebuyers from $35,000 to $60,000, starting April 16. 💼 Budget focusing on housing measures to be unveiled on April 16. ⏰ Repayment period for RRSP withdrawals extended to five years from two, for withdrawals between January 1, 2022, and December 31, 2025. 💰 Over 750,000 First Home Savings Accounts opened since last year, offering a tax-free savings option for home down payments up to $40,000.  Watch video here: https://www.instagram.com/p/C5ovmnZg1PM/CBC News - Freeland announces housing affordability measures for first-time buyers, current owners Strong U.S. inflation could delay rate cuts on both sides of the border (Canadian Mortgage Trends) What's the most expensive home you could afford? (CBC News) Overbidding wave sweeps the GTA’s housing market in March (Real Estate Magazine) Mortgage Minute: Your questions answered (CTV News) Canadian Mortgages Just Had One of The Slowest Quarters Ever (Better Dwelling) A ‘weird’ March shows real estate market still off balance (The Globe and Mail) What to expect from the spring housing market (CTV News) Spring housing market surge unlikely as affordability, cost of living weigh on buyers (Canadian Mortgage Trends) Canada’s unemployment rate surges in wake of strong population growth (Canadian Mortgage Trends) 'Extremely stressful for Canadians’: Housing affordability unlikely to improve anytime soon, RBC says (Toronto Star) Financial Post – Home prices set to hit record in 2026 amid unrelenting demand: CMHC Financial Post – Surge in luxury home sales signals stronger spring market, Re/Max says Globe and Mail – Home prices could reach peak levels by next year, set new highs in 2026, CMHC report shows Canadian Mortgage Professional – Homebuyers ready to return – report Population surge and the impact on housing (Global News) Bloomberg - Canada to Cut Temporary Residents by 20% Over Three Years Canada likely to avoid recession, begin recovering in second half of 2024 (City News) Canada’s luxury property market going strong as buyers benefit from lower prices (Real Estate Magazine) Near-term inflation expectations remain high, BoC surveys show (Canadian Mortgage Trends) B.C. government targets ‘profiteers’ with legislation to bring in 20% flipping tax (Canadian Mortgage Trends) Times Colonist - Vic High's reopening welcomed by students, neighbouring businesses Times Colonist - Esquimalt agrees to 26-storey tower, tallest building in municipality Times Colonist - Transit-oriented development with 'hundreds' of new homes planned for Uptown area Times Colonist -Two-block development on Victoria waterfront could be new home for Art Gallery Times Colonist - More options for home buyers, but real estate sales have yet to pick up Times Colonist - Two Victoria firms nail down construction awardsFinancial Post – Canada to allow 30-year mortgages for first-time homebuyersFinancial Post – RBC urges Canada to prioritize construction skills in immigrants to tackle housing crisisGlobe and Mail – Canada’s housing crisis poised to worsen without major reforms, RBC report saysGlobe and Mail – First-time homebuyers can get 30-year mortgages to buy newly built houses under rule changeToronto Star – Entry to housing market feels out of reach for 76% of non-owners: CIBC pollWhy Multiple Listing Service Canada is a game-changer for agents and brokersStoreys – No regrets: Vast majority of Canadian homeowners don’t have buyers’ remorseVancouver Island Building Permit Trends   Check out this video I took last week from 7th heaven on Blackhomb NOW SELLING! From $899K + GST  Fitness Progress Video 2024   Diana Winger Personal Real Estate Corporation eXp Realty | CNE, SRS, SRES, ABRMortgage Agent Level 1 Valko Financial LTD #13047Dominion Lending Centres WingerRealEstate.com | SearchBestMortgages.com(250) 588-8839  (226) 705-3369ON YOUR TEAM!   Share Tweet Forward

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