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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BC announces home-flipping tax, plus aid for first-time buyers, property transfer tax changes and refunds. Market Continues Recovering. New Ferries & More.

Canadian Housing Market Continues to Show Signs of Recovery   As homes selling in expensive markets outpace homes selling in more affordable markets, the national average price will appear to rise, which can skew how the data is interpreted. Watch as Shaun Cathcart, Senior Economist at the Canadian Real Estate Association (CREA), breaks it all down in the video below.     CURRENT INTEREST RATES IN CASE YOU MISSED IT...MORE REAL ESTATE NEWS The latest in mortgage news: BC government unveils details of its proposed home-flipping tax   Property Transfer Tax Exemptions    Strata Tip of the Week - Does the strata have to provide general meeting notice packages?   B.C. offers homeowners up to $40K to build secondary suites. Here's what you need to know   Are you a First Time Home Buyer who Purchased in the Past 18 Months? Property Transfer Tax Refunds May Be Available To You   First-Time Home Buyers’ Tax Credit (HBTC) - FEDERAL INCOME TAXES   CMHC Predicts House Prices to Increase by as Much as 89% by 2030 Across Canada   What is the Secondary Suite Incentive Program? Are You Considering Weather When Buying a Home? What Does a Sellers’ Market Mean for Buyers Canadian Housing Market Continues Recovering; Home Sales on the Rise Most Canadian mortgage owners concerned about payments, survey finds (BNN Bloomberg) High living costs 'jeopardizing' financial security of renters, mortgage owners: survey (BNN Bloomberg) Millions of Canadians fear delayed retirement, Co-operators poll reveals (Wealth Professional) We could reach 2% inflation by this summer: National Bank (Canadian Mortgage Trends) Mortgage rejections in flood zones (CTV News) Real Estate Magazine – Property tax hikes spark outcry across Canada: Are homeowners being bled dry? Real Estate Magazine – GER: Collaborative solutions for Canada’s housing crisis: Why non-profits are essential Bloomberg – Canadians eager for homeownership, but down payments present another hurdle: report Financial Post – What $1 million will buy you in Canada's housing market Financial Post – Canadians jump into variable mortgages, bet on 'short-term pain for long-term gain' Storeys – Will Canada really need 5.8M new homes by 2030? Storeys – Quality of life worse for renters over homeowners, data suggests Bank of Canada to cut interest rates in half by end of next year: Desjardins (Yahoo! Finance) Identity and mortgage fraud on the rise (CTV News) How barriers to homeownership are impacting young Canadians’ future plans (Global news) National Bank sees delinquencies for its insured variable-rate mortgages rise to pre-pandemic levels (Canadian Mortgage Trends) Financial Post - MCLISTER: Are you ready to start climbing the property ladder? This checklist will help you find out If the 2000s have taught us anything, it’s that buying and holding a quality primary residence is a cheat code for tax-free equity gains.  Looking back at every 12-month span since 1980, home prices have risen an average of 5.78 per cent. That means, if you’re adequately qualified and financially fit, getting on the property ladder earlier in life can put you on the fast track to a secure retirement. Real advice with Rita: Chattel, financing alternative homes, and home inspections 5 key differences between building a home in the country and the city Top tile trends of 2024 Real Estate Magazine – Canadian homeowners face declining property values: Point2 study reveals significant losses Reuters – Canada's extension of ban on foreign real estate buyers labelled political, not practical Financial Post – A deeper dive into the CRA's rules around using a tax-free FHSA to buy a home Financial Post – Sidelined homebuyers just waiting for the Bank of Canada to cut rates Canadian Mortgage Professional – Canadian home prices expected to rise until 2025 Canadian Mortgage Professional – BC announces home-flipping tax, plus aid for first-time buyers The latest in mortgage news: BC government unveils details of its proposed home-flipping tax (Canadian Mortgage Trends) Victoria Times Colonist - Plan for six-lot subdivision along Lochside Trail gets green light Victoria Times Colonist - Developer can’t add two storeys to Esquimalt condo already being built Victoria Times Colonist - Saanich revised OCP opens door to 18-storey residential towers on McKenzie Victoria Times Colonist - Tiny Town container-housing village set to reopen at Royal Athletic Park parking lot B.C. homeowners who sell within two years to face flipping tax (Times Colonist) Victoria Times Colonist - New rental highrise on View Street would be higher than View Towers B.C. premier admits home-flipping tax is no silver bullet (CBC News) Real estate association economist doubts B.C.’s flipping tax is worth the trouble (Canadian Mortgage Trends) Victoria Times Colonist - New B.C. Ferries vessels, expected in 2029, to carry 2,100, run on greener tech B.C. home sales rise in January, nearly 30% above last year: BCREA (Real Estate Magazine)   VICTORIA & VANCOUVER ISLAND HOME SEARCH   Diana Winger Personal Real Estate Corporation eXp Realty | CNE, SRS, SRES, ABRMortgage Agent Level 1 Valko Financial LTD #13047Dominion Lending Centres HomeVictoria.com | Housesforsale369.com WingerRealEstate.com | SearchBestMortgages.com(250) 588-8839  (226) 705-3369ON YOUR TEAM!   Share Tweet Forward

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