HELP COMES TO NEW HOME BUYERS
As a Fifth Avenue Insider we wanted to give you the news first. On February 17th, British Columbia’s Minster of Finance announced important changes to the provincial budget that could potentially affect you or your clients.
If you are purchasing a newly constructed home priced up to $750,000, you will now be exempt from the Property Transfer Tax, as long as this home is your principal residence.
Let’s say you purchase a home at Notting Hill with a purchase price of $450,000 typically you would have to pay a property transfer tax of one percent on the first $200,000 and two percent on the remainder of the purchase price. This means you would have to pay $7,000 in property transfer tax upon completion. This new exemption means you will pay $0 in property transfer tax. That is a total savings of $7,000.
Facts to keep in mind:
These changes only apply to owners and occupiers, not investors
This exemptions applies to purchases that complete after February 17th.
It is important to note, there are no changes to the first time home buyer exemption limits. Please click here for more information.