As of February 22nd, 2017 the land transfers tax exception increased its limit from $475,000 to $500,000 for First Time Home Buyers. I’m going to be honest, as much as this makes a great head headline on the front page of The Province, I question it’s effectiveness. I appreciated what the BCREA said about the increase though when recommending the BC Government increase the price to $750,000. “That number would align with the exemption for newly-built homes and with the BC HOME Partnership program,” This change would have given FTHB’s a larger range of choices, and not forced FTHB’s to look for new builds if wanting to purchase something greater than $500,000, but less than $750,000. The average home price in BC is roughly $621,000, which is right between the two numbers.
In conclusion, although our BC Government increased the land transfer tax exemption for FTHB’s from $475,000 to $500,000, they could have made it more effective. For First Time Home Buyers, the struggle to find a property in their price range is extremely difficult as the demand for townhouses and apartments in BC is high, and the supply of affordable townhouses and apartments in low. Basic economics – this drives prices up. As a Broker that specializes in FTHB’s, I feel your pain!!!
Please do not hesitate to call, or email me if you have any questions.