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New BC Budget highlights and how it affects you and real estate
Here is what you need to know about the new BC budget. Some pretty amazing statistics.
BC Budget Highlights
The BC Government has a surplus budget of $264 million and a forecast allowance of $350 million, spending of $47.5 billion and revenues at $48 billion - the province showcases a balanced budget for the fourth year in a row.
In the real estate perspective, foreign ownership and housing affordability were major considerations in the budget released February 16th. Both of these topics were discussed by VERICO's economic consultant Michael Campbell back in January of 2016.
Here's what really matters for you and how it affects real estate
Property Transfer Tax for Home Values Over $2Million
There is now an increase in the property transfer tax for luxury homes, with a new tier of 3% on the portion of a purchase above $2 million.
That is on top of the current rates, which impose 1% tax on the first $200,000 and 2% for the portion between $200,000 and $2-million.
Sales to New Listings Ratio Vancouver’s housing market has an almost unheardof 91% sales-to-new listings ratio. Almost every new listing is getting absorbed within a month. Canada as a whole has seen a 17% increase in housing costs.
is the number for First Time Home Buyers Tax exemptions will continue for First Time Home Buyers purchasing a home valued at $475K or less.
For the first time since 1998
Property buyers will be required to provide their citizenship information. Bare trusts purchasing property will need to disclose their beneficiaries.
Provincial government will be monitoring these numbers.
Property Transfer Tax Exemption for newly built homes valued up to
Exemption valid for Canadian citizens or Permanent Residents only. Homes must be owner-occupied for at least a year after purchase date. Relatives do not qualify.
People in the Province
1/3 of the new population to the province came from Alberta.