Government reduces tax burden on first-time buyers!
We received great news for first time buyers of real estate from the Real Estate Board of Greater Vancouver today!
Here is an excerpt of the News Flash that was sent out to Real Estate Agents:
“The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.
The partial exemption continues and will apply to homes valued between $475,000 and $500,000.
With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.
The government estimates this measure will cost $8 million in lost tax revenue each year.
The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years.
In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000.
In 2005, the government increased the threshold to $325,000 from $275,000.
The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.”
Here is a preview Finance Minister Michael De Jong speaking about the Liberal's Balanced Budget to be released on February 18th, 2014:
Are you a First Time Buyer thinking of purchasing real estate? Have questions about GST or Property Transfer Taxes? Call me today for professional real estate help/advice with no obligation or cost to you!
Cortney Lessard - 604-616-2678 - Century 21 In Town Realty - www.Cortney.ca