The new housing affordability measures were announced recently in Burnaby, creating big changes. Effective February 17th 2016, the purchase of a qualifying new housing unit valued up to $750,000 will be exempt from the Property Transfer Tax (PTT).
This is a significant savings when buying a new home. For example, if you purchase a new home at a price of $400,000, you will be exempt from paying the $6,000 in property transfer tax.
The tax structure change has being long overdue, with many BC residents voicing that homebuyers deserve a reduction in housing taxes. The cost of this measure adds an additional tier to the property transfer tax at 3% on a fair market value over $2 million.
Previously, the PTT was 1% on the first $200,000, and 2% on the remainder. Now, “residents who purchase their principal residence and live in the unit for a full year will be exempt from the PTT on newly built homes up to $750,000.” – CHBA, BC.
This new exemption rule is predicted to provide $75 million in property transfer relief for new construction in 2016/2017. These changes signify housing affordability and address an important sector within the province.
The new measures create positive steps for home buyers in British Columbia. At Aldebaran Homes, we care about supporting healthy homes and healthy living.
Current Developments in British Columbia: