Last week we talked about the Property Transfer Tax exemption for 1^st time home buyers. To qualify, you must be a Canadian citizen or a permanent resident and have lived in BC for 12 consecutive months immediately before the purchase, or filed 2 BC tax returns during the previous 6 years. You must not have owned an interest in a principal residence anywhere in the world at anytime, or ever received a first time home buyers’ exemption or refund. This saving is crucial for many 1^st time home buyers.  

One of the most well known programs designed to help first time buyers is the Property Transfer Tax (PTT) exemption. PTT is a tax payable by buyers on most real estate transactions. It is calculated at 1% of the 1^st $200K, 2% of the balance  – a substantial sum of money. First time buyers may be exempted from paying this tax as long as the purchase price does not exceed $425,000. From $425,000 upwards the amount of exemption decreases; the exemption is not available for homes priced at over $450,000. For many first time buyers, this saving is crucial to their ability to purchase their first home.

And remember, we build our real estate business with your referrals, one client at a time.

There is encouraging news out of the U.S. Real estate sales are up across the country and are at their highest levels since 2007. Analysts attribute this to a strengthening economy, historically low interest rates and attractive prices. There are also fewer foreclosures, which lessens the supply and reduces the number of pressure sales. Many areas have actually seen price increases. Canadians familiar with the ups and downs of real estate markets may recall that, historically, Canada often follows trends set in the US. There is no doubt that a rebounding real estate market in the US will help us.

Selling a home just got more affordable in BC. Prior to the HST, there was a 5% tax on the fee realtors charged to sell a home. No PST applied. However, when the 2 taxes were harmonized, PST was added and the tax on real estate fees suddenly jumped to 12%. Obviously, anytime a tax more than doubles it's harmful. On April 1 the GST replaced the HST and the tax on real estate fees dropped  back to 5% for all home sales that close on or after April 1. We welcome this saving.