Hafez Realty News

BUDGET 2016 – MEDIA RELEASE

The British Columbia Real Estate Association (BCREA) welcomes the proposed changes to the Property Transfer Tax (PTT) and other measures in Budget 2016 to improve housing affordability in the province and collect better information about property transactions.


The PTT exemption for new homes up to $750,000 will help stimulate supply of new housing and provide more opportunities for home ownership across the province. This exemption is commendable, however with many new housing projects taking years to complete, it may not have the immediate impact desired by the government.


While the new three percent threshold for properties over $2 million is intended to pay for the new home exemption, the province has missed an opportunity to raise the existing threshold levels to provide broader PTT relief for those who cannot afford a newly constructed home and who are not first time homebuyers.


By not indexing the threshold levels, the province ensures that – in an environment of rising home prices – an increasing number of homes will fall within the new three percent threshold, resulting in a higher tax burden on more home buyers.


Collecting and analyzing information on real estate transactions will help the provincial government make fact-based policy decisions. BCREA welcomes this initiative and looks forward to having the data publicly available.


BCREA continues to call on the provincial government to:


o Increase the 1% PTT threshold from $200,000 to $525,000;
o Index the 1% PTT threshold using the MLS® Home Price Index, and make adjustments annually;
o Index the exemption threshold for the First-Time Home Buyers’ Program using the MLS® Home Price Index, and make adjustments annually.

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Hafez Panju
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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.