On February 19th, Carole Taylor announced the 2008 Provincial budget. Much has been made of the “green” budget. Somewhat lost in the green glare has been the fact that the Provincial government increased the threshold for First-Time Buyer’s to qualify for exemption from the Property Transfer Tax.
If you qualify under the program, you can now purchase a property valued at up to $425,000 rather than $375,000. This is very welcome news for us in Vancouver. However, I…along with many others…wonder if that is enough. $425,000 will hardly get you a one bedroom apartment in downtown Vancouver, let alone two bedrooms, or a detached house.
Personally (along with the Real Estate Board), I would like to see the Property Transfer Tax cut completely. Realistically, this will never happen. Carole Taylor was quoted recently as saying that the tax brought in more than $1 Billion annually.
Of course, I’m willing to compromise. I’m a reasonable guy. One possible solution might be for the exemption level to vary from one area to another. It makes no sense that we have the same exemption in Vancouver as in Trail or Prince George…or Skookum for that matter. Why not increase the exemption in Vancouver to something reasonable (like $600,000), and have it somewhat lower in somewhere like Skookum (say, $350,000).
One other positive regarding the PTT exemption. The government abolished the rule that you were disqualified for the exemption if you put down more than a 30% downpayment. They are no longer punishing you for saving your money.
More Info for Vancouver First Time Home Buyers
Are you a first time home buyer? Finding it hard to get the information that you need to make an informed decision in today’s real estate market? You’ll find the resources that you need tailored for you, the Vancouver First Time Home Buyer here.
Sebastian Albrecht, Vancouver Realtor with Royal LePage Westside
|
|
|
|
|
|
No related posts.
{ 1 trackback }
{ 0 comments… add one now }