Savings Up to $13,000 for New Home Builds


“According to the recent budget announcement, new homes priced up to $750,000 will be fully exempt from the property transfer tax when bought by Canadian citizens or permanent residents as a principal residence and lived-in for one year. This is a great tax break for citizens to take advantage of, and may inspire the purchases of more moderately priced homes. This exemption can save purchasers up to $13,000! For new housing valued up to $800,000, there are partial exemptions available including the first purchase of a new housing unit or newly subdivided unit.” Anne McMullin, President and CEO of the Urban Development Institute, for VanCity Buzz.

This is fantastic news for those considering a new home build at Tobiano. With lot prices starting and $130,000 and building costs hovering around $200 a square foot of finished area, it is not unreasonable to expect to build a home for well under $750,000.

More in this excerpt from Kamloops This Week.

B.C. Budget 2016 includes trimming of property transfer tax

By: Tom Fletcher, February 16, 2016/Black Press

New homes worth up to $750,000 are exempt from B.C.’s property transfer tax under changes in the budget that take effect April 1.

Finance Minister Mike de Jong is raising the exemption level from $475,000 on new homes and expects to make up most of the revenue by increasing the tax rate from two to three per cent on the value of homes in excess of $2 million.

For resold homes, property purchase tax continues to apply at one per cent on the first $200,000 of value and two per cent on value between $200,000 and $2 million.

The tax has produced a windfall for the province and pushed home purchase costs even higher in the hot market for homes in some urban areas. The government expects to collect about $200 million more than it budgeted for the current year.

De Jong said the break is aimed at new construction to stimulate new housing construction, adding to supply in response to demand that is driving prices up.

The exemption is only available to Canadian citizens and permanent residents, and the government is resuming tracking nationality of buyers, a practise stopped in 1998.

The upper limit to qualify for the homeowner grant is also increased from $1.1 million to $1.2 million for the 2016 property tax year.

Read the full story here.