KELOWNA – The BC government’s announcement this week that it would increase the Property Transfer Tax exemption threshold for first-time buyers was welcomed by the Okanagan Mainline Real Estate Board (OMREB).
“We are encouraged that this government is paying attention to the needs of first-time homebuyers,” comments Anthony Bastiaanssen, OMREB President. He notes that the increase, announced as part of the government’s 2017 budget, ups the threshold from $475,000 to $500,000 and takes effect today.
“We welcome this increase, although it would make sense to index this threshold and all others related to the Property Transfer Tax, so that homebuyers aren’t left behind when the market moves as it did this past year,” says Bastiaanssen, adding that thresholds could be adjusted annually to reflect current market conditions.
Advocating on behalf of BC realtors and the consumers they serve, the British Columbia Real Estate Association (BCREA) recommended in January that the first-time buyer exemption be increased to $750,000, a number that would align with the exemption for newly-built homes and the BC HOME Partnership program.
This would have offered more choice for home buyers, because the First Time Home Buyers’ Program exemption applies to all homes, rather than just newly-built homes, which can be out-of-reach for first-time buyers.
“Low housing supply impacts affordability, so it’s also encouraging that the government is planning to partner with local governments to increase housing supply,” Bastiaanssen adds, pointing to the 30% drop in the number of Okanagan properties available for sale this year as compared to last year in the region served by OMREB.
For more on BCREA’s recommendations on housing affordability please visit the following link.