BC Government Announces Real Estate Changes in 2024 Budget
The BC NDP Government has hit the ground running in 2024. Just last week, they unveiled the provincial budget, introducing several notable Real Estate Changes in 2024 housing market.
The BC NDP Government has hit the ground running in 2024. Just last week, they unveiled the provincial budget, introducing several notable Real Estate Changes in 2024 housing market.
In the 2024 provincial budget, the BC Government is implementing three significant changes to the PTT Framework.
Increase the Fair Market Value Threshold for the First Time Home Buyer (FTHB) Exemption
Starting April 1st, 2024, significant changes are coming to the First Time Home Buyer (FTHB) exemption in British Columbia. Currently, the exemption applies to properties with a fair market value (FMV) of less than $500,000, with a partial exemption for properties valued between $500,000 and $525,000.
Under the new regulations, the First Time Home Buyer exemption will be structured differently. For properties with an Fair Market Value of less than $835,000, the exemption will cover the first $500,000, with Property Transfer Tax (PTT) payable only on the difference between the Fair Market Value and $500,000. For instance, if a property is valued at $700,000, the PTT paid would be 2% of $200,000 ($700,000 minus $500,000). This change saves the purchaser a total of $8,000 in PTT.
However, if the Fair Market Value of the property exceeds $835,000, there will be no PTT exemption available. These adjustments aim to better align the First Time Home Buyer exemption with current market conditions and provide relief for first-time home buyers while ensuring fairness in the taxation system.