Real Estate News February 2024

                  New purchase price limit announced for First Time Buyers Tax exemptions. 

It looks like there is finally some movement on the exemption from the transfer tax for first-time buyers. Although not quite what everyone was looking for, it is a step in the right direction. 

The new purchase price limit is $ 835,000.00 with the first $ 500,000.00 exempt from the tax. This means that where a first-time buyer would have had to pay $ 14,700.00 in transfer tax, they now will have to pay $ 6,700.00. This change comes into effect April 1, 2024.
The limit for the exemption on newly constructed homes is also rising, from $ 750,000.00 to 

$ 1,100,000.00 and also comes into effect April 1, 2024.

BC Government Announces New Housing Measures in 2024 Budget 

February 22, 2024

This afternoon, Finance Minister Katrine Conroy introduced the provincial government’s Budget 2024. The budget unveiled several new housing related measures, including the BC Home Flipping Tax and various property transfer tax exemptions.


While BCREA commends the provincial government’s renewed commitment and efforts to improve housing attainability for British Columbians, the budget’s introduction of a “flipping tax” is unlikely to have a meaningful impact on housing attainability.  

Flipping Tax 

The BC Home Flipping Tax is a 20 per cent tax on the gain from sale of a home within a one-year time horizon and a pro-rated tax on sales up to within a two-year period. The tax will apply to both properties and assignments of contracts and is in addition to any existing federal or provincial income taxes incurred from the sale of the property, including the federal anti-flipping tax. Exemptions will be available for certain life circumstances that might motivate the sale of a property within two years, including for added supply through the creation of rental accessory dwelling units. 

The BCREA Economics Department’s preliminary analysis estimates the flipping tax will decrease home sales by between 1-2 per cent over a three-year period. Given the relatively small impact, prices and housing attainability are essentially unchanged by the tax. This is unsurprising, given that short-term flipping represents a low share of sales activity (less than 2 per cent in both Vancouver and Victoria). 

However, because the government has now implemented a disincentive to sell within a two-year period after purchasing, there will be some potential sellers that are prompted to delay listing, resulting in a lower level of listings inventory than without the tax. As a result, home prices may increase with the flipping tax compared to a no-tax baseline. Ultimately, the only way to prevent harmful short-term speculation in the housing market is to ensure housing is abundant. Our team plans to continue to analyze the flipping tax and provide updates when available. 

Property Transfer Tax Exemptions 

In principle, BCREA supports reduced property transfer taxes for first-time home buyers and people purchasing newly constructed homes. However, while we're in favour of measures that increase first-time home buyers’ abilities to purchase properties, it's critically important that housing supply is increased so they aren’t caught in bidding wars to acquire those homes. More detail is needed on property transfer tax exemption for purpose-built rentals to understand its impact on housing attainability for British Columbians. 

BCREA will continue to advocate for more thoughtful and evidence-based policies that can genuinely move the needle on housing attainability and alleviate the housing crisis facing British Columbians. 

In early March, BCREA and delegates from real estate boards across the province will be taking part in our annual Government Liaison (GL) Days in Victoria. During this time, we will be meeting with MLA’s representing all parties and advocating for the establishment of a permanent housing roundtable where stakeholders such as BCREA can advise on housing policy prior to its introduction and implementation. Stay tuned to BCREA channels for more details about GL Days. 

                            Real Estate News January 2023 

 If you are in the market for a new home in 2023, we would suggest that you familiarize yourself with the following new regulations. 

1. Home Buyer Rescission Period 

As of January 3, 2023 the new Home Buyer Rescission Period (otherwise referred to as the ‘Cooling Off Period’), become a mandatory step in most residential real estate transactions across B.C.

Prospective purchasers of most property types now have a three-day window after their offer is accepted to withdraw from a purchase agreement no questions asked. This rescission period is separate from any condition precedents contained in the offer, such as inspection, approval for financing or other conditions.

This period will include a rescission fee of 0.25% of the purchase price, or $250 for every $100,000, for those who choose to back out of a deal within those first 3 days after acceptance. For example, if the purchaser exercises the right of rescission on a $1-million home, they would be required to pay $2,500 to the seller within 14 days. 


2. Prohibition on the Purchase of Residential Property by Non-Canadians Act  (Foreign Buyer Ban) 

As of January 1, 2023, the Federal Government of Canada has implemented a two-year ban on foreign ownership of residential property across Canada. Properties that fall under this category include:

  • A detached house or similar building
  • Semi-detached house, row house unit, residential condominium unit or similar premises 
  • Immovable property

This new regulation prohibits property sales to those not classed as a Canadian citizen or permanent resident as well as any commercial enterprises that are not incorporated under Canadian Law.

The Government has however announced certain exemptions to this new ruling. Some of these include:

  • A temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies prescribed conditions
  • A non-Canadian who buys residential property with a Canadian spouse or common-law partner if the spouse or common-law partner is a Canadian citizen or permanent resident
  • A person registered as an Indian under the Indian Act 
  • Selected rural geographical locations. Here in the Kootenays we do have area that are part of the ban such as Nelson, Trail and Rossland and we have many areas that are exempt. Contact us for more info on specific locations.  

3. Anti-Flipping Tax  

As of January 1, 2023, the Federal Government has imposed a new tax regulation on any profits generated from a sale of property that has been owned for less than 12 months. House flippers, beware!

This new tax law will disallow the use of the Principal Residence Exemption (PRE), and any gain realized from the sale will be taxed as business income, not as a capital gain. Homeowners will need to prove to the Canada Revenue Agency (CRA) of any exception.

This new measure comes into effect to help cool off demand throughout the market, but also comes with potential exceptions such as death, breakdown of a relationship, serious illness or disability, relocation for work, or insolvency/bankruptcy.

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Kevin Arcuri & Layla Precious

Mobile: Kevin 250.354.2958

Phone: Layla 250.354.3369

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Coldwell Banker

593 Baker St   Nelson,  BC  V1L 4J1 

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