The BC government’s 2007 budget lends significant focus to the housing economy, benefiting homeowners and homeless people alike.
Last September, BCREA recommended the government develop a phased three-year plan leading to elimination of the Property Transfer Tax (PTT) by 2009, beginning with an update of the tax exemption thresholds for first-time buyers to $375,000, province wide. This new threshold came into effect on February 21, 2007. The amount applies to all areas of the province, replacing the former threshold, which included $365,000 (for the Lower Mainland, Fraser Valley and Capital Region District) and $265,000 for the rest of the province.
That exact recommendation was included in this year’s budget. Other measures related to market housing include:
- Update to the Home Owner Grant so that 95 per cent of all owners qualify
- Expanded thresholds, to $28,000 from $20,000, for families and individuals via the Rental Assistance Program
- Allowance for people aged 55 to start deferring property taxes (lowered from age 60)
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