Buyers Don’t Pay Property Purchase Tax on New Homes at Woodland Creek
On February 16th, the BC Government gave buyers of new homes in British Columbia an advantage by exempting them from the Property Purchase Tax on new home purchases. This regulatory change eliminates the provincial tax payable on real estate transactions in the amount of 1% on the first $200,000 and 2% on the balance, a savings of $13,000 on a new home purchase of $750,000.
All new homes at Woodland Creek in Sooke qualify for the new tax exemption. With new home prices starting at $389,900, this saves buyers a minimum of $5,000 when making a ‘new home’ purchase in one of Victoria BC’s favourite seaside communities.
Below are some key points to consider:
1. The exemption applies only to newly built homes – not resale homes.
2. There is a full exemption for qualifying properties with a fair market value of $750,000 or less and a partial exemption for qualifying properties with a fair market value between $750,000 and $800,000.
3. The property must be 0.5 hectares (1.24 acres) or smaller.
4. The party claiming the exemption:
a. must be a Canadian citizen or permanent resident.
b. must use the property as a principal residence.
c. does not have to be a first time home buyer.
Other Changes to the BC Property Transfer Tax Rate
Another change to the Property Transfer Tax Act is a new tax rate of 3% for properties with a fair market value greater than $2,000,000. The Property Transfer Tax (PTT) is now calculated as follows:
1. 1% of the taxable transaction’s fair market value that does not exceed $200,000.
2. 2% of that fair market value that exceeds $200,000 but does not exceed $2,000,000.
3. 3% of that fair market value that exceeds $2,000,000.
First Time Buyers Exemption
The First Time Home Buyers’ Program eliminates the amount of property transfer tax you pay when you purchase your first home (new or resale). The home must be $475,000 or less if registered and be 0.5 hectares (1.24 acres) or smaller
Below are some links with further information regarding the qualifications criteria:
1. Frequently Asked Questions about the changes to the BC Property Transfer Tax Act: http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/exemptions/newly-built-home-exemption#qualify
2. A Guide to the Property Transfer Tax – Newly Built Home Exemption: http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/exemptions/newly-built-home-exemption#qualify
3. A Table of Property Transfer Tax – Newly Built Home Exemption amounts: http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/exemptions/newly-built-home-exemption/exemption-amounts
About Totangi Properties Ltd. and Woodland Creek
Celebrating their 47th year in business, Totangi Properties is a locally-owned and operated award winning property development and land management company established in 1968. In 2014 Totangi was ranked #1 in Canada for Customer Satisfaction by Avid Ratings. Brothers Warren and Blair Robertson and their team work closely with the 2012 Built Green Builder of the Year, SC Smith Building Company, in the creation of Woodland Creek and are committed to creating affordable, high-quality residential properties with lasting homeowner value.
2012 Gold CARE Award winner for Best New Subdivision, Woodland Creek is a residential neighbourhood of new homes in the heart of Sooke, British Columbia – a waterfront community near Victoria BC. A planned residential community, Woodland Creek was designed with the objective of providing a wide range of new housing opportunities for the community; close to schools, parks and the Sooke shopping and service core with the fundamental commitments of quality construction, lasting value and the long-term commitment of an established local developer.
For more information, visit www.totangi.ca .