In British Columbia's 2024 budget, significant housing initiatives have been introduced to support first-time homebuyers and crack down on speculators.
House-Flipping Tax
Starting in 2025, BC will implement a "home-flipping tax" to deter quick property sales. Sellers face a 20% tax on profits if they sell within the first year, gradually reducing to zero by the second year. This tax will also apply to assignment contracts. Exemptions will be considered for life circumstances like separation, death, and disability, as well as for those contributing to housing supply or development.
Property Transfer Tax Exemptions
On April 1, 2024, significant changes are coming to property transfer tax exemptions:
- First-time homebuyers' exemption threshold rises from $500,000 to $835,000.
- Properties valued under $500,000 are entirely tax-exempt.
- Eligible buyers are set to double to approximately 14,500 annually, with potential savings of up to $8,000.
- Newly built homes under $1.1 million also receive exemptions, raising the threshold from $750,000.
- Basic property transfer tax exemption for new qualifying rental buildings, aiming to boost rental construction, effective 2025 to 2030.
- Exemption covers non-stratified rental buildings with at least four apartments, held for a minimum of 10 years.
BC Builds Program
The 2024 budget allocates $198 million over three years for BC Builds:
- Utilizes government-owned land and financing to expedite rental construction.
- $50 million in operating funds and $14 million in capital funds committed for 2024.
- Aims to reduce project build times to 12-18 months.
- All units will undergo means testing, with 20% of apartments offered at 20% below market rates.
These initiatives represent a comprehensive approach to housing affordability, encouraging new construction, supporting first-time buyers, and discouraging speculative practices in BC's housing market.
