When you are ready to sell your home, one of the best ways to determine the asking price is to create a comparative market report. A comparative market report shows home sales similar to
Property Transfer Tax in BC - Relocating to Vancouver Island?
Dated: May 18 2020
As a real estate professional, I get a lot of questions about Property Transfer Tax. Did you know BC has this tax? It can come as a surprise if you are relocating from another province in Canada!
As many of you know, Vancouver Island is a top retirement destination for those looking to retire in a milder climate! As a licensed real estate agent, my goal is to educate my clients whether they are First-time Home or experienced home buyers! Your real estate purchase is one of the largest investments you will make in your life so it's important to have the facts and be informed.
Property Transfer Tax called (PPT in the industry), is a tax payable on real estate purchases.
How is it calculated?
The amount of the Property Transfer Tax is 1% on the first $200,000 of the property’s fair market value, 2% on the amount between $200,000 and $2,000,000, and 3% on the amount between $2,000,000 and $3,000,000, and 5% of the remaining fair market value.
What is Fair Market Value?
“Fair Market Value” is best described as the price that would be paid for a property on the open market (which is usually the actual purchase price paid for the property).
When are you exempt?
The main exemption is for First Time Home Buyers. However to be exempt you need to qualify.
Here is what you need to know!
The Purchaser (Home buyer) must never have owned an interest in a principal residence anywhere in the world at any time, - Have you ever been a registered owner on a property title even if you didn't live in the home?
Purchaser must be a citizen of or a permanent resident of Canada
Purchaser must have resided in B.C. for 12 consecutive months immediately before the date they become the registered owner, or the Purchaser has filed two income tax returns as a British Columbia resident within the prior 6 years of becoming the owner
The purchase price for a full exemption needs to be under $500,000. There is a partial exemption available from $500,000 to $525,000.
The property size needs to be 1.24 acres or smaller.
The other exemption is the Newly Built Homes Property Transfer Tax exemption
(These homes are often subject to GST - 5% in BC)
You do not need to be a first time home buyer to qualify for this program!
The home needs to be Brand New! Never occupied before
The buyer must be purchasing the home in their name - not a limited company or trust.
The Buyer must be a Canadian citizen or permanent resident.
The property needs to be used as the principal residence and moved into within 92 days of registration. The home buyer must reside in the property for at least 1 year.
The full exemption is for home purchases up to $750,000 and there is a partial exemption up to $800,000.
Once again the property size must be under 1.24 acres.
This program is ideal for downsizers looking to purchase a brand new, low maintenance home or 2nd time home buyers! A great example is, you are going to rent out or sell your current home and move into your new home!
If you have more questions about real estate on Vancouver Island, I look forward to hearing from you! We all move at our own pace, so don't hestiate to reach out now, even if you won't be ready until next year or the following!
Hello! My name is LAURA HEALEY, and I am a realtor living and working in the beautiful ‘Hub City’ of Nanaimo, on Vancouver Island. Thanks for visiting my site! I absolutely love life in my immed....
Latest Blog Posts
Our favorite time of the year: Property Tax Time! But I have good news! You can reduce your property tax bill by claiming your Home Owners Grant! This is a Provincial Home Owners Grant
As a real estate professional, I get a lot of questions about Property Transfer Tax. Did you know BC has this tax? It can come as a surprise if you are relocating from another province in Canada! As