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First Time Buyers Get A Break!


February 18, 2014

Government reduces tax burden on first-time buyers

First-time home buyers received welcome news in today’s provincial budget. Any REALTORS® currently working with first-time buyers will want to share this news with them as soon as possible.

The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.

The government estimates this measure will cost $8 million in lost tax revenue each year.

The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years.

In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. 

In 2005, the government increased the threshold to $325,000 from $275,000.

The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.

Here is a link to the Budget.: http://www.bcbudget.gov.bc.ca/2014/default.htm




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How Long Does it Take to Find a New Home?


cartoon house

If you're planning to look for a new home sometime in the future, you may be wondering how long the process will take. How much time should you set aside for viewings? How many of the listed homes should you see?


Of course, the process varies from person to person. According to the Department of Housing & Urban Development, home buyers view an average of 15 properties before finally choosing to make an offer on one of them. That number may be a good benchmark for you.


On a Saturday afternoon, you can comfortably look at three or four potential properties. You can see more if you want to make a full day of it.

 

One factor that impacts the home shopping process is how clearly you know what you're looking for.


For example, if you're certain you want a three bedroom backsplit, backing onto a wooded area or ravine, in an upscale neighbourhood, then the process is going to be fairly simple. You're just going to view properties that closely meet that criteria.


But if you're the kind of person who simply says, "I'll know it when I see it", then you'll need to look at several homes on the market. That means carving out plenty of room in your schedule for viewings.


A good REALTOR can help you understand what's available on the market and which homes are worth seeing. He or she can also help you determine how long the process will likely take, and show you ways to make the process go more quickly and smoothly.


Looking for a good REALTOR? Call today