BC Transfer Tax Threshold Increase

The BC government has been making multiple announcements from the end of 2016 to now. The latest announcement is an increase in the Property Transfer Tax exemption threshold for first-time buyers, announced in Budget 2017. The increase, to $500,000 from $475,000, took effect this week.
The increase in the tax exemption threshold is to address the housing affordability in BC. The move will save first time buyers up to $8,000 in property transfer tax. The move has been applauded by the British Columbia Real Estate Association and Urban Development institute for enabling more families to get into the real estate market and ensuring that first time home buyers are not left behind.

What does this mean for real estate investors?

For real estate investors this announcement will not have a major impact to housing prices or rental income. Although saving first time home buyers additional money, the additional saving is not going to be the decision maker in the buying process. The negotiation process and the anticipation of multiple offers is more likely to drive up the cost of purchase in excess of the savings made with this announcement. 

As always, with any government announcements (especially before an election) its important to look past the optics to see what real impact it will have to you as an investor. 
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