New Exemptions for 1st time Buyers - Will it make it easier to buy?
BC's "Quality of Life" budget has created new and important housing opportunities, including a new threshold for first time buyers exemption for the Property Transfer Tax (PTT). Effective Feb. 21, 2007, first time home buyers anywhere in BC purchasing a home up to $375,000 in value are now exempt from the PTT.
Previously, the exemption bar was set higher in some regions than others. While the increase is only slight in some areas, the increase in the threshold in our selling area has gone up $110,000. That's nice. I am all for keeping money in the jeans of the people that make it. I am not sure that this will actually make it easier for new buyers to enter the market though, and may make it easier for them to purchase into an unsustainable property.
If we (the province) can provide incentives for developers to build properties that are in priced in range where mortgage payments are more easily made by first time buyers, perhaps we will see the older homes and townhomes etc on the market ease back in price to the point where new buyers can actually enter the market! Just my thoughts.
Ciao,
Brell