The British Columbia 2024 budget announcement is out, and here's a quick rundown of how the recent budget changes might affect you in the world of real estate:

1.        BC Home Flipping Tax:

    o    Premier David Eby has been clear that speculators are in his crosshairs, and with the 2024 budget, his government has announced details of a new "BC Home Flipping Tax."

    o    Starting January 1, any profits made from the sale of a residential home within two years of buying it will be subject to the tax – with exceptions.

    o    The tax will see a sliding scale: 20 percent on profits made on a home sold within the first year, gradually declining to zero after two years of ownership.

    o    Divorce, death, illness, and relocation for work, “among others” would be grounds to avoid paying the tax.

    o    The tax revenues are earmarked toward the construction of new affordable housing in the province.

2.      Speculation and Vacancy Tax Amendments:

    o    Effective January 1, 2024, leaseholders registered with the Land Title and Survey Authority will bear the responsibility of the speculation and vacancy tax. Say goodbye to fee simple owners carrying the load!

3.      Property Transfer Tax Gets a Facelift:

    o    Calling all first-time homebuyers! As of April 1, 2024, the threshold for property transfer tax exemption skyrockets to a fair market value of $835,000.

    o    Newly built homes also get a boost, with the exemption threshold jumping to $1,100,000.

    o    Looking ahead to 2025, transactions involving new purpose-built rental buildings receive a golden ticket. Qualifying purchases can kiss the general property transfer tax goodbye.