John Tillie, president of the BC Real Estate Association, wrote in the Vancouver Sun today that the province is offering a partial rebate of the provincial portion for the 12% HST on new homes up to $400,000 and a flat rebate of $20,000 for new homes over $400,000. The logic for this is that people buying at or below the median price will "generally be fully protected from a tax increase".
Many Buyers cannot afford to complete on new development at the moment and properties completing in the next two to three years have already been sold to Buyers who did not count on a large additional cash expense. Buyers of new development will seek to recover the extra tax when selling their property which would decrease affordabilty of BC housing.
The different real estate organizations in BC are negotiating on how to best negotiate this subject with the provincial government. Let's hope Buyers of new homes will not have to pay 7% more tax.
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