It’s budget time so here’s a new home tax credit

The new BC budget is all about austerity, cutting back and living within our means to bring down the debt. With that in mind anyone buying a new home gets a new $10,000 tax credit.

In his budget, Mr. Falcon pledges to sell off public assets, to raise medical service premiums and tobacco taxes, to cancel a promised small business tax cut. Mr. Falcon also is promising to hike the general corporate tax in two years, if the fiscal picture doesn’t brighten.

Mr. Falcon’s $44-billion budget on Tuesday offers several tax measures benefiting seniors and young families but the impact will be slight.

The province is introducing several new tax credits including a grant of up to $10,000 on newly-constructed homes for first-time homebuyers. Seniors will be able to claim up to $1,000 for eligible home renovations. And families will be able to collect up to $50 for each child for fitness and art programs.

Article in the Globe and Mail.

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Bilbo Bloggins
Bilbo Bloggins
8 years ago

Unfcknbelievable.
Why can’t I get a tax credit for buying a new car or a laptop.
Why does one industry constantly get the subsidies at the expense of everyone else.

bailinginbc
bailinginbc
8 years ago

I agree with the comments of 900kCrackhouse especially number two.
Also one of the things I liked about the old format was that comments that got voted up to 20 were highlighted which was excellent if you were rushed for time.
Love the blog, thanks for your hard work!

900kCrackHouse
900kCrackHouse
8 years ago

The new forum comment interface seems good overall, but a few comments:

1) The stuff on the LHS and RHS of the screen take up too much space vs the comments. It now feels too cluttered.
2) The problem with nested comments is that the reader needs to go back and keep reviewing old posts to see if anyone has posted a response. I would prefer the option (if possible) to see comments posted sequentially in the order in which they are posted so that I don't have to repeatedly go back and review old posts looking for new responses. Really good responses are going to be missed by a lot of people with the current implementation.

Other than that, love this forum. Now if only the housing prices would start dropping a little faster. 🙂

Devore
Devore
8 years ago
Reply to  vancouvercondo

The left side floating window is taking up much more space than it used to, which was already quite a bit if you are reading in a window, as opposed to full screen. Horizontal scrolling on the interwebs = teh devil.

Scott
Scott
8 years ago
Reply to  Devore

When I shrink the window the left sidebar disappears, does that work for you too?

Annonymous
Annonymous
8 years ago

If you're a bear, I don't see this incentive as a bad thing. First, it's likely to put another nail in the coffin for the re-sale market. Second, it's likely to increase supply further by stimulating new development. It's certainly going to be no saviour to the move-up buyer that's relying on the first time buyer to buy their condo.

jumpin in
jumpin in
8 years ago

http://www.bloomberg.com/news/2012-02-22/why-rent
Shilling: Why Renters Rule U.S. Housing Market (Part 1)

Patiently Waiting
Patiently Waiting
8 years ago

How long before real estate agents specializing in used condos start complaining, and demanding the $10K subsidy for their customers?

jesse
8 years ago

the sales gimmick of cash back or incentives seems to work better than discounts, don’t know why but I’m no salesman. The cash back is a scheme and for whatever reason the government thinks the development industry needs a boost. In parts of the province it’s starting to look a bit “United Statesy”, and two guesses where the marginal ridings are located.

I wouldn’t be surprised if these days some people think new houses trade at a premium compared to one sold yesterday but never lived in.

patriotz
patriotz
8 years ago

"No different from Ford offering rebates for a new Focus"

Plenty different, that's Ford's own money.

An outright gift from the taxpayers to the developers.

Homework question: what happens to the market price of the new property after it's sold to the first buyer?

Annonymous
Annonymous
8 years ago
Reply to  patriotz

"Homework question: what happens to the market price of the new property after it's sold to the first buyer? "
I had the same thought. Same reason why it was rather silly that buyers rushed to beat the HST or even the new mortgage rules.

VMD
VMD
8 years ago

Official BC First Time Home Buyer Bonus PDF document:
https://docs.google.com/file/d/0BwcmnQtlQnGoNzQ3M

VMD
VMD
8 years ago

For those interested in immigration news. I witnessed this kind of abuse/scam several times already.

Unlike Canada and the United States, Australia, Britain, South Africa, New Zealand and many European countries have rules in place where citizenship is not automatically granted to foreigners who give birth there.

Officials in Immigration Minister Jason Kenney's office said changes are coming to strengthen laws.

"We are aware of crooked consultants who encourage pregnant women to illegally travel to Canada to give birth and gain access to Canada's considerable benefits," said Candice Malcolm, a spokeswoman for Kenney.

"We condemn the practice of circumventing our laws to game the system."

Changes being considered include making pregnancy exams a condition of obtaining visas, and rewriting rules so automatic citizenship does not come with birth on Canadian soil.

http://www.torontosun.com/2012/02/21/pregnant-chi

Devore
Devore
8 years ago
Reply to  VMD

In fact, it is the rule, rather than exception, to NOT grant citizenship on birth to non-citizen parents.

VMD
VMD
8 years ago

There seems to be some confusion in another forum about how much one can actually save from the credit. Which one is it? 1. you pay $10,000 less tax 2. you pay $10,000 * 5.06% (BC's lowest income tax rate) = $506 less tax 3. your income is reduced by $10,000 (but it would've been called tax deduction then..) Thanks for the clarification "The new BC First-Time New Home Buyers' Bonus will be a temporary one-time refundable income tax credit for first-time home buyers who purchase a newly constructed home. The credit will be calculated as five per cent of the purchase price of the home up to a maximum credit of $10,000. The credit will be phased out at a rate of 20 per cent of net income in excess of $150,000 for single individuals and at a rate… Read more »

900kCrackHouse
900kCrackHouse
8 years ago
Reply to  VMD

Yes, I have the same question, but do not have the answer. It was not clear at all.

tincup
tincup
8 years ago

Oh yeaaah! We gave up and left Vancouver six months ago and were planning on taking our hefty downpayment and building an ocean view house anyway.

raincity
raincity
8 years ago
Reply to  tincup

Living in Vancouver it can be hard to remember that not everywhere in BC is as insane. $10k would actually be a nice little perk if you were going to be building an ocean view home in some parts of the province. In Vancouver the percentages just don't add up to make any difference.

@_Sheepster_
8 years ago

I'll keep my comments to myself, at least until it gets sorted out.

Aaron Chipman
Aaron Chipman
8 years ago

My uncle Dave says it’s Econimics 101.

paulb
8 years ago

New Listings 272
Price Changes 96
Sold Listings 143

TI:14608
http://www.laurenandpaul.ca

Tony
Tony
8 years ago

I have a pop up bubble ruining my view of the comments!

Tony
Tony
8 years ago
Reply to  Tony

This Vancouver Peak Bubble Forum pop up is the worst!

Tony
Tony
8 years ago
Reply to  vancouvercondo

Yes, thank you!

Clockbike
Clockbike
8 years ago

For the new $10,000 tax credit, what constitutes a newly constructed home? How new are we talking here?

Best place on meth
Best place on meth
8 years ago
Reply to  Clockbike

Never owned.

jesse
8 years ago
Reply to  Clockbike

I think any home for which there would be HST applied. Agree with some people here, this looks like a "cash back" deal, an extra perk the salesman can use to entice someone to buy. No different from Ford offering rebates for a new Focus.

ReductiMat
ReductiMat
8 years ago

So how much house can one get with little-to-no down and a household income of $199,000 a year?

Dave
Dave
8 years ago

At least they are listening. Good move Mr. Falcon. That helps first time buyers.

Absinthe
Absinthe
8 years ago
Reply to  Dave

Nope. It'll just raise all the prices by $10K.

ReadyToPop
ReadyToPop
8 years ago

Must be some angry bulls out there with a lot of spare time on their hands. BTW the Peak Bubble Forum column on the left hand side stays fixed and starts to gobble up half the screen, when you're stretching the middle of the page to read on a mobile device. Other than that, it looks like a bang-up job of bringing the site back up! I was starting to miss it.

Wreckonomics
Wreckonomics
8 years ago

I think we need a $10k credit to help out Mr. Ten Volt:

[youtube bSslVb3LPqU http://www.youtube.com/watch?v=bSslVb3LPqU youtube]

raincity
raincity
8 years ago

So this is $10k that will just go into the pockets of builders. I guess Dave is happy.

Best place on meth
Best place on meth
8 years ago
Reply to  raincity

Dave won't be happy until all revenue that went to the government gets transferred to the developers.

Dave
Dave
8 years ago

It benefits consumers. Economics 101.

Best place on meth
Best place on meth
8 years ago
Reply to  Dave

That's right Dave. More profits for developers benefits everyone, even orphan kids in Zimbabwe.

Flip Flop
Flip Flop
8 years ago

He is kinda right though. More profit = lower prices. Competition happens at the margin.

A consumer in BC
A consumer in BC
8 years ago
Reply to  Dave

Sure does. It takes money out of my pocket to assist others. So I now have less to spend. Oh wait, how does this help me?

vangrl
vangrl
8 years ago
Reply to  vancouvercondo

yup this new one is much better!

ReductiMat
ReductiMat
8 years ago

This comment system is way better. WAY better.