February 21, 2018 - NEW Rules take effect
|
|
20% Foreign Buyers Tax + 5% Property Transfer Tax on properties over $3,000,000
|
|
February 21, a 20% Foreign Buyer Tax will be levied on
purchases in the Capital Region - according to the BCREA this tax will
have an immediate impact on transactions underway, but there are some transitional rules, outlined below.
Transitional Rules
If the property is located in the Capital Regional District,
Fraser Valley Regional District, Regional District of Central Okanagan
or Nanaimo Regional District and the property transfer is registered on
or after February 21, 2018, there are two instances where you don't have
to pay the additional property transfer tax:
1. You don't have to pay the additional property transfer tax if the registration occurs before or on May 18, 2018
and the property transfer is subject to a written agreement dated on or
before February 20, 2018. Otherwise you will have to pay the additional
property transfer tax. Note:
If the written agreement is assigned to a foreign entity or taxable
trustee on or after February 21, 2018, the additional property transfer
tax must be paid. 2. You don't have to pay the additional property transfer tax and your property can be registered at any time if:
-
-
The property transfer is subject to a court order dated on or before February 20, 2018
-
The property transfer is subject to an Order Nisi of Foreclosure dated on or before February 20, 2018
-
The property transfer is subject to a separation agreement which was signed on or before February 20, 2018
-
The property transfer is from the personal representative of a
deceased's estate to the beneficiary and the death of the deceased
occurred on or before February 20, 2018
-
The property transfer is to a surviving joint tenant when the death of the deceased occurred on or before February 20, 2018
Also live tomorrow is an increased Property Transfer Tax for properties over $3 million. The Property Transfer Tax will increase to 5 per cent for properties over $3 million.
The
Minister of Finance also announced that a speculation tax will roll out
in Fall 2018. Find more information on this at the end of this
newsletter.
|
|
| How to Benefit from the Hot Property Market |
|
| The Housing Market in Victoria has continued to be extremely hot with both Sellers and Buyers reaping the rewards. The current inventory is lower than average and coupled with low interest rates, the current housing market will continue to remain hot.
If you are planning to sell or buy within the next three months, give me a call and I will ensure you realize the best possible result.
My Best, Arran |
|
|
|
|
| |
