Anyone thinking about flipping homes to make a quick profit in BC might want to think twice.
Starting on Wednesday (January 1st), the province’s home-flipping tax will be in place to discourage investors from buying housing to turn a quick profit.
People who sell their home within two years of buying will be subject to the tax, unless they qualify for an exemption, such as divorce, job loss or change in household membership.
It is expected approximately 4,000 properties will be subject to the tax in 2025.
All revenue from the tax will go directly into strengthening housing programs and building new affordable homes in B.C.
“The B.C. home-flipping tax is just one more tool in our toolbox to help people find affordable housing,” said Ravi Kahlon, Minister of Housing and Municipal Affairs.
“We’re working to deliver more homes so the people who keep our communities working, like teachers, nurses and construction workers, can find a place to live they can afford in the communities they love.”
In April, new thresholds for the first-time homebuyers’ program and the newly built home exemption came into place.
The threshold for the first-time homebuyers’ program was increased to $835,000 from $500,000.
Qualifying individuals will receive an exemption on the property transfer tax on the first $500,000 of the home’s value.
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