What’s new for property buyers and owners?

The 2010/11 budget includes new programs for property buyers and owners, including landlords.
 

Property buyers

HST New Housing rebate:
• buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250.

HST New Rental rebate:
• landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit.

Property owners

• Land Tax Deferment for Families with Children: a new program to defer property taxes for homeowners with children under age 18, similar to existing programs for seniors and homeowners facing financial hardship.

Homeowners must have at least 15% equity in their home. Deferred taxes are charged interest at the prime rate.
Owners should be encouraged to seek financial advice before committing to this program.

 • Northern and Rural Homeowner Benefit: starting in 2011, qualifying home-owners will be eligible for $200 in addition to the current Home Owner Grant in areas outside the Lower Mainland and Victoria’s Capital Regional District.

 • Provincial Farm Land Property Tax Credit: starting in 2011, this new program reduces provincial school property tax on farm land by 50%.

 • Industrial Property Tax Credit Increased: starting in 2011, this tax, which reduces provincial school property tax on major industrial (class 4) and light industrial (class 5) properties, will increase to 60% from 50%.

 • Property Transfer Tax Act  –  there are two changes:
        » Property Transfer Tax (PTT) is no longer payable on transfers to correct a conveyancing error.
        » Transfers required to amend a strata plan are PTT exempt, except where owners receive an increased interest.
           Here, PTT is payable on value of the increased interest. 

 • LiveSmart BC: this popular program is back with $35 million in funding over three years to provide grants for homeowners to improve the energy efficiency of their homes, including energy audits, energy efficient retrofits and smart metres.

 • Residential Energy Credit: equal to the provincial component of the HST payable on residential energy to heat homes, this credit will be provided to homeowners and residential landlords as a point of sale rebate on utility bills.

Property owners who buy energy that is not separately metred and who don’t receive the credit on their utility bills, can apply to the provincial government for the credit.
 

What’s happening with the Homeowner Protection Office (HPO)? 

As of April 2, 2010 the HPO will no longer exist. Programs administered by the HPO will be transferred to:
        » BC Housing: residential builder licensing, home warranty, reconstruction levy collection, research and education 
        » Ministry of Finance: administration of the reconstruction loan and interest subsidy programs.

The HPO website will continue to provide information at www.hpo.bc.ca.