Last week, the BC government announced their Budget 2024 for the next fiscal year, which also happens to be an election year.
Part of this budget includes a number of initiatives that the Province will try to use to help mitigate the current housing crisis in BC.
One branch of the government’s strategy includes taking action against ‘speculators’ and those who profit from “flipping houses.”
The hope is that by cracking down on those who seek to buy homes to turn a profit, there will be more homes available for families who are trying to buy a home.
Specifically, a new home-flipping tax is being proposed that would come into effect on January 1st, 2025, if passed.
“Families shouldn’t have to compete with house-flipping investors when they’re trying to buy a home,” said Premier David Eby.
“This tax will deter speculators and give families looking for a place to live an advantage in our housing market.”
The government seeks to slap an additional tax on any home that is sold within two years of it being purchased, with exemptions available to those who face unavoidable life changes, such as death, divorce, job relocation or loss and people who are adding to BC’s housing supply.
Katrine Conroy, BC’s Minister of Finance believes that this will help to ease the burden on the province’s supply and demand housing market.
“We know that people are struggling to find homes to rent or buy in areas that are close to work and their families,” said Conroy.
“We want people to know our government has your back. That’s why Budget 2024 takes further steps to deliver more housing for people faster and make sure homes are lived in.”
See also:
- ‘Urgent need for housing’ drives North Park’s Tiny Town to reopen under new name
- ‘Smoke and mirrors’: Some BC organizations sceptical about Budget 2024
- Here are 12 things to know about British Columbia’s Budget 2024
This tax the BC NDPs hope to have passed before the election will work hand in hand with the already active speculation and vacancy tax which the Province says has helped to free up over 20,000 homes in Metro Vancouver alone.
In addition to this, the new legislation which cracks down on the number of short-term rentals such as Airbnb rentals will also help to free up homes which are expected to flood the housing market when the laws come into effect in May.
“I had been looking for a new apartment—right when the timing of the new short-term rental legislation hit the media,” said Andrew Rideout, a renter from Vancouver.
“Just a couple of days later, more than a few of the listings I was seeing online were obviously ex-AirBnbs. I was able to sign on one really quickly at a decent price with some really good amenities.”
“Without the new rules, my place wouldn’t have been available and I wanted to let Premier Eby know that, at the very least, he helped me snap up a great apartment in my favourite neighbourhood.”
