Vancouver Condo Real Estate Video Blog #138 - September 16, 2008
Don`t forget about the property transfer tax
Ian Watt video blogs about the provincial government`s property tax that brings in hundreds of million of dollars to the province of British Columbia. If want to voice your opinion or if you don't care for Ian's comments please email your feedback to ianwatt@ianwatt.ca and visit http://www.ianwatt.ca/RealEstateVideos for all the Ian Watt Real Estate Video Blogs.
Ian Watt: Hi good morning! It’s Ian Watt to Downtown Vancouver. I'm in my office building in the underground right now. However I'm just on my way to do a bunch of showings and one thing I want to talk to you about. If your a buyer in the province of British Columbia there's a wonderful tax called the property transfer tax. It's 1% on the first $200,000 dollars and 2% on the remainder. That is a one time fee that you have to pay when you buy this property and a lot of people forget about that and your realtor should remind you about it. However, property transfer tax that brings a hundred of millions of dollars into the governments pocket cannot be factored in to your mortgage at all it can't be part of your mortgage payment. It has to be in your bank account when you go to close in your property. So keep in mind that you might have a surprise $10,000 dollar fee to pay on top of your legal fees and if it's a new property. It might be acceptable to a GST, well which is 5% right now. Now keep that in mind because there is no way around that unless your a first time buyer buying under a certain but mostly one bedrooms in Downtown Vancouver are not exempt from the property transfer tax. If you want to know more about property transfer tax. You can always email me at ianwatt@ianwatt.ca. Thank you very much and have a great day!