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Real Estate Board’s message this election: Help reduce the PTT

 

VANCOUVER, BC – April 23, 2013 –  BC voters head to the polls on May 14 and the Property Transfer Tax (PTT) is a top election issue for the Real Estate Board of Greater Vancouver (REBGV).

 

The REBGV has launched a campaign to raise voter awareness of the need for the next government to reduce the PTT.

“Our goal is to send a strong message to this year’s candidates that it’s long overdue for government to reduce the burden of the PTT on home buyers,” Sandra Wyant, REBGV president said.

To support this campaign, people can “like” our Facebook page at facebook.com/helpreducethepttTo learn more about the PTT and its implications on BC home buyers, visit helpreducetheptt.ca.

The province introduced the PTT 26 years ago. It was structured to add 1 per cent on the first $200,000 of the purchase price, and 2 per cent on the balance. The government of the day touted the PTT as a wealth tax, as just 5 per cent of homes in Greater Vancouver sold for $200,000 or more.

Since 1987, home prices have increased substantially. Yet, after all these years, the tax’s structure hasn’t changed. Today, 96 per cent of homes in Greater Vancouver sell for more than $200,000.

“It’s time to relieve some of the unfair tax burden the PTT places on home buyers and we’d like to know where the candidates and parties stand on this issue,” Wyant said.

The PTT adds $10,000 to a $600,000 home. It annually generates $780 million for the provincial government. This money goes into general revenue to fund public services.

The PTT is paid each time a property changes hands in the development process. When a developer buys raw land, the developer pays the PTT. When a builder buys lots from the developer, the builder pays the PTT. When a home buyer buys a home from the builder, the home buyer pays the PTT. Every time that same home is sold, the next buyer pays the PTT.

The REBGV is asking candidates if they would support increasing the one per cent threshold to $525,000 from $200,000. This would mean that on a $600,000 home, the PTT would be $6,750, instead of $10,000, saving home buyers $3,250.

“We know it would be difficult for any future government to replace the revenue generated from the PTT, but this is a case where the notion of tax fairness needs to apply,” Wyant said. “The next government of BC should adjust the PTT to better reflect the tax’s original purpose,” Wyant said.

The Real Estate Board of Greater Vancouver is a non-partisan association representing 11,000 REALTORS® in Greater Vancouver. For more information about the REBGV visit www.rebgv.org.

Authorized by the British Columbia Real Estate Association, registered under the Election Act, 604.683.7702.

For more information contact:
Craig Munn, Assistant Manager of Communications
Real Estate Board of Greater Vancouver
Phone: (604) 730-3146 
cmunn@rebgv.org

BACKGROUND

What does the PTT cost a Greater Vancouver home buyer? 

Community

Housing Type

MLS® HPI Benchmark Price

PTT

Greater Vancouver

Detached

$906,900

$16,138

 

Attached

$454,300

$7,086

 

Apartment

$362,100

$5,242

Bowen Island

Detached

$572,400

$9,448

 

Attached

N/A

N/A

 

Apartment

N/A

N/A

Burnaby East

Detached

$738,800

$12,776

 

Attached

$404,600

$6,092

 

Apartment

$375,100

$5,502

Burnaby North

Detached

$898,900

$15,978

 

Attached

$400,100

$6,002

 

Apartment

$332,200

$4,644

Burnaby South

Detached

$923,900

$16,478

 

Attached

$411,600

$6,232

 

Apartment

$373,100

$5,642

Coquitlam

Detached

$702,800

$12,056

 

Attached

$381,400

$5,628

 

Apartment

$242,300

$2,846

Ladner

Detached

$632,800

$10,565

 

Attached

$435,200

$6,704

 

Apartment

$301,200

$4,024

Maple Ridge

Detached

$458,400

$7,168

 

Attached

$272,600

$3,452

 

Apartment

$175,000

$1,750

New Westminster

Detached

$657,000

$11,140

 

Attached

$384,100

$5,682

 

Apartment

$272,700

$3,454

North Vancouver

Detached

$936,100

$16,722

 

Attached

$584,100

$9,682

 

Apartment

$342,800

$4,856

Pitt Meadows

Detached

$494,500

$7,890

 

Attached

$322,900

$4,458

 

Apartment

$233,200

$2,664

Community

Housing Type

MLS® HPI Benchmark Price

PTT

Port Coquitlam

Detached

$542,100

$8,842

 

Attached

$368,300

$5,366

 

Apartment

$216,600

$2,332

Port Moody

Detached

$806,900

$14,138

 

Attached

$402,700

$6,054

 

Apartment

$312,500

$4,250

Richmond

Detached

$938,100

$16,762

 

Attached

$487,800

$7,756

 

Apartment

$338,200

$4,764

Squamish

Detached

$494,200

$7,884

 

Attached

$327,100

$4,542

 

Apartment

$241,500

$2,830

Sunshine Coast

Detached

$338,800

$4,776

 

Attached

N/A

N/A

 

Apartment

N/A

N/A

Tsawwassen

Detached

$716,100

$12,322

 

Attached

$443,100

$6,862

 

Apartment

$321,900

$4,438

Vancouver East

Detached

$832,300

$14,646

 

Attached

$507,200

$8,144

 

Apartment

$304,900

$4,098

Vancouver West

Detached

$2,026,400

$38,528

 

Attached

$702,900

$12,058

 

Apartment

$464,100

$7,282

West Vancouver

Detached

$1,810,700

$34,214

 

Attached

N/A

N/A

 

Apartment

$612,400

$10,248

Whistler

Detached

$896,500

$15,930

 

Attached

$428,800

$6,576

 

Apartment

$211,900

$2,238

Source: Real Estate Board of Greater Vancouver. Stats as of March 31, 2013

 

MLS® HPI Benchmark represents a “typical” property within each market. Resale and new homes combined.

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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.