What's Happening in New Westminster, BC…

Those looking to break into home ownership in the province of BC are about to get a big break from the provincial government through a new tax credit that may also impact how home builders advertize new developments in and around New Westminster.

BC Finance Minister Kevin Falcon recently announced a onetime credit of $10,000 for all first time home buyers as the government phases out the HST which has added cost to the purchase of new homes. The HST added thousands of extra dollars to new home construction and made new developments unaffordable for home buyers, critics argued.

The new tax credit will doubtlessly be a marketing point for some builders advertizing new developments and unsold phases in current constructions. Some builders are already creating banner printing to encourage buyers to take full advantage of the tax credit and take possession of new homes before the tax credit program expires in April 2013.

There are some rules that apply to the new credit, however. Resale residences are ineligible, as are presale residences that have not yet been completed with the owner in possession by the beginning of next April. While critics argue that these rules cancel out many of the new developments in both Burnaby and New Westminster, the tax credit will still apply to remaining homes that builders need to offload.

Overall, the tax credit will hopefully give the BC housing sector a much needed boost and prompt a new wave of printings to help encourage home buyers to invest in new developments.