The aim of B.C.’s home flipping tax is to prevent investors from buying up housing to turn a quick profit.
B.C.’s home flipping tax comes into effect on Wednesday, Jan. 1, 2025.
First announced in February, the B.C. NDP had said the tax would target those profiting from speculative real estate activity, which in turn pushes up the cost of housing across the province. The aim is to prevent investors from buying up housing to turn a quick profit.
“Everyone should be able to afford a home in their chosen community, but high home costs and real estate speculators are making that a challenge,” said Finance Minister Brenda Bailey.
“We are working to ensure there are more affordable homes available for people, whether they’re renting or buying, through measures like the B.C. home-flipping tax and property transfer tax exemptions.”
The tax applies to owners who sell their home within two years of buying, though there are exemptions in place for those who sell due to divorce, job loss or change in household membership.
About 4,000 properties could be subject to the tax in 2025. Revenue collected from the tax will go to “strengthening housing programs and building new affordable homes in B.C.”