Highlights: BC Home Flipping Tax Now in Effect
As of January 1, 2025, the BC Home Flipping Tax is officially active. This new tax targets speculative property flipping to promote long-term homeownership and market stability. It applies to properties sold within 730 days (two years) of ownership, including sales of presale contracts or assignments. The tax rate starts at 20% on profits for properties sold within the first year of ownership and gradually decreases, reaching zero after two years. Importantly, this tax applies to individuals, corporations, partnerships, and trusts, regardless of residency status.
Certain exemptions are available to homeowners. Primary residences can qualify for exemptions if specific criteria are met, but filing the appropriate paperwork is mandatory. Life events such as death, divorce, job relocation, or forced sales due to natural disasters may also allow for exemptions, provided the proper documentation is submitted.
The BC Home Flipping Tax differs from the federal property flipping tax. The federal tax applies to properties sold within 12 months, treating profits as regular income, while the BC tax spans a two-year timeline with a sliding tax rate. It is possible to be subject to both taxes depending on your sale’s timing and circumstances.
To navigate this new tax, homeowners should consider a few key strategies. First, aim to hold onto your property for at least two years to avoid the tax entirely. Second, familiarize yourself with the available exemptions and ensure you file the necessary paperwork if eligible. Third, plan ahead and factor in potential taxes when calculating your property’s profits. Lastly, seek guidance from a tax advisor or professional to fully understand your obligations and minimize your tax burden.
By staying informed and planning strategically, you can navigate this new tax effectively and make informed decisions about your property investments.
As the year comes to a close, I want to take a moment to express my deepest gratitude for your trust, support, and friendship. Whether we worked together this year or in the past, your belief in me has been invaluable, and I am truly honored to have been part of your journey.
2024 has been filled with exciting milestones and memorable moments, and I couldn’t have achieved them without amazing clients and friends like you. I am so grateful for the opportunity to help you with your real estate goals and look forward to continuing to support you in any way I can in the future.
As we welcome 2025, I wish you and your loved ones a year filled with health, happiness, and prosperity. May this new year bring fresh opportunities, new adventures, and plenty of reasons to celebrate.
Top 5 Tips for Selling Your Home During the Holidays
The New Year is a time for fresh starts and ambitious goals, but sticking to those resolutions can feel like an uphill battle. Studies reveal that nearly 70% of people abandon their resolutions within months. The good news? With the right approach, you can set yourself up for success. Here are five expert-backed strategies to help you stay on track and achieve your goals.
1. Start Small and Build Momentum
Rather than overhauling your life overnight, break your resolution into smaller, manageable steps. For example, instead of vowing to “get fit,” commit to taking a 10-minute walk every day or swapping one unhealthy snack for a healthy option. Small wins build momentum and confidence, making it easier to stick to your plan.
2. Focus on the Bigger Picture
Think about what achieving your resolution will help you accomplish. If your goal is to save money, imagine the vacation you’ve been dreaming of or the financial freedom you’ll gain. Keeping your “why” in mind gives your resolution purpose and makes it easier to stay motivated.
3. Frame Your Goals Positively
Rather than framing your resolution as breaking a bad habit, think in terms of creating a positive goal. For instance, instead of “stop procrastinating,” set a goal to “spend 15 minutes every morning tackling important tasks.” This approach focuses on growth and progress rather than deprivation.
4. Find a Support System
Don’t go it alone! Share your resolutions with friends or family members who can encourage you along the way. Even better, find a buddy with a similar goal so you can hold each other accountable and celebrate progress together.
5. Practice Self-Compassion
Nobody is perfect, and slip-ups are part of the process. When you miss a day or fall short of your goal, be kind to yourself and move forward without guilt. According to Tamara Russell of the British Psychological Society, practicing self-compassion can not only help you stick to your resolutions but also make you more compassionate toward others.
Resolutions are an opportunity to grow, not a test of perfection. By starting small, focusing on the bigger picture, framing your goals positively, enlisting support, and being kind to yourself, you can turn your New Year’s intentions into lasting change. Here’s to making this year your best one yet!
New listings at 10-year high in 2024, but affordability still the elephant in the room in Fraser Valley
SURREY, BC — Bank of Canada interest rate cuts that began mid-year were not enough to ease the affordability crisis for many home buyers in the Fraser Valley in 2024, leading to a decline in annual sales.
The Fraser Valley Real Estate Board reported new listings of 35,698 for the year ended December 31, 2024, a 10-year high and nine per cent above the 10-year average. However, annual sales recorded on the Multiple Listing Service® (MLS®) were the lowest seen in ten years at 14,570, a decline of one per cent over 2023 and 24 per cent below the 10-year average. The City of Surrey accounted for the majority of 2024 sales at 51 per cent, with Langley and Abbotsford accounting for 24 per cent and 15 per cent respectively.
The composite Benchmark home price in the Fraser Valley closed the year at $965,000, down two per cent year-over-year, and down four per cent from its 2024 peak in March.
The Board recorded 994 sales on its MLS® in December, a decline of 13 per cent from November, but 19 per cent above sales from December 2023.
New listings declined 46 per cent from November to December, from 2,367 to 1,288, contributing to a 23 per cent decline in overall inventory in December. With a sales-to-active listings ratio of 16 per cent in December, the overall market closed out the year in balance. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.
It took longer to sell townhomes and condos in December compared to November. Townhomes spent 36 days on the market, up from 33 days in November, while condos spent 38 days on the market, up from 36 days in the previous month. Single-family homes spent 43 days on the market — no change from November.
The composite Benchmark home price in the Fraser Valley continued to slide for the ninth straight month, down 0.5 per cent compared to November.
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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), 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 GVR, 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 GVR, the FVREB or the CADREB.