If the new Conservative government plans to re-think NDP-era housing policies and looking to balance the budget, they could start by reassessing an archaic tax that largely benefits wealthy homeowners.<\/p>\n\n\n\n
The BC Homeowners Grant gives more than 90% of homeowners in the province a large chunk of change regardless of their needs.<\/p>\n\n\n\n
\u201cIt’s absurd that we’re giving money to homeowners, many of whom have\u2026 mortgage-free homes, and yet we’re not giving it to those who don’t have homes,\u201d real estate consultant Michael Geller told iNFOnews.ca.<\/p>\n\n\n\n
For Southern Interior residents living in a property worth less than $2.1 million, the grant knocks $770 off their property bill, regardless of their income. Seniors get more \u2014 $1,045.<\/p>\n\n\n\n
\u201cThis is an example of a tax program that really should be reconsidered completely,\u201d Geller said.<\/p>\n\n\n\n
In contrast, those renting in BC and making less than $65,000 a year can apply for a $400 tax credit.<\/p>\n\n\n\n
UBC Centre for Urban Economics and Real Estate director Dr. Tom Davidoff said it was a poor use of government money.<\/p>\n\n\n\n
Davidoff said homeowners are one of the groups that least need government assistance.<\/p>\n\n\n\n
\u201cI don’t know why you would be giving more money to a homeowner than a renter,\u201d Davidoff said. \u201cWhy would you be spending money on homeowners when you could be spending more on people living on the street?\u201d<\/p>\n\n\n\n
BC is the only province with the homeowners grants (other provinces have different grants) which was introduced in 1957 by W.A.C. Bennett\u2019s Social Credit Party, as a way to encourage homeownership.<\/p>\n\n\n\n
Fast forward 80 years, and 67% of British Columbians own their own homes. Across Kamloops and the Okanagan, that number is a few percentage points higher, with homeownership in Kamloops, Kelowna, and Vernon all above 70%. <\/p>\n\n\n\n
Of those lucky enough to own their own home in Kelowna, more than 40% of them have paid off their mortgages. Those homes rose so much in value over the last 25 years, making many of them millionaires. The city is eighth in Canada for mortgage-free living<\/a>; Kamloops 14th.<\/p>\n\n\n\n Geller isn\u2019t discrediting those struggling to maintain ownership and admits it isn’t much of a personal concern, but he questions why BC has the grants at all.<\/p>\n\n\n\n \u201cWhy is the province, which is in debt\u2026 foregoing a lot of revenue from homeowners, many of whom\u2026 are living mortgage-free in expensive houses,\u201d he said.<\/p>\n\n\n\n The retired architect and developer has been talking about the issue for 15 years and says there\u2019s little to no appetite to get rid of it.<\/p>\n\n\n\n \u201cPolitically, I’m told\u2026 it would be suicide to remove this grant,\u201d he said.<\/p>\n\n\n\n If it’s not going to be scrapped, Geller said it should be reformed based on price thresholds and the median value of a property from region to region.<\/p>\n\n\n\n \u201cI still think it’s wrong, but at least it’s more rational,\u201d he said.<\/p>\n\n\n\n Phil Webb worked side by side with the think tank Generation Squeeze and was the force behind a grassroots movement to have BC property tax deferral scheme changed.<\/p>\n\n\n\n