B.C.’s just-released budget is a mixed bag for B.C.’s construction industry, according to the Greater Vancouver Home Builders’ Association (GVHBA).
“We were hoping that there would be some measures in the budget that would address the HST on home renovations; there was none,” said Peter Simpson, GVHBA president and CEO.
“So we’re still left with challenges with the underground economy and with people sitting on their wallets, delaying their decisions to do home renovations.”
However, Simpson commended the government for two budget measures: a seniors’ home renovation tax credit of up to $1,000 and a first-time homebuyers’ tax credit of up to $10,000 to buy newly-constructed homes.
The latter move, he said, not only allows first-time homebuyers “that typically have to use the bank of mom and dad” to get into an expensive real estate market – but also means a boost for the construction industry.
“[Tying it to] newly built homes spurs construction jobs,” he said, commenting that each new housing starts creates three person-years of employment.
Simpson said the seniors’ home renovation tax credit and the first-time homebuyers' tax credit, together with last week’s announcement of PST-transition rules that are geared at encouraging home buyers back into he market before the transition, are likely to boost B.C.’s construction activity.
“It’s sure not going to hurt,” he said.
@JennyWagler_BIV
