Real Estate

Property tax deferral

  • Last Updated:
  • Aug 31st, 2020 11:16 am
Deal Guru
Jul 7, 2017
10191 posts
5514 upvotes
SW corner of the cou…

Property tax deferral

BC has a programme where seniors (anyone 55 or older) can defer property taxes on primary residences. Interest charged no more than Prime - 2%.

Is there any reason not to take this up (other than restrictions)? I can see a tax advantage if one has absolutely no income other than from investments (e.g., no pension) as it is akin to borrowing money to invest. Rationale: If one had to pay property tax, one will have to take money out of the investment account to pay property tax. The deferment is essentially borrowing money to invest.

Thoughts?
I smile when I see container ships sailing past my house laden with stuff made in China
2 replies
Deal Fanatic
Oct 7, 2007
9401 posts
5364 upvotes
thriftshopper wrote: BC has a programme where seniors (anyone 55 or older) can defer property taxes on primary residences. Interest charged no more than Prime - 2%.

Is there any reason not to take this up (other than restrictions)? I can see a tax advantage if one has absolutely no income other than from investments (e.g., no pension) as it is akin to borrowing money to invest. Rationale: If one had to pay property tax, one will have to take money out of the investment account to pay property tax. The deferment is essentially borrowing money to invest.

Thoughts?
Some of my retired neighbours do this claiming they can do better investing with the money instead of using it to pay down their property tax.

The only thing I can think of that might be a concern (but not really) is that there may be something registered on the title to your house by the government.
Deal Guru
Jul 7, 2017
10191 posts
5514 upvotes
SW corner of the cou…
choclover wrote: Some of my retired neighbours do this claiming they can do better investing with the money instead of using it to pay down their property tax.
At P-2 and potential tax deductibility, it makes sense as long as the Ponzi scheme of RE (as my friend in the U.S. who has/had several properties puts it) holds up and house prices don't decline.


The only thing I can think of that might be a concern (but not really) is that there may be something registered on the title to your house by the government.
They do. Not going to get an unsecured loan at that rate which is fair enough. Just paid from house sale proceeds when you sell (or perhaps for those using it, the executor does on behalf of the estate).
I smile when I see container ships sailing past my house laden with stuff made in China

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)