BC Downsizer\'s Guide

Sell first in most BC markets. The math: typical Greater Vancouver downsizer carries $1.5M+ in family-home equity and $200K–$400K target condo down payment from that equity. Buying first means bridge financing or a riskier subject-to-sale offer; selling first locks in your sale price, gives you a known cash position, and removes the worst-case "carrying two homes" scenario. The downside is temporary housing for 30–90 days. We solve that with a long completion-and-possession date on the sale (60–90 days) plus a flexible offer on the condo.

On a principal residence — usually no. The principal residence exemption (PRE) typically eliminates capital gains tax on the sale of a primary home. Edge cases: if a basement suite was rented, if you owned a vacation property simultaneously and need to allocate PRE between them, or if the home was rented for some years. A CPA review is worth $300–$500 and can save five-figure tax surprises.

Regular BC Property Transfer Tax applies on the new purchase: 1% on the first $200K, 2% from $200K–$2M, 3% above $2M, plus 2% on residential value above $3M. Most downsizer purchases land in the 1–2% bracket. Note: the First-Time Home Buyer exemption does not apply (you've owned before), and the Newly Built Home exemption applies only to truly new builds. On a $900K Burnaby condo, regular PTT is $16,000.

BC Home Flipping Tax (Bill 15) applies if you sell within 730 days of purchase. Federal anti-flipping rule (full income inclusion) applies if you sell within 365 days. For a downsizer who has owned the family home for 15+ years, neither applies. Your sale will be treated as a normal long-held principal residence under both regimes.

A great option for many BC downsizers, especially if you're unsure between Vancouver West Side, North Shore, or a quieter Fraser Valley setting. Renting for 12 months: lets you test the lifestyle, locks in your sale proceeds (invested in GICs/HISAs at 3–4%), avoids buying-then-selling within 1–2 years (which can trigger the BC Home Flipping Tax even on a primary residence). Downsides: rent is "dead money," and BC condo prices have risen meaningfully over most 12-month periods historically.

Ten things I check on every downsizer condo: (1) age 5–15 years (avoids 2-5-10 warranty gaps and avoids old-stock special assessments), (2) strata depreciation report fully funded, (3) elevator + accessible suite layout (future-proofing), (4) in-suite storage or a separate locker, (5) parking (1+ stalls, EV-ready preferred), (6) low monthly strata fees ($350–$550/month sweet spot), (7) walkable to grocery + medical + transit, (8) building amenities you'll actually use (often <50% of what marketing implies), (9) pet rules (if applicable), (10) age restrictions / rental restrictions.

A real conversation. The family home often has more emotional weight than financial weight to adult kids. My job: present the math (what your downsize cash position would mean for retirement income, healthcare flexibility, gifts to kids, etc.) so the family conversation has a concrete number to anchor on. Most adult kids end up supporting the downsize once they see the after-tax retirement-income improvement.

Yes — gifts of cash to adult children are not taxable in Canada (no gift tax). The kids don't pay tax to receive it; you don't pay tax to give it. Common BC pattern: downsizer sells $2.0M family home, buys $900K condo, gives $200K–$400K to one or two adult kids as down payment for their own homes (or invested for retirement). Document the gift in a letter ("I, [parent], gift to [child] $X with no expectation of repayment, for the purchase of a home at [address]"). Lenders ask for this routinely.