Canadian Real estate industry worried Liberal housing plan won’t alleviate supply issues
TORONTO — Liberal leader Justin Trudeau presented Tuesday his party’s housing program, but members of the real estate industry are concerned that it won’t address a shortage of supply.
Trudeau’s plan was announced in Hamilton, Ont. at a Tuesday campaign stop. It focuses on helping renters become homeowners with $1 billion in loans, grants, and also includes a two-year moratorium for foreign buyers, prohibiting blind bidding, and a Bill of Rights that gives them a legal right of a home inspection.
Liberals will help first-time buyers under 40 with a new savings account that allows them to save up to $40,000 towards their first home. They can also withdraw the tax-free money to use for their purchase.
Plan also includes a Housing Accelerator Fund that would provide $4 billion to large cities for their housing plans. This fund could be used to build 100,000 middle-class homes in the hopes of reaching 2024-25.
“They treat the symptoms of the problem and not what the real problem is, which is the supply,” stated Ben Young, senior vice-president for development at Southwest Properties, Halifax.
He would like to see the federal and provincial governments open up to development to increase housing stock, as there has been a decline in the number of homes available.
He believes parties should not be as focused on housing tax incentives.
You can always make an ugly property look good while you can’t do anything about a property in a bad location. Only make an offer after you have inspected the property or with a contingency, that the offer is made after the inspection is complete. Do make sure that you will want to live there
Therefore, as a buyer, if you choose to consider FSBOs, you need to have a discussion about who is responsible for paying commissions. : For Sale By Owner (FSBO) Homes Don’t Save Money and Time. It is very important that you keep a record of all the homes that got sold in your locality in the last month
Who will be responsible for inspections? Who will pay for damages, if found? What will the terms of the financing be? When will things come to a close (time)? What happens if there are disagreements? When do you expect to have all things completed and the process come to a successful close? When will possession be delivered? What happens if the dates are not kept? What should a seller expect? What should a buyer prepare for, and so on. There are other legal matters like estate planning and compliance with the Housing for Older Persons Act that have to be considered. The Census Bureau’s information estimates that 7,900 people every day reach that milestone
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