Real Estate

5 Effective Ways to Make Housing More Affordable For Canadians

housing in Canada
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Making life more affordable for families in Canada begins with affordable housing. Therefore, the budget proposes a series of investments to build more housing projects. Providing more housing opportunities depends on policymakers to a great extent. That is why experts leverage the tax system instead of tampering with supplies. Public investment in housing development has been cut to a great extent but the pandemic renewed the interest of people to invest in housing developments to walk towards economic recovery. No wonder the public authorities in Canada have announced a chunk of affordable housing since the pandemic.
Here is how to make housing more affordable for the people of Canada.

  • The Canadian Government is all set to introduce the tax-free first home savings account to allow prospective home buyers to invest a substantial income. It is expected to create over one million housing units over the next few years. Besides, they are to invest in extending the housing initiatives and create over six thousand affordable housing units across Canada.
  • The government is planning to rev up housing prices with a two-year ban on foreign capital entering Canada for buying residential real estate. Moreover, the property flippers also need to pay a fair share of the amount.
  • Protection of home buyers is another agenda on this list through the Home Buyers’ Bill of Rights and introducing a plan to end the bidding.

Steps to make housing more affordable:

People who can afford a home in Tower Ranch Kelowna may borrow as much to gain a foothold in the market. Often, the same set of people goes beyond their means and stretches themselves to contribute to Canada’s record housing debt levels. So, here is how to boost the housing supply to meet the demands of people.

  1. Steer clear of short-term fixes
  2. Boosting affordable housing opportunities in Canada is a humongous task, especially because the country is facing affordability issues in major cities. Although the policymakers are bent on using temporary solutions to fix the problems, relaxing the prudential regulations allows people to borrow more to invest in Fraser Valley & Kelowna. Deducting the tax of mortgage interests and subsidising home purchases is a couple of options to choose from. Unfortunately, increasing the capacity of the potential buyers to borrow and enhance the demand for housing falls flat as it also boosts their capacity to borrow more, resulting in higher debt. An increase in the capacity of borrowing may increase the demand for housing but the effect may not last long.

  3. Enhance the rate of interest
  4. For a little more than a decade, the interest rates have been at an all-time low. Debt was available for free. So, if you kept your money in the bank, a major chunk of it may have already gone for inflation than what would have come with high-interest rates. Mortgage debt is not much different than the other commodities, so people tend to invest in Kelowna commercial real estate when the rates are low. With more people in charge of their finances, it’s easier to outbid the other.

  5. Change the regulation
  6. When it comes to investing in urban land, most cities do not approve of building anything beyond single-family homes. You need to blame the zoning laws for such regulations. Changing the zoning regulations may bring a major change but when? Mere dillydallying during the city council meetings will yield no more than shutting the plans of investment. Now, can this problem be resolved easily? Take the example of BC and abolish the ability of city councils to halt the opportunities for new construction.

  7. Reducing the cost of construction
  8. Do you know the cost of building a house in Kelowna right now?  Ask the best realtor in Kelowna for the construction charges. Begin with queries about the cost of a basic housing unit and find out whether it will match your income or not. Besides, you need to ask whether you must keep aside a budget for a green roof and public art. Take everything inch by inch before going ahead with the investments. Emil Anderson Properties is one of the few companies to develop housing communities across Kelowna, BC. Trust the experts to get affordable housing opportunities in Kelowna.

  9. Assignment sales tax
  10. Another factor to drive up the sale of homes is purchasing pre-construction condo units and selling them before completion. Luckily, this has been a popular way for investors to reap huge financial gains in the real estate markets of Canada.

It’s hard to know how impactful these strategies would be when it comes to offering affordable housing opportunities to homebuyers. So, if you are planning to buy or sell a home, calculate your options before making the correct decision.

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