Forma condo. What is the trend of the housing market in the next five years? Over the past year, Canadian house prices have soared with rising inflation and the impact of supply and demand.Please Visit: Forma condo to Get Your VVIP Registration Today!
On April 7, the Canadian government released the 2022 federal budget, which developed a series of housing plans aimed at making affordable housing for young people and first-time home buyers in Canada.
Recently, Fang Huilan, Deputy Prime Minister of Canada, tweeted that the federal government attaches great importance to housing. She said the 2022 federal budget proposed a series of major measures aimed at solving this problem.
Like the registered Retirement savings Plan (RRSP), contributions to the tax-free savings account for the first suite are tax-free, while withdrawals for the purchase of the first home will be tax-free, just like the ordinary tax-free savings account (TFSA), “tax-free in and out”.
To help new homeowners reduce their monthly payments, the budget also proposes to extend incentives for first-time buyers until March 31, 2025, so that more people can benefit from it.
Through incentives, the government will provide buyers with interest-free loans of 5% of the purchase price, 10% of the purchase price, to reduce their monthly mortgage costs.
Buyers can repay the loan directly when the loan expires (25 or 30 years) or when the house is sold, or it can be repaid in advance without the need to pay extra fees and prepayment penalty.
In order to provide more housing to Canadians, the government will restrict foreign buyers from buying any type of residential property in Canada over the next two years to ensure that the houses purchased are self-occupied, not just for investment. However, those who hold student visas, labor visas, and first home buyers can be exempted.
In addition, from January 2023, the sale of properties held for less than a year will be regarded as “real estate speculation” and profits will have to be fully taxed as business income. However, exemptions are expected under special circumstances, such as death, disability, giving birth, changing jobs, or selling a house as a result of divorce.
To help Canadians save for their first home, the Canadian government is investing C $200m to launch and expand the Rent and Buy (rent-to-own) program nationwide.
In order to make housing more affordable, the Canadian government hopes to double housing construction in the next decade. To this end, the government will invest C $4 billion to launch a new Housing Accelerator Fund (Housing Accelerator Fund) to help build 100000 new homes over the next five years.
Trish MacKenzie, a real estate agent and real estate expert, says the biggest problem facing the Canadian real estate market is supply.
“the key is how to solve it. There is expected to be more housing supply on the market, and comfortable housing’s construction will be accelerated due to the expansion of the housing acceleration fund and the fast housing program for a year. ”
But the supply may not be as fast as some expect. With interest rates expected to rise this year and the cost of building materials rising, new supplies will only become more expensive.
“I expect we will see more apartment-related deals in the next few years, especially at a time when what used to be seen as low-cost areas are becoming more attractive because of transport convenience and stronger demand because of overall affordability.”
Trish MacKenzie also believes that with the popularity of working from home, smaller urban centers may expand. So how should people prepare for the real estate market in the next five years?
“if you are ready, act now. The reality of the real estate market is that even with the sharp falls in the 1980s and 2009, the value of real estate is increasing over time and growing at a rate higher than the average household income. ”
This means that if you have the ability to act now, you should not wait. Overall, house prices may only go up, so it’s a good idea to buy a house as soon as possible.
She also advises buyers to reconsider their view of the house. Although house prices continue to rise in big cities such as Vancouver and Toronto, there are still some places in Canada where house prices are so low that you lose your chin.