OTTAWA – Canada’s Housing Minister says the federal government plans to take a tougher stance on investment properties to help cool house prices.
The general outlines of the agenda were outlined in the mandate letter that the Prime Minister delivered to the Minister of Housing, Ahmed Hussen.
Among the marching orders to Hussen was dissuading Canadians from seizing profitable properties by revising down payment rules and policies to curb “excess profits.”
Hussen says that cracking down on the rush for investment property and change, as well as deterring foreign investors from holding onto vacant homes, is also part of a push to curb rising home prices.
He says the government would draw a line between family homeowners and large real estate trusts that own hundreds of units as a passive investment vehicle and don’t care if they are busy.
“The point is to reduce speculative demand in the market and help cool these astronomical increases in prices,” Hussen said in an interview Tuesday.
The Canadian Real Estate Association projected in a report this month that the national median home price will have risen 21.2 percent year-over-year to $ 687,500 by the end of 2021.
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The high cost of housing, particularly in major urban centers like Toronto and Vancouver, prompted political parties to promise multiple measures to address housing affordability issues.
The government’s economic update last week included a one percent tax on foreign-owned vacant homes, which the Finance Department estimates will generate $ 200 million in fiscal year 2022-2023.
Hussen says other measures liberals have in mind are beyond the reach of the federal government and will require negotiations with provinces and territories.
Ahmed Hussen says that slowing down the rush for investment property and change, as well as dissuading foreign investors from keeping vacant homes, is also part of a push to curb rising home prices. #Housing #Cdnpoli
These include the promised ban on blind bidding, when sellers choose not to disclose the details of competing offers, or the right to a home inspection prior to purchase.
Hussen is familiar with such negotiations as he was part of the federal push to sign child care agreements with the provinces before winning a new ministerial mandate after the Sept. 20 elections.
But he’s also no stranger to going from the provinces directly to the funded municipalities, and he can do so with a proposed $ 4 billion fund to accelerate the development of affordable housing projects.
The money could help offset the cost of land to build new projects, help local governments hire more planners to speed up approvals, or allow cities to rewrite zoning rules to pressure builders to add affordable units to a project. proposed development.
If cities don’t want to follow the government’s plan and give in to Not In My Backyard sentiment, Hussen said, they won’t have a chance to apply for the cash.
“I think there has to be a national conversation to overcome, at times, what I think is unreasonable opposition to affordable neighborhood housing,” Hussen said.
“These are well thought out, well regulated, well supported plans and sometimes I find there is NIMBYism going on. It’s just discouraging. “
Hussen said he will seek comment on the government’s plans when speaking to provinces, cities and housing providers at a summit early next year.
This Canadian Press report was first published on December 21, 2021.
Reference-www.nationalobserver.com