Larry Crowe / The Associated Press files
Santa has plenty of coal to deliver to those who continue to make home ownership a more expensive proposition.
Tonight, all across Canada Santa will be delivering presents to those who have been good all year or at least nice down the home stretch when it counted the most. Those who have been naughty may find a lump of coal in their stocking.
The same goes for the national housing scene. Some have been Grinches this year by making life difficult for homeowners and those wanting to buy a home. Others get additional praise and presents for realizing that the residential construction industry is an economic driver and that home ownership results in strong communities.
Most readers are now anticipating me to take a well-deserved shot at Winnipeg’s mayor and city council for their ill-advised creation of the Growth Tax or Impact Fee. Not so. One, this is a national perspective article. Two, local kudos and condemnations come next week with the year-end review. Three, that’s just too easy.
National research indicates 94 per cent of Canadians want ground-oriented, low-rise housing, but policy and land costs often prove prohibitive. There are three buyers for every two low-rise homes being built.
Development taxes total more than $6 billion nationally and increasing daily. The federal government has increased its major infrastructure projects funding level from 33 per cent to 50 per cent. This should result a reduction of the burden on new homebuyers to provide that funding.
Taxing a tax creates an unfair system for consumers. GST should not be applied on top on municipal and provincial taxes. GST is for goods and services. A tax is neither good nor is it a service. Development taxes and land transfer taxes should not be further taxed.
Recently, the Ontario government announced a land transfer tax rebate up to $4,000 for first-time homebuyers. In British Columbia, the government announced it will match down payment funds of eligible first-time homebuyers up to $37,500 with a 25-year term second mortgage. Presents for them.
We saw changes to the mortgage rules earlier this year that resulted in seven to 10 per cent of new homebuyers who previously would have qualified for a mortgage being dropped out of the market. This knee-jerk reaction to a Vancouver/Toronto problem impacted the entire country. Coal for this one.
The tariff on imported drywall added anywhere from $2,500 to $10,000 to the price of a new home. Hopefully, we will hear that the initial ruling has been repealed in the new year.
Santa will most definitely be stopping in Ottawa this Christmas with a bag full of presents for those who have been positive, proactive and progressive. However, he will also have plenty of coal for those who still insist on taxing housing beyond affordable levels.
Mike Moore is president of the Manitoba Home Builders’ Association.
