Investors are likely to lose profit based on the recent study of the real estate proposals to look at the affordability of the houses. The study which was published by advocacy group Generation Squeeze elaborated on the time frame taken for Canadians to save us enough money to buy a home.
According to Dr. Paul Kershaw, a professor at the University of British Columbia, who authored the study; Code Red: Rethinking Canadian Housing Policy. The years taken for an average Canadian citizen to save up for a 20 per cent down payment on a house has tripled. To make matters worse he went on to say that the youths of Canada now have to work for at least thirteen months, which is an extra year added to the one year, to be able to meet up and per their yearly mortgage. In other place like BC and Toronto, the time takes about 2 and a half month even at low housing rates.
To shed some light on the issue of affordability, a way to tackle and sort out this problem according to the study’s report is by imposing tax on the property investors, whether foreign or locally.
A statement was made by Eric Swanson who said that the same ongoing issue in regards to the housing problem being faced by the country is a national subject. Which is why a document which was published by Generation Squeeze contains solution concerning with the housing policy, with ten plans when reconsidering Canadian housing policy.
The eye opening problem is the impossibility of making sure the values of current homes do not diminish and still have houses be made affordable.
Kershaw made a statement concerning the 2017 election, to help the younger generation by not letting child care, parental leave, transportation and the rest, cause an increase in second to fourth mortgage payments for them. This can help ease the housing congestion.