Vancouver City is one of the most ethnically diverse and desired cities to live in Canada. In a city with the largest industrial centers, this is where unaffordable housing problems took place. Engaging in a lifetime home investment is a demand not only for those millennials who wish to buy their own houses or condo but also to that medium earner person who cannot afford to downpay them. Is owning a dream home in Vancouver today impossible? In an instance where housing is unaffordable, many will opt to just move to another place where living is possible. And it is very unfortunate for people to do that. In some cases, engaging into brokered nonconforming mortgage, allowing lenders to sidestep ordinary loan prerequisites. And brokers are earning incentives in this kind of market. But what about low-income earners? It could even take 5 years or longer to save for a 20 percent downpayment for the desired home that suits every lifestyle and needs. The earnings are eaten up for the mortgage payments.
In the issue that condo and housing market is way too high to be reached, how does government take action to the overheating crises to the local community?
Federal government implemented the 15 percent foreign buyer’s tax to address the lack of rental and housing affordability. This is a good start in viewing the fundamental change of real estate. In this way, the first-time buyers or primary residences can have a chance to invest in a more comfortable home especially when there is a need to invest in a fitted, bigger house. However, this way of helping primary residential buyers may have a negative impact on real estate agents and house flippers who buy and resell units for a profit.By some means, benefiting to the continued housing crisis. Real estate should not be viewed as a market for profit, but a home instead for community residents.
In early 2017, the government implemented a 1 percent tax to owners of thousands of vacant or empty apartments and houses (for at least 6 months of the year) persuading them to put on sale or rent. Apart from this, a random audit will be done penalizing owners who refuse to follow.
Another way to ease housing market problem is to expand affordable housing units and rental buildings for median earners. Jonathan Hayward/The Canadian press says “current number of listings haven’t been this low” and that based on March 2016 record, transactions are almost 31 percent below still. Shortage of property listings will have to be addressed. I think the government should allocate budget for building and organizing efficient and effective working methods to increase supply. Why? Because the lesser units built, the higher the demand. And probably the prices will continue to increase not until supply comes due to homebuyer’s competition in the market.
People have been speculating possible causes and solutions of this serious real estate issue, yet- Vancouverites are still squeezed. After all, Vancouver should bring back its people and let them live the way they have to be.