With a new federal government elected, there is a new opportunity to improve housing supply and affordability.
The average price of a home in BC is $963,431. The Victoria Real Estate Board reports the benchmark price of a single family home is $1,181,200 in Greater Victoria.
GST
Inflation has eroded the GST New Home Rebate to being virtually non-existent in Greater Victoria. Prime Minister Mark Carney promised to remove the GST for first-time buyers of new homes under $1 million. Also, the GST New Home Rebate should be indexed to inflation in the interests of program integrity and housing affordability for all new homebuyers.
Infrastructure Grants
The federal government provides significant infrastructure grants to municipalities and could link these grants to new housing approvals boosting supply and affordability.
Renovation Rebate for Health and Safety
Ongoing seismic activity on the west coast is a big concern and a large earthquake could happen any time. In the next 50 years, there is a 30% chance of a damaging earthquake, and a 10% to 15% chance of a massive earthquake. A renovation rebate or tax credit is required for seismic safety.
The federal government approved asbestos in building materials and subsidized asbestos insulation through the Canada Home Insulation Program (CHIP). A rebate/tax credit would promote health and safety in the abatement of this toxic material.
Capital Gains Tax Deferral
Increased housing supply, including rental, is needed to keep pace with our growing population. Deferring the capital gains tax on the sale of rental buildings when reinvested in new projects will increase supply and affordability.
No Capital Gains Tax on Sale of Principal Homes
The previous Liberal government studied a capital gains tax on the sale of principal residences, which only erodes property rights and robs seniors of retirement income. Prime Minister Carney has said no capital gains tax on the sale of principal homes is planned by his government. We trust this remains the case through his term of office.
This column appears Wednesdays in the Times Colonist.
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