Ryan Out Loud - This Week in Housing (May 26th, 2022)
What are we looking at here today on This Week in Housing?
Real estate mistakes to avoid... candidates running in the upcoming provincial election & their stances on affordable housing... the new federally proposed anti-flipping tax & more!
Provincial Election & Affordable Housing
It's a big topic question we're seeing right now is a very hot topic affordable housing, especially as the market is the way it is right now.
While visiting the real estate board at one of the Sarnia-Lambton Chamber events a few weeks back, I don't think anyone really gave us a clear answer on how to fix affordable housing and how they're going to move forward.
It seemed like most of their answers, as usual, were not a direct answer. Just more taxation of investment properties and things that are unlikely to actually help, while hurting local entrepreneurs. I don't see any clear answers coming in this provincial election.
Do you think any of these candidates actually have a true winning strategy for how to fix affordable housing here in Sarnia-Lambton, or in the the province? My view: I think it really comes down to cutting down the red tape to make it easier to develop land and get homes built faster.
The same goes with reducing costs to get permits. And that alone would cut down so much red tape in Ontario. Why do we have the land transfer tax to electronically change the ownership of land for about 1% of the purchase price? That's a huge barrier right there, considering the average home price in Sarnia-Lambton is $500,000.
And if you're not a first time home-buyer, that's about a $5,000 tax. That could be a big barrier to someone and could make or break their purchase. So we should see what happens on that.
Outdoor Space for Cooking
Another great article we have is about creating an outdoor space for cooking in your yard. I love outdoor kitchens. They're perfect for entertaining. When you're designing your outdoor kitchen, think about the connection between the indoor and outdoor spaces. For example, what will be the path from inside to outside?
Think about what fuel source you will need. This includes things like natural gas and propane. You need to make sure that you will have access to these things.
You can find ideas for your home's design online by looking at websites like Google and Pinterest. You don't need to spend a lot of money on an outdoor kitchen set to make your yard look great.
Adding a home addition can be a great way to improve your property without spending too much money.
Community Centre in Watford
The Watford community is getting a new community centre. They have raised over 1 million dollars for the project. This is great news for the town and the new community centre. This community centre is great for housing in the area. It's just another draw to buy in those small rural communities inside of Lambton County.
Apartment Complex Near Lambton Mall
There is a major apartment complex proposed near Lambton Mall. Do you remember the Lambton Nine Cinema movie theatre? Norm's Pub, or The Green Room as it was called before that? I think everyone has memories there. Developers want to build apartment buildings there.
This is another perfect example of affordable housing and we should be fast-tracking this. It would be great for the tax base with 324 rental units right by the college.
Some of them maybe can house students and that will help free up some housing in areas like Sherwood where we're using residential homes as student rentals when, maybe, we shouldn't be.
Students would be close enough to college and grocery stores that you wouldn't even need a car to live there. All the shopping is there, the malls there, you're on a transit route, and highway access. It's a no brainer. I really hope to see the city fast track this and get this approved ASAP.
My opinion: Let's get up and running because the longer these things wait is, the more they're going to cost. That's the big problem with these projects here.
Mistakes To Avoid When Buying a Home
Some mistakes you should avoid when buying a house in Sarnia-Lambton:
- Not taking into account market changes before selling your home can be a costly mistake. Make sure to research what the average selling prices are in your area and price your home accordingly. If the market shifts while your home is on the market, you may end up having to sell it at a loss.
- Not getting an appraisal for your buying price is a big mistake. An appraisal will help you know how much your home is worth. You need to have an accurate idea of what your home is worth in order to find a buyer who is willing to pay that price.
- Pre-qualifying is not in-depth and is an extremely simple & casual glance at the numbers. Pre-qualifying has zero value when it comes to actually taking action and buying a home. Pre-approval, on the other hand, means the lender will formally run numbers, and input a ton of data, which helps them to determine exactly how much they are willing to lend you.
Want more? Check out the article below under "References."
Anti-Flipping Tax Proposal by the Federal Government
Do you think that taxing people who are improving and flipping properties will help to slow down the market? Do you think it will have the effect they want? Will it increase or decrease the available housing stock? Not sure, but I sure know that meddling usually doesn't have the positive effect they intend.
A couple of things very wrong with this Federal Government saying, yeah, we're going to add money to the budget. And I think they said something like $52 or $62 million, which is a lot of money, but really isn't a lot of money in the grand scheme of things and it doesn't create any more housing stock.
The Federal Government said that they are going to add $62 million dollars to the budget by taxing these workers. This is a lot of money, but it is not a lot compared to what the government spends on other things. And this money will not create any more housing stock.
And people are just going to bypass the tax by renting the space for a year during flips, which further reduces housing. They are just going to factor into their costs f holding that home for a bit longer and renting it out.
Do people like outdated homes with broken down appliances and outdated colours? NO! People actually like buying fixed up homes. If you look at the homes that go crazy with bidding wars, they are almost always the fixed up homes, while the homes that are estate sales and they need work those aren't going nearly as crazy as the ones that are all fixed up.
My opinion: They kind of missed the mark on that and it seems like it could do more harm than good.
References:
blackburnnews.com/candidates-sarnia-lambton
https://theobserver.ca/housingshortage
https://www.realtor.ca/blog/OutdoorKitchen
www.advisor.ca/anti-flipping-tax
