Winnipeg has become the latest city to flirt with the idea of introducing a one off development fee for new builds to help fund infrastructure and other costs related to housing projects.
The idea has been quickly shot down by a number of city councillors, with some already publicly expressing fears that such a move would push potential homeowners out of the city.
Others, however, believe it will have little impact on the booming market. “Houses in Winnipeg are still a lot more affordable than other urban cities and while there will be a lot of complaining, I do not believe the cost will have as huge of an impact as others may suggest,” says Marco Silvestri Capital Inc.
Halifax city council is also considering a similar development fee, with Winnipeg reportedly looking for between $10,000 and $12,000 per house.
“We had a one per cent increase in provincial sales taxes and people are still spending as before,” says Silvestri. “The demand is still healthy for housing, from both investors and first-time buyers. I don’t think this will have a huge negative impact on the market. We will all just have to wait and see.”
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate