Development fees won’t hurt Winnipeg’s market, investor says

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.”

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