Conservative Party Shares a Plan to Make Canadian Real Estate More Affordable

The Conservative Party of Canada is not wasting any time in kicking off the election campaign on the right note. It recently shared that it wants to make real estate in the country more affordable. It has even devised a three-pronged approach that will help in achieving this goal.

One of the key reasons why the prices of real estate are high in the country is that there is a dearth of available supply. To tackle this problem, The Conservatives plan to build a million homes in the next three years if they are elected to power.


The Conservative platform read this "It's time to face the fact: We have a housing crisis in Canada. Affording a home - to rent, let alone to buy - is slipping out of reach of Canadians across our country. The primary cause is that supply simply isn't keeping up with demand. Governments have not let Canadians build enough housing to keep up with our growing population."

The Conservative party also stated that it would make it happen by making the most of federal infrastructure investments and release over 15 percent of the real estate portfolio for housing. It also plans to improve the federal lands initiative, convert unused office space into housing, defer capital gains tax when selling a rental property, work with Indigenous communities to ensure their housing needs are met, reinvesting in rental housing, and creating incentives for private landowners and corporations to donate the property to land trusts, which will assist in the development of more affordable housing.

Reduction of Money Laundering and Foreign Investments

To help reduce the real estate prices, the Conservative party will change the Proceeds of Crime and Terrorist Financing Act. It also plans to set up Federal Beneficial Ownership Registry to help contain money laundering.

The Conservatives said, "To arrest and reverse the inflationary impacts of foreign buyers and speculation in the housing market, we will ensure that housing in Canada is truly for Canadian citizens and residents first. The Liberals are on record stating, 'we're a very safe market for foreign investment, but we're not a great market for Canadians looking for choices around housing.' This must change."

Investors living in Canada or planning to move here would be banned from buying homes for two years. Instead, foreign investors will be encouraged to invest in affordable and purpose-built rental housing.

Changes to Mortgages

The Conservative Party will make mortgages more affordable by introducing changes like allowing 7-10 years mortgages for first-time buyers, reducing mortgage stress tests (and eliminating them on renewal), and lessening down payments in high-priced markets like BC and Ontario.

In contrast with the plans of the Liberal Party, the Conservative party says that it won't change the taxation regarding the sale of a primary residence. It stated, "Canada's Conservatives will never tax Canadians' capital gains on the sale of their principal residence, something many within the Liberal Party are threatening to do."

What do you think of The Conservative Party's ideas? Are they just ideas that won’t be implemented if the party gains power in the upcoming September elections or will the party stick to its promises? Share in the comments!

Source:

https://ca.finance.yahoo.com/news/conservative-party-outlines-plan-to-make-canadian-real-estate-more-affordable-173527563.html?

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