It'll be interesting to see if the 60/40 financing scheme helps.
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It'll be interesting to see if the 60/40 financing scheme helps. While the cost subsidy is obviously the main thing, the conditions of who can buy are also important. Essentially shutting out foreign speculation and focusing on people purchasing a home long-term.
btw... if a government has to subsidize 40% of the purchase price of a home, does that mean the market effectively needs a 40% correction to be affordable again?
#BCPoli #Housing #Affordability
https://www.cbc.ca/news/canada/british-columbia/heather-lands-vancouver-2600-homes-1.7328074 -
Amginereplied to Chris Alemany🇺🇦🇨🇦🇪🇸 last edited by
Your toot inspired me to check into #Canadian Housing Affordability Index.
Turns out it is a useless - and misleading - metric unless you live in one of the 10 metro regions covered. The Statscan NHPI is equally useless - it is the MSRP based on the build specification and land location, but builders never build the actual specification. Still a useful index for studying pricing, but **actual sale prices is what is required for an affordability index**.
Cannot answer question.
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Abdelrahman A.replied to Chris Alemany🇺🇦🇨🇦🇪🇸 last edited by
@chris
This just subsidizes demand and makes houses even more unaffordable. -
@abogical @chris agreed, it creates cost inflation.
A better model is if the balance of the value is held in trust by a non-profit. Someone can live their, have a share, even grow their equity; but when they sell, the non-profit is incented to keep costs down and sell again at the same low price.
BC has a history of subsidized housing ending up going to those without need or profiting from the subsidy.