Canada is a dream destination for many residents, and becoming a homeowner there is a life goal for many of them. No wonder, the hot real estate market in Canada attracts many investors. Nevertheless, it’s not as easy as one might presume to make a real estate investment in Canada. There are many challenges that one can face when trying to buy a house in Canada. Let’s enlist some of them below and analyze how those challenges can be overcome.
Lack Of Housing Supply
Though today you can find great houses for sale in Canada, it is considered to have the lowest house supply per thousand residents among G7 countries. What does this tell us? Population growth may sooner or later outpass the supply of houses in Canada. As a matter of fact, this tightened supply starts to show up in the Vancouver real estate market. This issue should be tackled at a governmental level to provide more opportunities for Canadians and a good infrastructure. Indeed, good infrastructure is a key to building sufficient houses and bettering Canadians quality of life.
Housing Affordability Challenge
As you know, supply and demand correlation is the primary driver of all markets, and Canadian real estate is no exception. Due to lack of housing supply, and high demand for houses, the prices of houses in Canada jump up, making it unaffordable for many residents. The federal government should tackle this issue by providing first-time homebuyers incentives and more opportunities to borrow funds. Young Canadians should get enough options for buying their first house. Two initial endeavours to take are increasing the RRSP withdrawal limit and the amortization period for insured mortgages.
Housing As A National Challenge
Young and new Canadians are mainly the ones who face the challenge of homeownership. This national problem should be solved by all levels of government to encourage youngsters and show that the country has got their back. The federal government should invite municipal and provincial governments, as well as real estate professionals, constructors and civil society organizations. Similar roundtables will prioritize the supply of all forms of housing, such as rental and owned, encouraging research and innovation for sustainable constructions.
Canadians face many challenges when buying a house in Canada, including supply deficiency and affordability. The concerns of giving up their dream to own a house in Canada should be addressed by all levels of government. The government should make sure that all residents get the chance to buy their houses, and Canada remains a dream destination for everyone with its equitable and fair real estate market.