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The Canadian Home Builders ’
Association is a non-profit organization
dedicated to education, professionalism, consumer TAXES and DCC's ERODE HOUSING AFFORDABILITY Housing affordability is probably the biggest issue presently facing Greater Victoria. This issue affects everyone, but especially:
The cost of housing is impacted by many variables, including interest rates, availability of skilled trades, and cost of materials. In a competitive market, these costs ebb and flow depending on different suppliers and the economy. However, there are additional housing costs such as taxes and Development Cost Charges (DCC's) by government, where there is no opportunity for builders and consumers to seek alternate suppliers. Government can raise housing costs with impunity, unless the public asks for accountability. Federal, provincial and local governments receive significant revenue from housing. For example, BC’s Property Transfer Tax delivers almost a billion dollars in annual revenue to the provincial government. Federally, the government receives similar revenue from the GST, and this increases annually as inflation erodes the GST rebate. Locally, municipal governments charge a variety of fees and taxes, including Development Cost Charges (DCC’s), which is really a tax on new home buyers. Municipal officials often say that developers pay for these charges, but that is a myth. The consumer pays for the charges on any product, including housing, until the consumer can no longer afford to pay. That is the danger we face, when various levels of government raise taxes and DCC’s on housing. As these costs increase, housing will surpass the consumer’s ability to pay. The people most exposed to this danger are those least able to pay - young people, seniors, and the working poor. When housing costs outstrip the public’s ability to pay, builders are unable to build, resulting in rising unemployment and potentially a collapse in the housing market. This is often referred to in the media as “a housing bubble.” So the next time you hear government officials talking about passing increased taxes and DCC’s onto developers, remember who will really end up paying, and what’s at stake – housing affordability. Your only recourse is to contact your elected representative and ask for accountability, as the Canadian Home Builders’ Association has been doing for the past 65 years. In a future column, I'll describe an initiative that increased housing and revitalized a community, while reducing and eliminating taxes and DCC's. For information on hiring a professional contractor or renovator, visit www.chbavictoria.com. See award-winning homes at www.careawards.com . Look for "Ask a Home Building Professional" every Wednesday in the Times Colonist. |
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CHBA Victoria #1-3690 Carey Road, Victoria, BC,
V8Z 4C2 |
