A market update from team member Denise Buck
Multigenerational Home Renovation Tax Credit
It is no secret we have a severe housing shortage. So what is a multigenerational home? It is essentially a home where several generations of a family live together. This is very common in other parts of the world and only starting to become popular here now in areas like Paris Ontario and Brantford Ontario. In fact several of the councillors in Brant County have been advocating for this for some time. It make sense in so many ways. Above and beyond simply making homes affordable being shared by more than just one family, they offer other benefits such as elderly people able to live independently with the assistance from family vs private care or nursing homes. The problem is most homes are not set up for this. Let’s be realistic, sure we want to help our parents but do we want to share a kitchen with them? Being able to renovate your home to allow for two independent residences is key to making this work and surviving together in the future.
So all this is great in theory but not everyone has the cash sitting around to drop in a second kitchen etc. To help with this in 2022 Federal government will introduce a tax credit that is applicable to these costs. The proposed tax credit would allow for a 15% credit on up to $50,000 of eligible renovation expenses. Every little bit helps!
Keep in mind you will need to have your dwelling and project approved prior so make sure you are eligible prior to knocking down walls! The tax credit is meant for closely related people such as parents, children and siblings.
Did the market just flip? May 20, 2022
I am not revealing any deep secrets when I say the housing market in Paris, Brantford and Brant County has been a roller coaster ride over the past two years. The same has been the case with many things, the pandemic shook just about everything to its core. The difference with this ride is that it has been stuck on the long upward climb, the one where you are holding your breath to the point of nearly passing out before the big gravity defying fall.
So here we are, april 16 here we are with the most inventory in months , properties with conditional offers , many indicators of a more normal/balanced market… Here we sit, waiting , watching wondering what the next few months will bring.
First let’s look at where we are today. The difference between the mid-winter market and today is night and day. This change is generally associated with the Bank of Canada raising interest rates. In January and February of this year almost every single house that went on the market was getting multiple offers much higher than the asking price. Last week, the Toronto Regional Real Estate Board reported that sales in April dropped by about 41 percent from April of 2021. Sales are also down 27 percent from just one month prior. That is a stiff drop!
Now, that does not mean that the market is bottoming out. It is mostly related to people sitting on the sidelines waiting to see what will happen. “Should we buy now or wait until next month when the prices might be lower”.
If you are trying to buy a home in Paris, Brantford or Brant County then this is good news for you. We are seeing fewer multiple offers in the market, in some cases houses selling on a single offer.
So how should you proceed on an offer? One of the best clues is to see if the home is holding offers on a given date or if they are accepting offers anytime. If they are accepting offers anytime you can expect the home to sell for somewhere around the asking price. Who knows, you might even get it for a little under.
If you are thinking of buying, now is a fantastic time to do so. Sure, prices might go down a little next month but who knows, maybe we will be under another lockdown and starting all over again! The best advice I can give is to do what is right today, who knows what tomorrow will bring.