If you read last month’s article, you would know that the provincial government is seeking to impose a cooling-off period. Recent news has announced that the government is going to go ahead with its plans for a “homebuyer protection period”. Moreover, on a national scale, new measures are also being put in place. All of which is being done to combat the exuberant prices prevalent in the Canadian real estate market. These new rules and regulations will directly impact those who own housing in Penticton. Or, those who are interested in purchasing housing in Penticton. Follow along below to see how provincial and national cooling-off measures will affect real estate in 2022.
British Columbia is Set to Implement Their Proposed Cooling-Off Period.
It has been announced that the British Columbia government is going to move ahead with its plans for a cooling-off period. This way, buyers will be given a window of time to make an informed decision. Currently, buyers do not have the time to secure a property, have a home inspection, and consider their financial state. Supposedly, the cooling-off period is going to allow buyers to have more time to figure out these details.
One of the biggest reasons for the cooling-off period is to prevent buyers from skipping home inspections. This has been one of the biggest trends as the market has progressively heated over the last few months. Buyers are taking it upon themselves to waive conditions, just so they can be considered by the seller.
Forgoing a home inspection is one of the biggest downfalls in a real estate transaction. It is incredibly important to do your due diligence, especially when you’re bidding over the asking price. Otherwise, it is likely that you will end up having to deal with substantial repairs and unknown problems. For many Canadians, this is a risk they cannot afford to take.
Officials are hopeful that new regulations will integrate by summer. Until then, the B.C Financial Services Authority must consult with representatives involved in the real estate industry. For instance, real estate agents, home inspectors, appraisers, and financial and legal spokespersons.
Anyone with plans to buy housing in Penticton may consider waiting until this new legislation is brought in. If you are willing to take the risk, be wary of waiving conditions like home inspections. The last thing you want is to go over budget on a home that needs extensive work done.
How Will Housing in Penticton be Impacted by National Cooling-Off Measures?
The provincial government isn’t the only one that has plans to ward off high real estate prices. At a national level, there will also be new measures implemented to ensure the market cools off. From new key interest rates to vacancy tax increases, everything is hitting all at once. Thus, leaving many Canadians unsure of what to expect.
In early March of this year, the Bank of Canada hiked the benchmark interest rate to 0.5% from 0.25%. This was done in response to the alarming rate at which inflation was growing. The Bank of Canada noted that this would be the first of several small interest rate hikes over the year. Consequently, Canadians with variable rate and 5-year fixed-rate mortgages have seen a surge in cost.
In addition to the rise in interest rates, there have also been rumours of an increase in foreign buyer tax. As well as, rises in speculation and vacancy taxes. Anyone looking to buy a home from outside of Canada should be prepared to pay a large sum in taxes. Furthermore, persons with a second property should be aware of the speculation and vacancy tax in British Columbia. The time in which your houses sit empty will directly impact your taxes. More information on foreign buyer tax can be found here. And, information on speculation and vacancy tax can be found here.
Learn More About Housing in Penticton Today!
For those who want to gain a better understanding of how they will be impacted by housing in Penticton, contact us today. Buying housing in Penticton can be confusing without the help of a trusted real estate agent in today’s current market condition. Feel free to reach out with any questions as you work towards achieving your real estate goals. The Okanagan is a great place to escape the hustle and bustle of city life and enjoy the outdoors! I look forward to working with you in the near future.