March - Edmonton Real Estate Update
Real estate market prime for first-time buyers; Many incentives for new homeowners
They're back--but if they're not, they should be. A few years ago, before diminishing affordability sent them scurrying to the sidelines to continue to share accommodation or hang out at their parents' homes, first-time buyers were a force to be reckoned with. First time buyers are back in the game, if they want to be. Sellers are having to bring their asking prices back to more realistic levels to attract an anxious, but cautious, pool of buyers who know they now have more say over what happens in the marketplace. Mortgage rates and housing prices are trending down--at least for the time being. That should be good news for those looking at home ownership for the first time. Another factor to consider is that "because this is not the market to be flipping homes, people should be buying with the intention of living in them for a few years," he says. "Buy them because they can be homes, not a short-term investment."
**Source: The Calgary Herald – Saturday, February 28, 2009
Suite Deal for Investors
Mature neighborhoods in Edmonton will being seeing new growth and development. In efforts to expand the number of affordable housing suites, while utilizing existing infrastructure in the city of Edmonton, a bylaw has been passed to allow secondary suites, garage suites and garden suites. This project is put forward as an incentive to homeowners and prospective homebuyers who wish to subsidize their mortgage with a tenant, or make room for family members to reside with them. Rules and restrictions apply—to protect the prospective tenants and to regulate building locations for the suites.
Property Virigin? Get Paid to Purchase.
First-time buyers who purchase a qualifying home may be entitled to claim a new non-refundable tax credit of $5,000 and worth up to $750 ($5,000 × 15%). The rules; neither the buyer nor his or her spouse or common-law partner can have owned and lived in another home in the calendar year of buying this home or in any of the four preceding calendar years.
As of January 2009 first-time home buyers can withdraw tax-free from a Registered Retirement Savings Plan (RRSP) to purchase or build a new home to $25,000 (up from $20,000).