In July 2022 CMHC released a report that found government charges represent more than 20% of the cost of building a new home. Urban Development Institute study 'Taxing Growth' found that over 29% of the purchase price of a typical 2-bedroom home in Vancouver is made up of government fees and charges, with the City of Vancouver, Metro Vancouver, the Province and Federal governments collecting more than $330,000 from that one home.
Imagine paying that much less for a property, would that make homes more affordable? Governments at all levels treat real estate like cash cow and then turn around and release these news. It seems like Wild West now with NDP coming up with housing announcements on daily bases how to increase affordability under the title ' Homes For people". Latest idea is to spent $500M ( tax payers money most likely without consultation) to buy older buildings ( wonder if they over pay for these buildings) rather then allowing these buildings to be sold to developers. All these sound good on the PR front and news releases and NDP score a lot of brownie points aka votes but, none of these make business sense ( sorry, I forgot NDP is good at spending and leaving the province in debt like in the 70's ). I never want to get into politics but, this is really wild west.
Would you be a home owner today if could pay $330K for $660 K property ? more owners, less renters win-win.
