November 16, 2012
DURHAM REGION - With the upcoming Federal by-election to be held on Monday, November 26, 2012 in the electoral district of Durham, local REALTORS® will be speaking to candidates about important issues affecting homeowners.
“We are asking the candidates if they would support indexing the Home Buyers’ Plan (HBP) for first-time home buyers to keep up with inflation. We are also asking if they would be would support an extension of the Home Buyers’ Plan after a significant life change like the death of a spouse, job relocation or a marital breakdown,” explains Christine Marquis, President of the Durham Region Association of REALTORS®.
Open the Door to Homeownership: Home Buyers’ Plan is a program that has helped over two million Canadians realize the dream of homeownership by allowing them to withdrawal money from their RRSP to help purchase or build a qualifying first home. The money withdrawn essentially serves as a repayable zero-interest self-loan. The maximum HBP withdrawal is currently set at $25,000. Unfortunately inflation steadily erodes the plan’s purchasing power. Budget 2009 recognized the need to adjust the HBP for inflation by raising the Plan’s limits by $5,000. The Durham Region Association of REALTORS® notes that indexation in increments is an established government practice and believes this practice should be applied to the HBP. Using Budget 2009 as a starting point, indexing the HBP would increase the maximum amount by $2,500 for the first time in 2015 at a cost of $7.5 million. Since home purchases have wide-reaching economic benefits, the HBP is a proven creator of jobs and economic growth.
Helping Homeowners through Life Changes: There is already precedent to use the HBP more than once. Individuals who need to seek new housing as a result of becoming disabled can use the HBP, as can those who have been out of the housing market for more than five years. Members of the Durham Region Association of REALTORS® know that individuals suffering from the death of a spouse, marital breakdown or employment relocation are all too often thrust into a situation that compromises their ability to purchase a new home that accommodates their needs. Extending the HBP to address these situations could not only help these buyers in transition, it could also benefit workers and industries across Canada with spin-off spending, job creation and labour mobility.
“Finally, we are asking the candidates if they would be willing to support a deferral of previously written-off depreciation (Capital Cost Allowance (CCA) recapture) when a re-investment is made to purchase another investment property under the proposal Stimulating Community Reinvestment,” described President Marquis.
Stimulating Community Reinvestment: The proposal alleviates the problem faced by investors who refuse to sell because doing so leaves insufficient funds after tax to acquire a property of similar value. The playing field would be leveled for smaller investors, as real estate developers are already allowed to defer tax. The sale of income properties generates spin-off activity that accelerates the economy and revitalizes communities. In addition, the cost is almost completely offset in the first year and is revenue positive in year two by the collection of other revenue, including Capital Gains Tax from property sales, and GST/HST and income tax from spin-off activity.
Electors will be able to vote on Election Day; or by special ballot. The constituency of Durham has been vacant since July 31, 2012 when Bev Oda resigned from politics.
Candidates announced for the by-election in Durham are:
- Erin O'Toole, Progressive Conservative
- Grant Humes, Liberal Party
- Larry O'Connor, New Democratic Party
- Andrew Moriarity, Christian Heritage Party
- Virginia Ervin, Green Party
- Michael Nicula, Online Party
Durham REALTORS®, We Work Where You Live. To contact a local Durham Association REALTOR® for more specific and local housing statistics or search for a weekend open house or listings in your neighbourhood, please visit www.DurhamRealEstate.org.
(905) 723-8184
(905) 723-7531
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