by Josh Clark 
Hey there, savvy investors and homebuyers! If you’re on the hunt for lucrative opportunities in the ever-evolving real estate landscape of Calgary and Edmonton, then you’re in for a treat. The 2024 Canadian Federal Budget has unveiled some key insights that could shape your next move in the property market.
As a seasoned real estate agent for New Homes Alberta, I’m thrilled to decode the budget’s implications, especially for those eyeing new and pre-construction residential properties. Whether you’re a seasoned investor or dipping your toes into the realm of homeownership, this update is tailored just for you.
The Housing Horizon: What the Budget Reveals
- 30-year amortizations for some first-time buyers:Starting August 1, the maximum amortization will be raised from 25 to 30 years for first-time buyers purchasing a new-build property with a down payment of less than 20% (an insured mortgage). The government also proposed changes to the Canadian Mortgage Charter that would allow permanent amortization relief for qualifying existing homeowners.
- Increase to the Home Buyers’ Plan limit: Starting today, first-time buyers will be able to withdraw up to $60,000 (previously $35,000) from their Registered Retirement Savings Plan (RRSP) tax-free for the purchase of their first home. This includes an extension of the grace period to start repaying the loan by an additional three years.
- A plan to build 3.87 million new homes by 2031, including 2 million net new homes in addition to the 1.87 million homes that the Canada Mortgage and Housing Corporation forecasts will be built by that year.
- Housing Accelerator Fund increase: A $400-million top-up to this $4-billion fund.
Navigating the Terrain: Actionable Steps for Success
Stay Informed: Keep your finger on the pulse of market trends and policy changes. Follow reliable sources, engage with industry experts, and get in touch with us.
Diversify Your Portfolio: While residential real estate presents promising opportunities, remember the importance of diversification. Consider allocating a portion of your investment portfolio to other asset classes like stocks, bonds, or REITs to mitigate risk and optimize returns.
Partner with Experts: As you embark on your investment journey, enlist the guidance of seasoned professionals. From real estate agents to financial advisors, surround yourself with a knowledgeable support network to navigate the complexities of property acquisition and wealth management effectively.
Think Long-Term: Adopt a strategic mindset and focus on the long-term benefits of your investment decisions. Whether you’re eyeing rental income or capital appreciation, prioritize assets with solid fundamentals and growth potential, aligning with your financial goals and risk tolerance.
How Does The Canadian Federal Budget Impact Preconstruction and New Build Homes in Alberta?
The 2024 Canadian Federal Budget brings with it significant benefits for those looking into new construction and prebuild homes, particularly in regions like Calgary and Edmonton.
With the introduction of longer amortization periods for first-time buyers, purchasing new-build properties has become more attainable, as the extended amortization helps reduce monthly payments, thereby making homeownership more accessible to a larger group of Canadians.
Moreover, the substantial increase in the Home Buyers’ Plan limit allows more substantial upfront investments, which can be particularly advantageous for those considering prebuild options.
The government’s commitment to a robust construction agenda—aiming to build 3.87 million new homes by 2031—also suggests a forthcoming increase in the availability of new properties. This surge in supply could stabilize prices and increase options for buyers, making now a prime time to consider investing in new constructions and prebuilds as part of a diversified real estate portfolio.
For our top recommended preconstruction buys, check this link here: Investment Opportunities
Final Thoughts
In the dynamic realm of real estate investing, seizing the right opportunities at the right time is key to unlocking success. With the insights gleaned from the 2024 Canadian Federal Budget, you’re poised to make informed decisions that drive your financial prosperity forward.
As your trusted ally in the world of real estate, we’re here to empower you every step of the way. Whether you’re seeking your dream home or aiming to build a robust real estate portfolio, let’s embark on this journey together, turning your aspirations into reality.
Happy investing!
