Each year the Political Action Committee (PAC) of the Newfoundland and Labrador Association of REALTORS® (NLAR) joins their counterparts from across Canada (members of the Canadian Real Estate Association) to meet with and lobby our MPs on matters related to the consumers ability to buy a home with assistance from the Home Buyer’s Program and deferral of Capital Cost Recovery when disposing of an investment property. Most reciently, the three issues that were taken to all MPs and the same three issues taken by the Newfoundland and Labrador REALTORS® to all our Newfoundland and Labrador MP’s were:
1) Open the Door to Homeownership
The Home Buyers’ Plan (HBP) allows Canadians to borrow up to $25,000 from their RRSP’s to buy their first home. Indexation would stop the steady erosion of the HBP’s purchasing power ensuring homebuyers receive the same value in the future.
2) Help Homeowners through Life Changes
Allowing the use of the Home Buyers’ Plan (HBP) after job relocation, the death of a spouse or marital breakdown would help Canadians maintain homeownership. Significant life changes can trigger a move, and impact an individual’s ability to purchase another home that accommodates their circumstance.
3) Stimulate Community Reinvestment
Allowing owners to defer previously written off depreciation (Capital Cost Allowance) on an investment property sale when they sell and reinvest would remove a major obstacle to reinvestment. Many owners are reluctant to sell because doing so leaves them with insufficient funds to buy another property of similar value due to tax rules. As a result, many hold on to properties instead of reinvesting. Tax deferral would level the playing field for small investors, and unleash a chain reaction of economic and community benefits.