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The Need For Government Intervention In B.C. Housing Market
Top banks in Canada are seeking government intervention in addressing the current state of its housing market.
Officials of the Royal Bank expressed continued confidence in their mortgage loan portfolio but would like the government to enter the picture as early as now to help cool the housing market.
Bank officials reminded that prices of houses have soared, triggered by unhealthy supply and demand in housing, over speculation, and low interest rates offered by banks.
On the average, a single detached home in Vancouver area sells for about $1.5 million nowadays. This represents an 11 percent increase. Meanwhile across the pond on Vancouver Island you can find a similar home priced comfortably at about $400,000 says realtor.
The problem of soaring prices among residential properties in Vancouver (and Toronto as well) is a complex one. It thus requires the combined efforts of government sector (federal, provincial, and local) to work it out, bank officials stressed.
Prices have drastically increased over the last 12 months and Canada’s lawmakers should be focusing on these red flags. Prices have jumped in double digits and this isn’t going to be feasible.
Soaring prices have been challenging the housing landscape for some time now and sooner or later this would come to a landing. The problem is how it’s going to correct. Everyone wants to see a smooth landing and for this to happen, government sector must act collectively now.
Some sectors have expressed their two-cents worth on how to taper the surging prices – from imposing levies to curb unhealthy speculation to charging taxes on foreigners investing in the housing market.
Last year, B.C. had implemented tax charges on foreigners buying real estate properties in Vancouver. Property prices have reportedly gone down after a few months.
Banks are willing to support relevant government action plans that would help correct the drastic price increases.
Why Investing Now Is Your Best Move
Time isn’t always in your favor so start investing now. A lot of young adults hesitate to invest because they feel that it takes a ton of money to start and grow an investment. This fear is unfounded and shouldn’t stop you from doing it now.
Saving vs Investing
But before taking the leap, be aware that investing is totally different from saving. Saving won’t bring you wealth, but anytime you need funding, savings are a ready source of cash. Savings account, checking account, and time deposit are examples of this category. Meanwhile, investing is riskier but the higher the risk the greater the return. Mutual funds, stocks, and bonds are some investment vehicles you can avail of.
The beauty of investing now
Why start now? The earlier you do it, the sooner you’ll realize the power of compounding. Say you are 30 years of age right now and at 8% yield you were convinced to start investing $10.00 weekly without fail. By the time you reach 65, your money would have ballooned to about $99,000. Now that’s a sound investment. But what if you had started a decade earlier. At 20 years of age, you have invested the same amount weekly at the same expected yield. By age 65, your money would have been close to $229,000!
Seeking the help of an expert
If you have decided to invest now, it is wise to seek the expertise of a financial adviser. While not really necessary, a financial coach can help you map out a plan towards your financial objectives, research for good investments, and help you earn profits from them.
When you’ve found a potential financial adviser, do not hesitate to raise questions. Start with asking about his work and experience in the field. Ask how he charges fees. Currently, advisers would either charge based on the aggregate assets he is managing for you or simply ask for a commission.
Investing while still young gives you an edge over the others who opt to start later in life. You gain financial freedom earlier than the others. You can even retire early because you’ve started investing at a time when others are still taking th
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