Richard Lyall is president of RESCON, the Residential Construction Council of Ontario. He has represented Ontario's building industry since 1991. To contact him, reach out to [email protected].
Richard Lyall , president of the Residential Construction Council of Ontario , breaks down the cost of doing business when it comes to building new homes in the province, and the math is hard to swallow.Taxes, for instance, are an inevitable and unavoidable part of building and buying a new home. So are the seeminglyAdditionally, there are financing and interest costs, not to mention costs for materials and labour.
The add-ons contribute a jaw-dropping 31% to the cost of a new home – equivalent to a downpayment, according to a report prepared by the Canadian Centre for Economic Analysis. Development charges, for instance, are charged when shovels for a project go in the ground. Builders and developers must fork out the cash in advance and carry the costs until the project is completed and the cost is recouped from the buyer. Builders and developers must finance the carrying costs. The result is a higher price tag for the home, which is paid by the consumer.
Today, in a 500-unit building, if the charges were equally split between one- and two-bedroom units, the cost would be $28.3 million – up from $3.3 million in 2009. The fees must be reduced so the savings can be passed on to homebuyers. For starters, the federal and provincial governments need to introduce taxation measures, including a full rebate of HST to first-time homebuyers, and bring the fees down to a more manageable level.
Some 54% of young Canadians aged 18 to 38 believe that owning a home is still an achievable goal, according to a Royal LePage survey, and 84% believe it’s a worthwhile investment.
Construction & Development Construction Costs Richard Lyall Rescon Fees Levies Development Charges Construction
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ontario reduces child-care fees, introduces new operator funding formulaThe updates to how operators are compensated for lower parent fees, however, do not come with any new wage increases or a wage grid for early childhood educators
Read more »
Ontario reduces child-care fees, introduces new operator funding formulaTORONTO — Ontario child-care operators in the national $10-a-day program will soon be compensated in a way the province says will cover the true cost of providing care, after many said they were struggling to keep their doors open under the current s
Read more »
Ontario reducing child-care fees in JanuaryOntario child-care operators in the national $10-a-day program will soon be compensated in a way the province says will cover the true cost of providing care, after many said they were struggling to keep their doors open under the current structure.
Read more »
Certain child care fees at some Ontario daycares being lowered starting in 2025The province is taking the next step to lower child care fees for families as part of the Canada-wide Early learning and Child Care system. Starting in Janua
Read more »
Ontario reduces child-care fees, creates new funding formulaAdvocates say that early childhood educators in Ontario are among the lowest paid in the country, and say that raising their wages is critical to the success of the $10-a-day child-care program. Children's backpacks and shoes are seen at a daycare franchise, in Langley, B.C., on May 29, 2018.
Read more »
Ontario will cap child-care fees at $22 a day in JanuaryOntario child-care operators in the national $10-a-day program will soon be compensated in a way the province says will cover the true cost of providing care, after many said they were struggling to keep their doors open under the current structure.
Read more »