Support Tax Incentive for More Rental Units
Saskatchewan’s real estate industry wants the next provincial government to offer a special short-term tax incentive to increase the number of apartments and other rental units.
REALTORS® say people looking for a place to rent are finding very few choices because supply is limited in today’s market. Saskatchewan has the country’s highest rate of growth but the second lowest supply of rental units on a per-person basis.
Speaking for the real estate industry, Bill Madder said a tax incentive for people to invest in a rental property development fund could draw new funds to badly-needed rental units. He said the fund would be similar to Labour-sponsored Venture Capital Funds.
“The tax credit concept is well-known and much more efficient than direct government funding. For each dollar of incentive, many times more dollars would flow to provide rental units.”
Mr. Madder said a tax incentive is better than rent controls.
“Rent controls hurt the people they are supposed to help. They scare away investment. We need more supply and more choices, not more bureaucracy.”
Mr. Madder added that research conducted for the Association of Saskatchewan REALTORS® shows people believe it is hard to find new rental housing and support government efforts to create more.
The chart below shows how the shortage of new investment in apartments affects Saskatchewan renters. Over six in ten believe it would be challenging to find an acceptable replacement for their current accommodation.
Source: Praxis
Analytics September 2011
This chart shows strong support for the government to encourage more rental units to come onto the market. Two thirds of Saskatchewan people believe it is important for the next government to take steps in this direction.
Source: Praxis
Analytics September 2011
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