In today’s shifting real estate market, with interest rates fluctuating and housing affordability tightening in some regions, it’s easy to wonder if investing in real estate still holds the same promise. The answer is yes, but the strategies you use need to adapt to current conditions. As discussed in The Book on Rental Property Investing, there are four wealth generators in real estate—cash flow, appreciation, loan paydown, and tax benefits—that remain powerful, but let’s explore how these can work in today’s market.

1. Cash Flow – With interest rates recently dropping, financing has become a bit more affordable, but returns can still vary based on the market. Secondary markets and emerging regions often present more opportunities for higher cash flow. These areas have lower entry prices and growing demand, making them ideal for investors who can no longer achieve solid returns in pricier urban markets.

2. Appreciation – While primary markets may have slowed in appreciation, the opportunity in secondary and tertiary markets is heating up. As more people move to these areas for affordability, the demand for housing continues to rise, driving prices up. Additionally, improving properties in these regions can create instant equity through “forced appreciation.”

3. Loan Paydown – With interest rates slightly declining from recent highs, now may be an opportune time to buy. As rates stabilize, locking in a lower mortgage means more of your monthly payments go toward paying down the loan, which builds wealth faster. And remember, your tenant is paying this down for you!

4. Tax Benefits – Real estate remains one of the best tax-advantaged investments. With mortgage interest and depreciation deductions, you can offset your income, even in higher-rate environments. Plus, tools like the Principle Tax Exemption, you don’t need to pay taxes on capital gains so long as you qualify. 

While today’s market may present challenges in major cities, exploring secondary markets can unlock incredible opportunities for wealth creation. Real estate is still one of the most powerful tools to build long-term financial security, even in an evolving market landscape.

Buying a home is one of the biggest financial milestones for Canadians, but rising mortgage costs are making homeownership difficult—especially for Millennials and Gen Z. To tackle this challenge, the Canadian government has introduced a suite of major reforms designed to make mortgages more affordable and help more Canadians achieve their dream of owning a home.

Key Mortgage Changes Coming December 15, 2024:

1. Higher Price Cap for Insured Mortgages: The cap for insured mortgages will increase from $1 million to $1.5 million, reflecting the realities of today’s housing market. This means buyers purchasing homes up to $1.5 million will qualify for mortgage insurance, even with a down payment below 20%. This is the first change to the insured mortgage cap since 2012 and is expected to help more Canadians, particularly in competitive urban markets, enter homeownership.

2. 30-Year Mortgage Amortization for First-Time Homebuyers and New Construction: First-time homebuyers and anyone purchasing a new build will now have access to 30-year amortizations. This extension helps reduce monthly payments, making homeownership more affordable. The government is not only assisting buyers but also incentivizing new housing construction to address Canada’s ongoing housing shortage.

These measures build on changes made earlier this year on August 1, 2024, when the government introduced the 30-year amortization option for first-time buyers of newly built homes, including condos. Now, the eligibility is expanding to even more buyers, creating a broader pathway to homeownership.

Building on the Canadian Mortgage Charter
As part of its efforts to foster competition and lower costs, the government also strengthened the Canadian Mortgage Charter in Budget 2024. This reform allows insured mortgage holders to switch lenders at renewal without going through another mortgage stress test. By eliminating the need to requalify, more Canadians can access the best mortgage deals available, saving on interest payments and making homeownership even more attainable.

Looking Ahead: Protecting Homebuyers and Renters
These mortgage reforms are part of the most significant housing policy changes in decades. As the government works to build nearly 4 million new homes—the most ambitious plan in Canadian history—it is also introducing the Renters’ Bill of Rights and Home Buyers’ Bill of Rights. These initiatives will protect Canadians from unfair housing practices like blind bidding and renovictions while making leases and home-buying processes more transparent and accessible.

The government is partnering with provinces and territories to ensure these measures are implemented through the new Canada Housing Infrastructure Fund, which has allocated $5 billion to help make these rights a reality across the country.

What Does This Mean for Buyers?
These reforms are designed to give Canadians more flexibility and support in their journey toward homeownership. The increase in the insured mortgage cap and expanded access to 30-year amortizations will make it easier for buyers to secure financing, whether they're purchasing a first home or a new build.

Stay tuned for more updates as the government continues to roll out new regulations. If you're considering buying a home, this is an excellent time to evaluate your options and take advantage of these groundbreaking changes.

Are you ready to explore how these new mortgage rules can help you get into the housing market? Contact me today to get started on your journey to homeownership!

In today's world, more people are embracing a greener lifestyle, making choices that not only enhance personal well-being but also protect the environment. One significant shift in this eco-conscious movement is the transition to natural cleaning products. Traditional cleaning supplies often contain harmful chemicals that can affect our health and the environment. If you're thinking about making the switch to greener alternatives, this guide is for you.

Here are four essential factors to consider when transitioning to natural cleaning solutions, along with a bonus DIY list of ingredients at the end.

1. Harness the Power of Natural Cleaners

One common concern is whether natural cleaning products are as effective as commercial ones. The good news is, many natural products are strong enough for everyday cleaning and disinfecting tasks. For example, vinegar and baking soda can clean most surfaces, while essential oils like tea tree and lavender offer antibacterial properties.

2. Buy in Bulk for Sustainability

Switching to natural cleaning products is a great opportunity to reduce plastic waste. I buy cleaning supplies in bulk and use refillable glass spray bottles. It seriously minimizes the space required and amount of products needed. Many retailers offer bulk cleaning supplies in a variety of pleasant scents, so you can tailor your cleaning routine to your preferences.

3. Be Aware of Greenwashing

Unfortunately, not all "green" products are truly eco-friendly. Greenwashing is when companies mislead consumers by branding their products as environmentally safe when they're not. Always read labels carefully and avoid cleaners that contain ammonia, chlorine, phosphates, synthetic fragrances, and other harmful chemicals like parabens, phthalates, and triclosan. Opt for natural, biodegradable ingredients to ensure your choices are genuinely good for your home and the planet.

4. Try DIY Cleaning Solutions

If you’re up for a more hands-on approach, creating your own natural cleaning products can be both cost-effective and environmentally friendly. Common household ingredients such as vinegar, baking soda, and essential oils make excellent DIY cleaners. For instance, a combination of vinegar and water can be used to clean windows and glass, while baking soda works wonders as a gentle scrub. Just be sure to do some research on disinfectant potency to ensure your homemade cleaners are effective. It’s even handy to know that if you run out, these are easy quick solutions you can go to. 

DIY Ingredients for Natural Cleaning

• Lemon: A natural degreaser with a fresh scent.

• Vinegar: Ideal for all-purpose cleaning, especially windows and glass. Avoid using vinegar on stone surfaces like granite and marble. (I just found this out, I had been using it on my granite and quartz for years. I didn’t realize it causes dulling or etching over time so I’ll stop. I also dilute with water. 1 part vinegar to 10 parts water)

• Baking Soda: Creates a gentle exfoliating paste when mixed with water.

• Essential Oils: Add fragrance and, in some cases, antibacterial properties to your cleaning routine.

• Castile Soap: Can be diluted for use as an all-purpose cleaner or hand soap.

• Olive Oil: Perfect for polishing wood when mixed with lemon juice.

• Hydrogen Peroxide: Works as a disinfectant for kitchen and bathroom surfaces.

• Rubbing Alcohol: Effective for removing sticky residue or creating a disinfectant solution.

As with any cleaning product, always test on a small area to avoid damaging surfaces.

Switching to natural cleaning solutions is not only healthier for your family but also better for the planet. Start small, and as you run out of your old supplies, try one of these before you go out and replace it and see how you like it.

As we move through 2024, the British Columbia real estate market is showing promising signs of growth. According to the latest update from the BC Real Estate Association (BCREA), residential sales across the province are expected to see a 4.4% increase, totaling 76,300 units by the end of the year. This positive trend is anticipated to continue into 2025, with sales forecasted to climb even higher, reaching 86,475 units.

The shift in the Bank of Canada's monetary policy, from aggressive tightening since 2022 to a more easing stance, is a key factor driving this rebound. BCREA Chief Economist Brendon Ogmundson highlights the positive implications of this policy shift for the BC housing market, with home sales expected to gain momentum in the latter half of 2024 and into 2025.

Despite a sluggish start to the year, the steady influx of new listings has led to an increase in the total inventory of homes for sale, reaching its highest level since 2019. While market conditions have hovered around the lower end of what is traditionally considered a balanced market, the average home prices have remained relatively stable. Notably, Greater Vancouver has seen average prices return to their 2022 peak.

Looking ahead, the average home price in BC is expected to edge up by 2% this year, bringing the annual average to approximately $990,500. As the market tightens with increased sales activity in 2025, prices are projected to rise further, with a 2.9% increase pushing the average home price to about $1.02 million.

Whether you're a first-time homebuyer or a seasoned investor, staying informed about these market trends is crucial for making the most of your real estate investments in British Columbia. Get ahead of the curve and stay informed.  

To read the full article from BCREA click here.

If you're selling a tenant-occupied property, there are some critical changes to the Residential Tenancy Act (RTA) that you need to know. These updates affect how you handle eviction notices, especially when it comes to buyers planning to move into the property.

Key Changes to Know:

• Eviction Notice Periods: Initially, the BC Government proposed increasing the notice period from two months to four months. However, after concerns were raised by the BC Real Estate Association (BCREA), the regulations were adjusted. Now, landlords and homebuyers must give tenants three months' notice before ending a tenancy for personal use or caretaker purposes.

• Landlord Personal Use: If you’re planning to move into the rental property yourself or have a close family member move in, the notice period remains four months. This change came into effect on July 18, 2024.

• New Notice Requirements for Buyers: Starting August 21, 2024, the new three-month notice period for buyers comes into effect. The government has also reduced the dispute period from 30 days to 21 days for tenants who receive a notice from a landlord on behalf of a buyer.

• Provincial Web Portal: Landlords must now use a new provincial web portal to issue notices to end tenancy. This portal helps the government track how often evictions occur under personal-use provisions.

The BCREA and the Canadian Mortgage Brokers Association have expressed concerns about these changes, particularly regarding possession dates and mortgage qualifications.

Let’s Talk!

If you’re thinking about selling a tenant-occupied property, reach out today. I’ll guide you through these changes and ensure a smooth and successful sale.

As of April 1st, Canadians aged 18 or older who are purchasing their first home are eligible to enroll in a tax-free First Home Savings Account (FHSA). Introduced in the 2022 federal budget, the FHSA combines elements of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP), allowing users to make tax-deductible contributions and tax-free withdrawals from the account for the purposes of saving for a home. 

Am I eligible for the FHSA?

In order to open an FHSA, users must be at least 18 years old and a Canadian resident. Account holders must also be a first-time homebuyer — someone who has not owned a home and lived in it during the calendar year before the account is opened, or at any time during the prior four calendar years. 

An FHSA can be used for a maximum of 15 years, and stay open until December 31st in the year that the account holder turns 71 years old. Users cannot contribute to their spouse or common-law partner’s FHSA. 

How much can I contribute to my FHSA?

FHSA holders can contribute an annual maximum of $8,000 into their account, with a lifetime contribution limit of $40,000. Unused contribution room can be carried over to the next year up to a maximum of $8,000. Carry-forward amounts start accumulating after the user opens the FHSA for the first time. Only the account holder can claim an income tax deduction for contributions made in a particular taxation year.

It is possible to have more than one FHSA open at a time, but the total amount that an individual can contribute to all of their FHSAs cannot exceed their annual and lifetime contribution limits. Similar to a TFSA, a 1% tax is applied on over-contributions to an FHSA for each month that the excess amount exists in the account. 

What are the benefits of the FHSA?

An FHSA marries together the concepts of a TFSA and an RRSP in one account.

Contributions to an FHSA, like an RRSP, are tax-deductible. Additionally, any withdrawals made for the sake of purchasing a home are non-taxable, similar to a TFSA, including any investment growth. Users can take advantage of a series of qualified investments in their FHSA, including mutual funds and publicly-traded securities, plus government and corporate bonds. Users can also set up a self-directed FHSA to manage their own portfolio.

What happens when I want to take money out of my FHSA?

If a user wants to withdraw funds from their account, there are a few things to keep in mind.

The account holder must be a first-time homebuyer at the time a withdrawal is made. The qualifying home must be acquired (or construction must be completed) no more than 30 days prior to the withdrawal, and before October 1st of the following year, with the intention of occupying the property as their principal residence within one year after acquiring it. Be sure to read carefully the definitions of a first-time homebuyer and a qualifying home. 

If you wish to transfer money out of your FHSA to another account, you can do so to another FHSA, an RRSP or a Registered Retirement Income Fund (RRIF). Be sure to close your FHSA on or before December 31st of the year following your first qualifying withdrawal, when your participation period concludes.

To learn more about the First-Home Savings Account, visit Canada.ca. 

Homeownership

Buying your first home is an exciting milestone, but the biggest hurdle for many is coming up with a down payment. If you've been diligently contributing to your Registered Retirement Savings Plan (RRSP), you might be closer to your dream home than you think, thanks to Canada’s Home Buyers' Plan (HBP).

What is the Home Buyers' Plan (HBP)?

The Home Buyers' Plan is a government initiative that allows first-time homebuyers to withdraw up to $60,000 per person from their RRSPs to use as a down payment on their first home—completely tax-free. This amount was increased in 2024 from the previous $35,000 limit, giving couples the opportunity to access up to $120,000 combined for their home purchase.

Who Qualifies for the Home Buyers' Plan?

The HBP is designed primarily for first-time homebuyers, but even if you’ve owned a home in the past, you may still qualify under certain conditions. Here’s who can take advantage of the plan:

• First-time homebuyers: If neither you nor your spouse/common-law partner has owned a home in the last four years, you qualify.

• Recent divorcees or separations: If you've experienced a breakdown of your marriage or common-law partnership, you may still qualify, even if you owned a home in the past.

• Haven’t lived in an owned property recently: If you haven’t lived in a home you or your partner owned in the last four years, you might also be eligible.

Important Considerations Before Withdrawing from Your RRSP

Before you tap into your RRSP for a home purchase, there are a few critical points to keep in mind:

1. Repayment Terms: The funds you withdraw under the HBP must be repaid within 15 years. Each year, you’ll need to repay 1/15th of the amount you withdrew. If you don’t, the unpaid amount will be added to your income for that year and taxed accordingly.

2. Eligibility of the Property: The home you plan to buy must be your primary residence, located in Canada. It must also give you full ownership rather than just tenancy rights.

3. Accessibility of RRSP Funds: Not all RRSPs are created equal. Some group or locked-in RRSP plans may not allow you to withdraw funds under the HBP, so it's essential to check with your plan provider.

Planning for Future Homeownership

If homeownership isn’t in your immediate future, but you’re planning ahead, consider how you’re investing in your RRSP today. The flexibility of your RRSP investments can impact your ability to use the HBP later. For those just starting out with investing, it's crucial to think long-term and choose investments that align with your goal of homeownership.

Ready to Take the Next Step?

The Home Buyers' Plan is a powerful tool for first-time buyers looking to make their dream of homeownership a reality. With the increased withdrawal limit, now is a great time to explore whether this option is right for you.

Find more details on eligibility and participation requirements, please visit the Government of Canada’s official page to learn more about the Home Buyers’ Plan (HBP).

If you're ready to dive into the world of homeownership and want personalized guidance, don't hesitate to reach out. I’m here to help you navigate the process and make the most of your investment. Call me today, and let's get started on your journey to owning your first home!

Is your kitchen in need of a refresh? If you're looking to bring your space up to date with modern design trends without spending a fortune, you're in the right place. Updating your kitchen doesn’t require a massive renovation or a hefty budget. Even small changes, like upgrading cabinet hardware or adding a fresh coat of paint, can make your kitchen feel brand new.

In this guide, we'll explore five budget-friendly kitchen renovation ideas that can elevate your home's aesthetic and functionality.

1. Embrace the Trend of Open Shelving

Open shelving is a popular and cost-effective way to enhance your kitchen’s storage and style. Not only does it provide easy access to everyday items like dishes and spices, but it also creates an opportunity to display your personal style.

Whether you choose traditional painted shelves with crown molding or opt for rustic wooden mantels with metal brackets, open shelves can make your kitchen feel more spacious. You can also use them to showcase decorative items like plants, framed artwork, and pottery, adding a personalized touch to your cooking space.

2. Upgrade Your Kitchen Hardware

Your kitchen hardware, including cabinet handles, sink faucets, and drawer pulls, plays a significant role in defining the room's overall vibe. Upgrading your hardware is a simple yet powerful way to refresh your kitchen’s look.

When selecting new cabinet hardware, consider your daily use. Opt for handles or knobs that not only match your style—whether modern, classic, or industrial—but also offer functionality. For drawer pulls, a good rule of thumb is to choose a pull that is one-third the length of the drawer. Ensure your new kitchen faucet complements the hardware with a matching style and finish, bringing consistency to your space.

3. Revamp Your Kitchen Lighting

Lighting can transform the atmosphere of any room, and your kitchen is no exception. Revamping your kitchen lightingby swapping out old fixtures or adding new ones can dramatically alter the look and feel of your space.

A well-lit kitchen typically combines task lighting, ambient lighting, and accent lighting. Use bright task lights, like under-cabinet lighting, over work areas such as the sink and countertops. Ambient lighting, like chandeliers or wall sconces, provides overall illumination. For an extra decorative touch, consider accent lighting to highlight specific areas, such as backlit glass cabinets.

4. Refresh Your Window Treatments

Window treatments can often be overlooked in kitchen design, but they play a crucial role in tying your space together. Refreshing your window treatments can enhance both the functionality and aesthetics of your kitchen.

Whether you prefer curtains or blinds, choose treatments that allow you to control light and add a layer of privacy. Consider ease of use and maintenance, especially in a kitchen environment where fabrics may be exposed to cooking fumes. For a low-maintenance option, vinyl shutters or blinds can offer a sleek, clean look.

5. Enhance Your Kitchen with Accessories

While accessories may not directly increase your home’s market value, they do play a vital role in creating a space that's enjoyable and functional for your family. Enhancing your kitchen with new accessories can be as simple as updating hand towels, table linens, or floor runners.

Consider adding a burst of color or texture with kitchen-themed artwork, vibrant plants, or a small herb garden to bring fresh flavors to your dishes. Updating small appliances like your toaster, kettle, or coffee maker with a modern design can also add a stylish touch. For a personal and crafty project, reupholster your dining chairs to match your updated kitchen decor.

Conclusion

Updating your kitchen doesn’t have to involve a full-scale renovation or a hefty investment. With these affordable kitchen renovation ideas, you can create a modern, inviting space that reflects your style and meets your family’s needs. Whether you're preparing your home for sale or simply want to enjoy a refreshed environment, these tips will help you transform your kitchen into a space you'll love.

Ready to upgrade your home? Explore more home improvement tips and real estate advice on our blog, or contact us to discuss how we can help you maximize the value of your property.

High cost of living in senior care facilities a driving factor for those who want to remain in their homes longer

The home that Canadians expect to spend their golden years in is often purchased well before retirement. However, with those days so far in the future, it can be difficult to imagine which features would be essential at that time. Senior housing experts and found that while not all Canadian seniors are looking for the same features in a property they can stay in long term, most remain eager to stay in their own homes as they get older.

More and more, Canadians are choosing to right-size rather than down-size as they age. Some mature buyers are looking for a turn-key condominium, so they can spend less time on maintenance and more time traveling after retirement. Others may choose to move from a two-storey home to a bungalow to avoid stairs as they age, or into a multi-generational property that offers the option to live with family. Others will opt to renovate their existing properties to accommodate their changing needs.”

With these factors in mind, as we consider our real estate goals and long term planning, this concept is worth considering.  There’s incredible opportunity here with Bill 44 being passed in B.C. to allow for multiple suites on one lot in certain districts close to transit. With some thoughtful planning, we could cleverly lay out a multigenerational home structure that carries us through the stages of life that work as we mature and children grow.  

1. Accessibility and Mobility

• Single-level Living: Homes with minimal stairs or single-story layouts can accommodate aging family members.

• Wide Doorways and Hallways: These allow for easy movement of wheelchairs or walkers.

• Bathroom Accessibility: Features like walk-in showers, grab bars, and raised toilets are beneficial.

• Entrance: A no-step entry can make it easier for elderly individuals to enter and exit the home.

2. Space and Layout

• Separate Living Areas: Multiple living areas or in-law suites can provide privacy for different generations.

• Flexibility: Rooms that can be repurposed as needs change (e.g., a home office becoming a bedroom).

• Adaptable Design: Homes that can be easily modified as family needs change (e.g., converting spaces for caregiving).

3. Proximity to Services

• Healthcare Facilities: Close proximity to hospitals, clinics, and pharmacies.

• Grocery Stores and Shopping: Convenient access to essentials.

• Public Transportation: Availability of reliable and accessible public transport.

4. Community and Social Factors

• Neighborhood Safety: Ensure the area is safe for all family members.

• Community Amenities: Parks, recreational centers, and social clubs that cater to different age groups.

• Schools and Daycare: For families with children, the quality and proximity of schools and daycare centers are important.

5. Legal and Estate Planning

• Ownership Structure: Consideration of how the home will be titled (e.g., joint tenancy, tenants in common) and the implications for estate planning.

• Wills and Trusts: Ensuring that legal documents are in place to specify the future ownership and management of the property.

6. Emotional and Psychological Considerations

• Family Dynamics: Open communication among family members to ensure everyone’s needs and preferences are considered.

• Support Systems: Proximity to extended family, friends, and community support networks.

• Quality of Life: Ensuring the home and its location contribute to the overall well-being and happiness of all family members.

Conclusion

Purchasing a home for multiple generations involves balancing the needs and preferences of various family members, both now and in the future. Careful planning and consideration of these factors can help ensure that the home provides a comfortable, safe, and enjoyable living environment for everyone.

27% of Renters Plan to Buy Property Within Two Years

A recent Royal LePage survey reveals that 27% of Canadian renters plan to buy a home within the next two years. This jumps to 40% for those aged 18 to 34. However, 69% of renters have no immediate plans to purchase, mainly due to insufficient income.

Phil Soper, President and CEO of Royal LePage, highlights that high mortgage rates and housing shortages are significant obstacles for many renters aiming to become homeowners.

Renters Consider Homeownership Before Leasing

Nearly a third of renters considered buying a home before signing their lease, but 41% decided to rent due to insufficient down payments. Other reasons include waiting for lower interest rates (33%) and property prices (30%), saving for a down payment (22%), and not qualifying for a mortgage (20%).

High Rental Costs for Canadians

Rental costs are a major burden for many Canadians. 36% of renters spend up to 30% of their income on rent, 37% spend 31-50%, and 16% spend more than half. In Vancouver and Toronto, these figures are 27% and 19%, respectively.

The Canadian Mortgage and Housing Corporation reports an 8% increase in rent for two-bedroom units over the past year, with vacancy rates at just 1.5% for purpose-built rentals and 0.9% for condo apartments.

Soper emphasizes the need for innovative solutions from the housing industry and government to address housing affordability and supply issues.

Key Highlights from the Royal LePage 2024 Canadian Renters Report:

• 50% of renters planning to buy within two years expect to have a down payment of less than 20%.

• 53% will use long-term savings for their down payment.

• 44% believe they can afford a home in their current city, while 37% do not.

• In British Columbia, 25% of renters spend over half their income on rent, above the national average of 16%.

Ready to Make the Move to Homeownership?

If you're one of the many renters looking to buy a home, we can help you navigate the process. Contact us today to get started on your journey to homeownership. Let’s turn your homeownership dreams into reality!

On April 16th, the Canadian government announced several new initiatives to create more housing and make renting and homeownership easier.

Here are eight key policies from this year's budget:

1. Canadian Renters’ Bill of Rights

With more Canadians renting longer, the 2024 budget introduces measures to protect tenants and help them buy homes. This includes a nationwide standard lease and requiring landlords to share rental price histories. Tenants can also report rent payments to credit bureaus to improve their credit scores for future mortgage applications.

2. Funding for New Homes

The government is investing billions in new housing. The Canada Builds initiative will add $15 billion to the Apartment Construction Loan Program, aiming to build 131,000 new homes by 2031. The CMHC’s Housing Accelerator Fund gets $400 million for 12,000 new units. Infrastructure Canada receives $6 billion over ten years to support water and waste infrastructure for new communities, plus $100 million for skilled-trade programs to build housing.

3. 30-Year Mortgages for First-Time Buyers

Starting August 1st, first-time buyers of new homes can get 30-year mortgages, reducing monthly payments by spreading them out over a longer period.

4. Higher Withdrawal Limits for Home Buyers’ Plan

To help new buyers save for a down payment, the budget increases the Home Buyers’ Plan withdrawal limit from $35,000 to $60,000.

5. Support for Secondary Suites

The budget allocates $409.6 million over four years for low-interest loans up to $40,000 for homeowners to add secondary suites, providing extra living space or rental income.

6. Higher Tax on Big Capital Gains

Starting June 25th, the tax rate on capital gains over $250,000 increases from 50% to 66%, affecting sales of secondary residences and investment properties. Principal residences remain exempt.

7. New Designs for Post-War Housing

The budget allocates $11.6 million to modernize home designs, including row homes, fourplexes, sixplexes, accessory units, and modular homes.

8. Turning Public Land into Housing

To tackle land scarcity, the government aims to build 250,000 new homes by 2031 by using public land. They plan to lease public land to builders and convert federal office buildings into housing, with $5 million allocated over three years to support these initiatives.

Want to learn more about the 2024 federal budget? You can read the full announcement here.

From young adults returning home after completing their studies to elderly parents moving in with their adult children, an increasing number of Canadians are opting to live with family members or purchase property with friends as a joint venture.

While multi-generational living is not a new concept, it has become more prevalent in North America in recent years. Many Canadians are choosing this living arrangement to collectively raise young children, care for elderly family members, and share housing costs in an increasingly competitive market.

Advantages and Challenges

Living with family offers numerous financial and emotional benefits, but it can become chaotic if the home isn’t designed for multiple families. If you're considering cohabitation, here are some tips on transforming your home into a multi-generational living space.

Creating Separate Spaces

Privacy is crucial in a shared living arrangement. If space and budget allow, building a secondary unit on the property can provide an in-law suite or apartment for adult children. Alternatively, converting a basement into a separate apartment with its own kitchenette, bathroom, and living area can offer additional privacy within the same household.

If major renovations aren't feasible, consider adding privacy through interior soundproofing, room dividers, and separate entrances. Multiple entryways can streamline foot traffic and give occupants a greater sense of independence.

Before starting any major renovation or construction project, contact your municipality's building department to ensure you have the necessary permits and are aware of any additional requirements for separate entrances, addresses, utilities, etc.

Mindfully consider your layout

Multi-generational households may choose to include one or two bedrooms on the main level of the home in addition to the bedrooms upstairs. This is not only beneficial for elderly occupants who will find it easier to navigate one level, but can also provide some additional privacy by separating the bedrooms over two floors. If you live in a single-floor property, consider converting rooms on opposite sides of the home into bedrooms, if possible.

It’s also important to strike a balance between separation and togetherness. Open concept layouts in shared dining, living and kitchen areas offer a place for families to gather. Larger communal areas can not only accommodate more people, but also lend enough breathing room for wheelchairs, walkers and space for getting around furniture.

When living with many people, it’s important to maximize every square foot for multi-tasking too. Consider converting some of the underutilized spaces of your home – such as the attic, garage or den – into flexible spaces that can be adapted into areas for hobbies, a home office, a kids’ playroom, or extra storage.

Keep accessibility in mind

If your multi-generational household includes older family members, it’s crucial to think about their accessibility needs – today and in the future.

Layouts that include wider doorways and hallways, removing doors where possible and adding ramps or stairlifts, can be beneficial for those with mobility constraints. Consider the amount of space needed for mobility devices to comfortably turn circles in each room. Slip-resistant flooring like carpet, good lighting, grab handles and railings are also important to factor in when retrofitting your home for elderly occupants.

The Canada Mortgage and Housing Corporation (CMHC) offers online guides for designing accessible spaces in the home.

Take advantage of tax credits

If you’re renovating your home for the purposes of multi-generational living, then you may be entitled to a tax break.

As of 2023, the federal Multigenerational Home Renovation Tax Credit is available as a refundable credit towards the creation of a secondary unit that a ‘qualifying individual’ will live in, such as a parent, grandparent, sibling or spouse. The credit is applicable on the renovation of, or addition to, an eligible dwelling that a qualifying individual will reside in. Applicants can claim up to $50,000 in rebates during the taxation year in which the renovation period ends.