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Strategies help to land that home

By: Jenny Ford

Posted: 10/12/2012 1:00 AM | Comments: 0

Ayli and Philip Klein have reached a point where, logically, they should buy a house. They've been married more than a year, want to start a family, and both have good jobs -- Ayli's a lawyer and Philip works for the provincial government.

Instead, they've sold their car and are living in a downtown apartment close to work so they can scrape together enough cash to buy the family home they want.

"I really thought we could have found something," Ayli Klein, 27, said. "I just want to be happy with what I'm getting."

The search has been challenging for the Kleins, but they're part of a growing group trying to find ways around the increasing housing prices in Winnipeg.

"At the end of the day, it's almost survival. People of varying income are just trying to find a decent, affordable neighbourhood for themselves and for their family," said Jino Distasio, director of the Institute of Urban Studies at the University of Winnipeg.

The Kleins' situation, in this regard, isn't unique. Realtors have seen people find interesting ways around the housing crunch for years, including selling their car and moving to the city centre like the Kleins, buying duplexes to get that extra income from a tenant, moving out of the city or having family members give them a home.

"They're using any type of strategy to bridge the inability to afford, including going to the parents," said Distasio.

More and more people are moving outside Winnipeg and commuting in, he said. While 10 years ago, living outside the city was more of a lifestyle choice, now it's about being able to afford that family home.

Ayli Klein said they feel stuck in their (so far) year-long search. There are few homes in their price range and in the neighbourhood they want, River Heights. They've been pre-approved for a $260,000 mortgage, $10,000 more than what the average first-time homebuyer can afford.

"We are picky and we want to be because this is our home," she said. "You're just not getting the value in the houses."

While moving outside some of the more desirable neighbourhoods is a solution, there also needs to be more government involvement for neighbourhood upgrades so there's more value for money, said Peter Squire, market analyst for WinnipegRealtors.

Programs such as the Housing Opportunity Partnership are revitalizing homes in lower-income neighbourhoods, but more attention needs to be paid to these types of programs, said Squire.

The provincial government said property-tax credits and rebates for first-time homeowners are easing the financial strain along with supporting new neighbourhood construction and government housing. Property taxes have remained low in Manitoba compared to other provinces, they added.

However, the other issue, Squire said, is the land-transfer tax, a one-time tax around $2,700 for buying a home that's an added burden on homebuyers who are already stretched financially thin. Provinces such as B.C. have exempted first-time homebuyers from the tax, while in Manitoba only properties under $30,000 are exempt. Following B.C.'s example could help a lot of new homeowners, Squire said.

However, the land-transfer tax is evened out by property-tax breaks, a spokeswoman for Housing and Community Development said.

jennifer.ford@freepress.mb.ca

Republished from the Winnipeg Free Press print edition October 12, 2012 B3

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