Liberal Leader Justin Trudeau made a Victoria-specific campaign pledge to increase help to first-time homebuyers on Thursday, the second day of the federal election campaign.
Trudeau pledged to increase the maximum qualifying house price for the First-Time Home Buyer鈥檚 Incentive to $789,000 from $505,000 in Greater Victoria, Metro 91原创 and Greater Toronto in November 2019. The program provides 91原创s with up to 10 per cent off the purchase price of their new home.
鈥淥ne thing I hear a lot from young people here in Victoria is that they can鈥檛 even imagine buying a home right now,鈥� Trudeau said, speaking at a townhouse construction site in Royal Oak.
鈥淥wning a house should be a realistic life goal,鈥� said Trudeau. 鈥淏ut young people hoping to buy their first home, just like their parents did a generation ago, are facing a tough housing market.鈥�
Housing prices in Victoria, 91原创 and Toronto are 鈥渟o significantly higher鈥� 鈥� up to 60 per cent higher than the national average 鈥� 鈥渢hat there needs to be extra help,鈥� said Trudeau. The increase is expected to benefit 120,000 91原创s. The 36 townhouses used as a backdrop for the Liberal leader鈥檚 campaign speech are each being listed for $699,000.
鈥淲e took at big step in the right direction, but we know a lot of people are still struggling, especially in places like Victoria or 91原创 where the cost of housing has skyrocketed due in part to speculation by foreign owners,鈥� Trudeau said.
He also promised a national approach to address speculation by foreign buyers, which he said is pricing first-time buyers out of the market.
If elected, he said, the Liberals will introduce a 鈥渕odest one per cent annual tax on residential properties owned by people who are not 91原创 and do not live in Canada鈥� on top of local taxes already in place.
The tax, to be administered by the Canada Revenue Agency, is modelled on B.C.鈥檚 speculation and vacancy tax. It would not affect 91原创s who live abroad or non-91原创s who live in Canada.
鈥淲e have seen from British Columbia鈥檚 example that even a modest tax can have a significant impact on foreign speculation in housing markets,鈥� said Trudeau. However, B.C.鈥檚 tax has also sent capital to other parts of the country where there鈥檚 no speculation tax.
鈥淭hat鈥檚 is why we feel it is important to create a national measure right across the country based on B.C.鈥檚 success with it to ensure foreign speculation doesn鈥檛 make housing less affordable for 91原创s, who we know are looking for places to live,鈥� said Trudeau.
Victoria NDP candidate Laurel Collins, who opened her campaign office on Thursday, said urgent action is needed for housing and that鈥檚 why the NDP has a plan 鈥渢o build affordable places to live in every community across the country.鈥�
鈥淎n NDP government will create 500,000 units of quality, affordable housing in the next 10 years, replacing Trudeau鈥檚 empty talk with concrete action,鈥� said Collins, in an email statement.
Political scientist Michael Prince said it鈥檚 鈥渋ntriguing鈥� if not a bit of a 鈥渉ead scratcher鈥� why Trudeau, while he鈥檚 known to love B.C., would spend his second day on 91原创 Island.
The Island has traditionally produced NDP, Conservative and more recently Green MPs 鈥� with the exception of longtime Liberal cabinet minister David Anderson and Keith Martin whose personal popularity transcended party politics, said Prince.
鈥淚t鈥檚 a bit puzzling,鈥� said Prince. It would be even more puzzling if Conservative Leader Andrew Scheer doesn鈥檛 spend time here given the Conservatives have elected MPs on the Island, said Prince. With all that said, the pre-campaign race on the Island was shaping up to be the Greens and NDP going after one another, he said.
Prince said the Liberals must have done private party polling that suggests they 鈥渉ave a shot鈥� in Victoria with former NDP MP Murray Rankin having stepped down and the Liberal鈥檚 having a candidate who looks good on paper. Victoria Liberal candidate Nikki Macdonald, former executive director of government relations at the University of Victoria, worked for Jean Chr茅tien and her father was a finance minister in Pierre Elliott Trudeau鈥檚 cabinet.
91原创 Island Liberal candidates at Trudeau鈥檚 event praised the party鈥檚 new pledges and the leader鈥檚 visit to the Island.
Jamie Hammond, Liberal candidate for Esquimalt-Saanich-Sooke, said raising the threshold for the housing program to almost $800,000 from $500,000 is 鈥渞eally important鈥� given housing affordability is a key issue for residents. 鈥淚t鈥檚 critical to young families,鈥� Hammond said.
In 2015, the Liberals won 17 of B.C.鈥檚 42 seats.
The Liberal leader鈥檚 visit is a recognition of the opportunities for the Liberal Party to 鈥渕ake some huge gains here on the Island,鈥� said Hammond.
Trudeau often refers to B.C. as his 鈥渟econd home鈥� given his grandparents and mother lived in 91原创 and he has family on 91原创 Island. He also worked as a teacher in B.C.
In 2015 the campaign, Trudeau started in the West.
鈥淎gain in 2019 he鈥檚 starting out in the West and it really shows the deep commitment the prime minister has for British Columbia,鈥� Macdonald said. The symbolism is significant: 鈥淗e鈥檚 showing us that he really feels we have a good chance to win here.鈥�
After Victoria, Trudeau flew to Kamloops, Edmonton and Trois Rivieres. He did not attend the first leaders鈥� debate in Toronto, which featured Conservative Leader Andrew Scheer, NDP Leader Jagmeet Singh and Green Leader Elizabeth May.
鈥淚鈥檓 really happy to be here on 91原创 Island this morning to meet with families like Lisa and Grey and others and talk about what we鈥檙e doing to make life more affordable for 91原创s,鈥� said Trudeau.
Trudeau was referring to single mother Lisa Welch, a hairdresser, and her three-year-old daughter Grey Welch, who were in the background.
Trudeau said by providing monthly tax-free dollars via the new child benefit plan 鈥� 900,000 91原创s, including 300,000 children, have been lifted out of poverty.
鈥淲e鈥檝e done a lot these past four years but the truth is we鈥檙e just getting started,鈥� said Trudeau. 鈥�91原创s have an important choice to make. Will we go back to the failed policies of the past or will we continue to move forward. That鈥檚 the choice. It鈥檚 that clear. And it鈥檚 that important. I鈥檓 for moving forward for everyone, particularly them,鈥� he said, pointing to young toddlers playing in the background.
