At a first glance, this appears to be a very progressive program. While still in its early stages, with all the details not 100% clear, it seems that the city will allow a Langford resident who currently does not own to purchase a 2 bedroom condo for a guaranteed price of $450,000.
A quick look at Langford MLS listings shows only 4 properties at this price point or less. So this leads me to assume that Langford will build these condos and then provide them for sale for $450,000. If so, great this program helps buyers get in, while also manufacturing the extra supply to meet this extra demand. Although, somehow, I am hesitant to believe this is the case, and rather just another government policy aimed to spur demand which will only put further pressures on the market, pushing prices higher.
The interesting part of this proposal is seen once you get into the details (those provided at least).
- The city of Langford will 'top-up' your downpayment (assuming to minimum 5%) to assist with entering the market, this will be based on income.
- Households with incomes up to $100,000, will be granted 75% of their downpayment
- Households with incomes from $100,000 up to $115,000 will be granted 50% of their downpayment
- Households with incomes from $115,000 up to $125,000 will be granted 25% of their downpayment
The above table shows the grant amount as a % of the downpayment based on the income bracket of the applicant. This information is then translated to show the dollar amount which will be granted versus the money which the applicant will need to bring to the table.