Winnipeg isn’t the first government to impose growth fees to help cover the costs of the demand of the demand for more housing and other entities in that particular location. Winnipeg is growing by leaps and bounds, and there are people on both sides of the issue. There are quite a few pros and cons to consider when the issue of growth fees is on the table.
One of the main issues that long time residents of Winnipeg have is they feel they are being penalized. They feel they are being asked to pay the growth fees so more people can come to the area they have already been living in and paying for. They don’t see any real benefit of doing so for them. However, this does bring in more businesses they can enjoy. It also brings along better market values for property. Should they decide to sell their home or business down the road, they are likely to get more for it.
Developers feel they get the short end of the stick when it comes to the growth fees in Winnipeg. They have to add in those additional costs when they give a quote for a given project. However, the reality of it is they often don’t pay those costs out of their profits. Instead, it is passed along to the new buyers and that means they are the ones actually paying the growth fees and not the construction companies or the developers.
However, many developers argue they aren’t always able to do that. They have to negotiate the price with the potential buyer. Often, they have to make it lower in order for them to make that commitment or the project isn’t going to move forward. Yet the developer feels they need to make enough profit on the project for it to be worthwhile.
Some believe these growth fees are actually a way for the Winnipeg government to discourage additional growth. Perhaps they want to keep that growth to a minimum but legally they can’t stop it. They have simply found a back door method that is legal for them to be able to slow it down and to have some control over it.
Real Estate Market
From a leadership point of view, the growth fees make sense. They offer a stronger real estate market for people on both ends of the equation. Those that own property will see an increase in the equity and value. Those that would like to buy real estate find more options available in prime locations.
However, some developers have refused to take on projects in areas of Winnipeg where the growth fees are imposed. This means if you would like a home or a business built in one of those particular areas, you will struggle to find someone to do so. They are taking such a stand as their way to protest those fees being added on in the Winnipeg area. There are certainly plenty of pros and cons that have to be considered before making a decision about where they stand on the issue.