Want to help improve the economy? Buy a new home or condo. Consumer confidence has a lot to do with making an economy thrive. The more optimistic consumers are about their financial situations, the more spending we see happening. In turn, this drives economic growth and encourages investment and job creation. In fact, consumer spending is a significant driver of our economy by contributing to our GDP (gross domestic product) and employment. According to the Canadian Construction Association, the construction industry employs more than 1.6 million workers in Canada and contributes approximately $162 billion to our economy each year. This accounts for 7.5 per cent of Canada’s GDP.

Foundation of wealth creation

The construction industry also involves numerous related services, including sales and marketing brokerages, heavy and civil engineering, trade contracting, property management firms, ad agencies, public relations firms, cabinet companies, roofing contractors and numerous construction suppliers, representing thousands of jobs.

Real estate is also a foundation of wealth creation for homeowners and has been for decades because of the appreciation of properties. Canadian investment dollars also make for substantial rental income for investors. Currently, forces have conspired to make this an excellent time to buy a new home or condominium.

First, pricing has come down out of necessity, especially when you consider the generous incentives developers are offering nowadays. Ask about low and extended-payment deposits, up to five years free maintenance fees, cashback on closing, moving costs paid and zero closing costs.

For example, at The Dawes by Marlin Spring, Condos in the Danforth, purchasers of three-bedroom suites receive a payment from the developer after closing of $4,000 per month for two years; two-bedroom $3,000 per month for two years, and one-bedroom and one-bedroom plus den $2,700 a month for two years. This amounts to up to $96,000 in total savings and helps pay the carrying costs each month for the duration. In addition, there are reduced development charges and levies, and owners have the right to lease during interim occupancy.

Historically low rates

Mortgage interest rates are still historically low, and this has a massive effect on how much in monthly payments buyers can make. And remember the new government help for affordability (elimination of GST for first-time buyers up to $1 million; lower GST for up to $1.5 million). In addition, there is talk of expanding this benefit to all new home buyers, not just first-time purchasers.

One of the best things about buying a new home or condominium is that you can find something that fits your lifestyle and timing. Move in now or in a couple of years – and be the very first to live in your beautiful space. Warranty coverage is another benefit of buying new.

When our housing market booms, there are ripple effects that contribute to a healthy economy. If you are thinking of buying your first home or you are an experienced homebuyer, consider taking a good look around right now for incredible deals. Become an economic driver for your financial future and that of Canada’s. But new, and buy now.