Marijuana Legalization and Real Estate
As of October 17, 2018, Canada legalized the growing and recreational use of Marijuana. There are still many questions that are still uncertain. First off, with the new legalization, the law allows an individual to grow up to 4 plants in their residence. So how does that affect real estate in general? As with what we saw in Colorado, USA. After the legalization of marijuana, there was a huge growth in demand for warehouses and retail shop. In Canada we are seeing the same effects here, except there is no demand in a retail shop in Canada due to the fact you can only purchase them from government-run or approved shops, or mail order online. So what about residential real estate?
The thing to keep in mind about buying, selling or even renting real estate, is that its only been one month since legalization and there is not much data on how it is going to affect the real estate market for residential. According to a report by Zoocasa, 52% of Canadians are less likely to consider buying a home that has legally grown marijuana. This percentage is higher with the Baby boomer and the Gen Xer than the Millennials when it comes to considering a home (58% and 59% to 38% respectively). So with that reporting, it sure seems that it could devalue your home, but unfortunately what if the seller does not disclose? or how about, is there a law requiring such disclosure? Being that this is such a new law, we still have a lot of information we need to digest, and hopefully sooner than later, we will have a good answer for you.
So when you are out looking for a home, always do your due diligence and ask questions. Get a home inspection, do everything you can to make sure you are doing what is best for you, and understand all the risks.