CARBON TAX WILL FURTHER SQUEEZE HOUSING AFFORDABILITY

CARBON TAX WILL FURTHER SQUEEZE HOUSING AFFORDABILITY

Cost impact will push up the average Sydney house price - REINSW

11 July 2011

Increased construction costs as a result of the new Carbon Tax are likely to further erode housing affordability across Australia, according to the Real Estate Institute of NSW.

The details of the new tax released yesterday show increases in construction materials will hit new housing development hard.

The REINSW is warning that the Carbon Tax will push the medium Sydney house price up making it even more difficult for people to realise the Great Australian Dream of owning your own home.

“There is no doubt that the Carbon Tax will significantly affect housing affordability across NSW and indeed Australia”, said REINSW President Wayne Stewart.

“The impact of the carbon tax on new residential development will inevitably result in higher prices for home buyers.

“Increases in the cost of construction materials including bricks, steel and aluminium will be simply passed onto purchasers, pushing the price of new housing higher.

“The knock on effect of this could see the medium Sydney house pushed out of the reach of many prospective home buyers.

“The Carbon Tax has the potential to push the home ownership dream into the realm of fantasy for many.

“The direct and indirect impacts of the Carbon Tax on cost of living will seriously erode housing affordability and result in a generation of Australians who will never know the feeling of owning their own home.

“The Federal Government must acknowledge the impact of the new Carbon tax on housing affordability and remove high property taxes and other imposts to redress the balance and keep the dream of home ownership alive”, said Mr. Stewart.

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