Dear All,
1. it is reported in the Australian Newspapers this morning that
http://www.theaustralian.news.com.au/common/story_page/0,5744,18627237%5E2702,00.html
a. SKYROCKETING taxes and red tape account for more of the cost of a new home than the land it sits on.
b. A quarter of the money Australians pay for new houses and units is chewed up by massively increased charges imposed by local, state and federal governments.
c. The trend is driven by the governments' desire to make homeowners pay for infrastructure, rather than subsidising it out of the public purse.
d. Government charges associated with a typical house and land package had risen an average of $77,000 since 2000.
e. the problem was most pronounced in Sydney's northwest where 35 per cent - or almost $200,000 - of the price of a new home was eaten up by government charges where in comparison the cost of the land was only $116,667.
f. Housing Industry Association senior economist Simon Tennent said high government charges were pricing many families out of the housing market.
2. Is it then true that the land and subsequently housing prices in Australia are generally "over-inflated" in Australia, rather than properly reflecting its actual true values, as a result? Do you agree or disagree? Why?
3. As suggested by Simon Tennant, it is then these Govt charges/taxes that are actually making the housing non-affordable for the average 1st homebuyer in Australia, rather than the real rise in housing prices. Do you agree or disagree? Why?
4. it is my belief that following the GST implementation in July 2000, the housing values in Australia will have to shoot up by more 10% overnight, with no nett real increase in house values, all things being equal. Do you agree?
5. Are we in effect "over-paying" for our real values of housing in Australia and indirectly causing some sort of an inherent housing bubble to build up unknowingly, as a result of our continued property investments into the various Australian property markets? What are the other related implications that property investors should aslso take note, as a result of this new self-realisation/ "discovery" and change in the govt funding trend?
6. For your further discussions, please.
7. Thank you.
regards,
Kenneth KOH
1. it is reported in the Australian Newspapers this morning that
http://www.theaustralian.news.com.au/common/story_page/0,5744,18627237%5E2702,00.html
a. SKYROCKETING taxes and red tape account for more of the cost of a new home than the land it sits on.
b. A quarter of the money Australians pay for new houses and units is chewed up by massively increased charges imposed by local, state and federal governments.
c. The trend is driven by the governments' desire to make homeowners pay for infrastructure, rather than subsidising it out of the public purse.
d. Government charges associated with a typical house and land package had risen an average of $77,000 since 2000.
e. the problem was most pronounced in Sydney's northwest where 35 per cent - or almost $200,000 - of the price of a new home was eaten up by government charges where in comparison the cost of the land was only $116,667.
f. Housing Industry Association senior economist Simon Tennent said high government charges were pricing many families out of the housing market.
2. Is it then true that the land and subsequently housing prices in Australia are generally "over-inflated" in Australia, rather than properly reflecting its actual true values, as a result? Do you agree or disagree? Why?
3. As suggested by Simon Tennant, it is then these Govt charges/taxes that are actually making the housing non-affordable for the average 1st homebuyer in Australia, rather than the real rise in housing prices. Do you agree or disagree? Why?
4. it is my belief that following the GST implementation in July 2000, the housing values in Australia will have to shoot up by more 10% overnight, with no nett real increase in house values, all things being equal. Do you agree?
5. Are we in effect "over-paying" for our real values of housing in Australia and indirectly causing some sort of an inherent housing bubble to build up unknowingly, as a result of our continued property investments into the various Australian property markets? What are the other related implications that property investors should aslso take note, as a result of this new self-realisation/ "discovery" and change in the govt funding trend?
6. For your further discussions, please.
7. Thank you.
regards,
Kenneth KOH
