Biggest Property Related Issues Ahead of 2007 Election
“Housing affordability is a serious issue which needs to be addressed immediately and comprehensively,” said Mr Tony De Domenico, chief executive officer of the Urban Development Industry of Australia. “The rising number of various taxes and charges paid by developers are being passed down the line to the consumer particularly in metropolitan growth corridors.”
“As Australia’s three tiers of government take on less responsibility for the provision of infrastructure such as roads, sewerage, recycled water and more, it is left to the consumer to pay for services formerly funded from rates and taxes.”
Property Council of Australia Victorian division director Jennifer Cunich agrees reducing taxes will ease the affordability crisis. “Developer (aka homebuyers) charges should be abolished, along with the red tape that artificially inflates new home prices.”
“Yes housing is a state government responsibility, however in these days of ‘aspirational nationalism’ the electorate wants solutions to big problems from the big end of the government.”
The Real Estate Institute of Victoria, like the PCA, is calling for a housing minister to be appointed to the federal cabinet to work closely with the State Governments and industry on improving housing affordability.
“Relative to income, house prices, average loan sizes and repayments are much larger now than they were 17 years ago,” said REIV chief executive officer Enzo Raimondo. “Australian families now need 34.8 per cent of family income to met average loan repayments.”
