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March 29th, 2013 
Peter Nolan
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Taxes, levies and charges make up nearly 40 per cent of the cost of new homes in Adelaide, the Housing Industry Association says.
The finding was contained in a report commissioned by the association on housing affordability in Australia’s capital cities.
The association says interest payments on taxes are adding more than $280,000 on average to home loans.
State executive director Robert Harding says the South Australian Government relies heavily on property tax for revenue.
He says as housing activity continues to slow, the Government should consider other income streams.
“We end up with additional charges over and above that of stamp duty, land tax and usual council augmentation charges,” he said.
“It’s little wonder when you look at those percentages that the cost of housing is out of the reach of most middle-income earners and particularly first home buyers.
“The developer or the builder is going to pass on at least a portion of those taxes to the ultimate purchaser and the purchaser’s going to have to fund those amounts somehow.
“That’s generally through their mortgage, so it impacts on their ability to repay that mortgage.”
Topics:
housing-industry,
housing,
sa,
adelaide-5000
Source Article from http://www.abc.net.au/news/2013-03-29/housing-affordability-report-taxes/4601328
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