Carbon tax to push up new-build prices for home loans customers

Tuesday 12 July 2011

Article by Mozo

Home loans applicants considering purchasing a new-build home may do well to purchase one sooner rather than later as the cost of these abodes could be set to increase.

Carbon tax 'could make new property more expensive'

The Master Builders Association (MBA) revealed that the predicted rise in the cost of materials caused by the impending carbon tax could push the cost of a new home up by $5,000.

Wilhelm Harnisch, chief executive officer of the MBA, said the tax would be a "negative for the building industry", adding that there is "nothing in it for homebuyers".

Figures from the organisation suggested that metal prices could surge by as much as four per cent, while the cost of minerals might be pushed up by three per cent.

Overall, it forecast a rise of between 1.6 per cent and two per cent in the overall cost, which would take the average new-build price to $305,000.

This comes after John Thurtell, general manager of builder PJ Burns told the Queensland Sunday Mail that new developments often have smaller backyards than existing properties.

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