Middle income earners could soon feel the strain of owning their own home, as the federal government’s budget takes effect.
Harris Real Estate managing director Phil Harris said the budget did little to alleviate the pressures of soaring house prices and lack of stock on the market.
Wayne Swan’s $2 billion ‘welfare assault’, which will strip close to 40,000 families of welfare payments and family benefits, failed to consider the growing cost of living and will place increasing pressure on middle income home owners and buyers, Mr Harris said.
“This reform continues to limit the growth of Australian families as the government choose to ignore the high cost of new housing which sees an ever increasing percentage of the purchase price attributable to government taxes, fees and charges,” Mr Harris said.
“Unless the high taxation of new housing is lessened and the housing shortage diminished, Australian families will continue to struggle to afford their first home, maintain current mortgage payments or face astronomical rental costs.”