Will the carbon tax affect the price of my new home?
After so much debate and political angst, the carbon tax is now a reality for Australians, as announced by the Prime Minister on Sunday.
Both the Housing Industry Association (HIA) and the Real Estate Institute of Australia are reeling that the new home construction industry has been left out of any due compensation.
While it might seem all bad news, the carbon tax won't have any effect on labour, which represents about 50% of the cost of building a new home.
What it does mean is that the carbon tax will increase manufacturing costs of materials and key suppliers will be affected in the new home construction industry.
Consumers will potentially feel price increases, passed on by manufacturers of building supplies and to what exact extent this will occur is yet to be seen.
The REIA is estimating about $5000 for each new home but at Porter Davis we are committed to working hard alongside our suppliers to minimise the impact and to continue delivering stylish and affordable new homes.