What are peoples thoughts on the effect the upcoming carbon tax will have on property investing?
Could it cause more people to not be able to afford a mortgage and need to rent,therefore being good for landlords?
Or could it cause even more houses to be on the market for the same reason and make prices stagnate in some areas?
Also do some of you think there will no effect at all?
I would like to know what others think.The cost of construction material is said to increase so are running costs.
How will that play out? Anyone’s guess – depends upon how Jools dolls out the compo.From initial reports it appears that any compensation will be far short of any added costs incurred. If it wasn't there would be no use of having the tax. I can only imagine that if the cost of livings escalates far ahead of wages the people paying mortgages will be struggling more than they are now.
I’m sure costs of the key inputs for a bricks-and-mortar investment (i.e. “Bricks” and “Mortar”) will rise.
So we can expect the cost of building or developing to rise – with those costs passed onto end homebuyers.
I’d assume this will either increase the cost/value of housing (both existing and new), or decrease its value.
Interesting topic
This is going to be interesting to watch!
I'm thinking materials costs will go up, and that the compo (cheers Scott) aint going to be enough to cover the cost. New builds will cost more to build, timber will go through the roof, concrete and other high polluting items will go up.
Anyone worked out how the carbon credit thing is going to work? You can buy them on Graysonline
http://www.graysonline.com/search.aspx?q=carbon+offset so this will be interesting.Construction methods may have to change, I've read through some of the stuff available on the govt website (awhile ago might have changed since) and for tree farming etc to have carbon offset, you can't cut down the trees. At all. Timber frame houses may be out, but with the steel industry being 'dirty' carbon wise, who knows.
Wait and see I guess, I can't see the cost coming down.
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeThe worst part of all of this,is that carbon dioxide is not even on the government's own national pollution inventory,which is a rather comprehensive list. Since it is not a pollutant this is not a surprise, but the carbon tax will have a quite negative effect on the economy imo. People seem spooked enough as it is,the last auction i went to was a sellers nightmare,about 20 neighbours in for a sticky beak and only 2 bidders. I don't think the carbon tax will improve this situation.
And to add australia has one of the lowest levels of carbon emissions compared to the rest of the world. But we are one of the first to vote it through?? IMO if the cost of building materials goes up, it will be harder for people to afford to build hence making australias housing shortage even worse…. Government either has some information that none of us do or they are just that stupid… ( i favour the later) The next 5-10 years will be mighty interesting thats for sure lol. Strap in and prepare to ride the roller coaster. Whats the point in having a rich economy if all your people are poor? You can’t have one without the other right?
Indeed. Correct me if i am wrong but was it Winston Churchill who said a country that tries to tax itself into prosperity is like a man standing in a bucket trying to lift himself up with the handle? Firmly believe that is the case here. Can only hope something good happens before July 1st.
Solomon10 – Couldn't agree more. I wish these politicians had a bit of brain and could think like a 'normal human being'. I'm anxiously waiting for likes of Palmer or Twiggy (who has a bit of cash) to challenge this case in the High Court so that we can get this delayed until this Govt goes. I'm not a supporter or Labour, Liberal or Greens and believe in voting for the candidate and not the party but I guess they have left me with a very little choice but 'donkey vote' in the next election.
speaking about the carbon tax, check out this cartoon by larry pickering.
The cost of entry to the tip (aka refuse facility) has gone up (apparently it has doubled) in my investment zone. Perhaps this will result in people dumping their rubbish on the roadside instead. Yay.
The council rates notices arrived with a statement printed on them blaming the increase in council rates on the garbage collection cost, and in turn blaming the carbon tax.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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