Let me just say the cost of building a house has not increased due to increase cost of material or labour but to the fact that government are continually appling new taxes and requirements on construction. For example a lot of tilers ,gyprockers,concretors,labourers are now new immigrants who can hardly speak english and work for well below standard wages and work 12 hour days.Material itself is coming from Chiona at less cost than 5 years ago. Government has on the other hand applied the GST, councils now need reports in regard to soil types, water discharge reports, shadow reports, baxsis reports, etc etc,if it was'nt for our imported work force the average house would be twice as much. So the cost of home is going up due mostly non productive paper pushing and not due to labour and materials as much as you may think. In the end people borrow this money to pay government GST on home buiding (remenber this is tax on spending not money earn't) from banks, and only because they believe property will always go up, but you get to a point were the system can no longer pay for all this crap, and at that point the system fails. And the same system that pushed prices up( the belief that prices can never come down) will reverse and as prices fall due to people no longer getting easy credit the system will callapse. IT's only a matter of time...
