Development attracts HUGE tax , Santa and Bang are certainly...

Development attracts HUGE tax , Santa and Bang are certainly correct on That one , Its Tax , Tax ,Tax ..local , State , Federal , local taxes have increased at an incredible rate .

As Santa says , the convernants have incredibly severe , especially as we move towards 7/8 star living requirements , once again many of these are not brought by developers , Its local council that put all these requirements on your permit ..but visit council and they try to make it look like your idea .

Take the time to have a look a Vic Urban ( the state governments , property developer Vic ) , have a look at the building Regs there .. www.vicurban.vic.gov.au , now they will tell you Its all about sustainability , which is fine , but It greatly adds to construction cost .

Materials have been reasonably stable , so have wages , but all of these requirements just add to construction costs , I see it everyday . But when you clearly address all the direct / indirect taxes you will clearly see the vested interest in not wishing to see a price decline .

For myself in the industry , I would like to see prices fall a bit , but I think its highly unlikely because land supply is tight , Its really now so much work and tax from Raw dirt though to sale to the customer . Land prices in outter Melbourne are at absolute all time highs and are continuing to rise release to release .

When the original FHBG was announced , after the GST was introduced it was $14,000 , all they were giving back was what they were now collecting , but prices Rose by $20,000 overnight . If they are going to use these stimulus packages , It should certainly only be on new construction , this wouldn't come remotely close to what is collected in direct / indirect / local tax .