Did you know that for the first 15 years of your mortgage, you're working mostly for the taxman, not your future wealth?
It’s a startling claim, but one backed by data from the Housing Industry Association — and it sheds new light on why housing affordability is getting worse, not better.
Today, I’m joined by Tim Reardon, Chief Economist at the HIA, to unpack this extraordinary insight.
We explore how government taxes and regulatory charges are silently front-loading the cost of home ownership, inflating house prices, and burdening Aussie families before they’ve even laid a brick.
And while there’s some good news on the horizon — with interest rate cuts expected to drive a recovery in home building — the longer-term challenges are immense. Think taxes, planning bottlenecks, and a construction industry on its knees due to chronic underbuilding and workforce shortages.
Whether you’re a property investor, homeowner, or policymaker, this conversation will leave you thinking differently about the hidden forces shaping the housing market — and why just building more homes won’t be enough.
Takeaways
· The first 15 years of mortgage repayments primarily cover taxes.
· Approximately 50% of the cost of a new house is attributed to taxes and fees.
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