Will a Carbon Tax effect house prices?

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Unfortunately the Carbon Tax will affect almost everything we do. It will be so far reaching and have effects on items that nobody has really thought of. It will also have an effect on some prices where there is no reason for it to. You will see nearly every item, goods and service change price and the blame will go “THE CARBON TAX”.

I heard this morning that builders will be charging another $5000 for an average home before taking into account the fit out. Even though fuel is exempt, the purchase of trucks and parts will still raise the price of everything that is delivered. Therefore an item that has no carbon footprint to manufacture still has to be delivered and will therefore go up in price.

When prices go up and people spend more money, then the likelihood of an interest rate rise as a direct result of the tax is possible. If people do not spend, then the rates won’t go up but our economy will suffer. I am not a world class economist, but I think this Carbon Tax will affect all of us a lot more than our Prime Minister is talking about.

I don’t normally talk politics but I will make one comment. When a prime minister goes to the polls and mandates ‘I will not’ do something, gets elected by the narrowest of margins and then instigates that which she has mandated not to do; it should be criminal negligence. I have no issue about looking after the planet, and if our nation wants to be the world leaders in this, then so be it, however, Ms Gillard should call an election or plebiscite. This is grossly unfair and underhanded.

On a lighter note, the enormous war chest the Greens may control to offer out grants to all and sundry for renewable energy research and development may be a nice kick start to the economy. If it is run anything like the “Building the Education Revolution” or the “Insulation Scheme” there will be billions of dollars being flung back into the economy.

The dust will not settle too much on this for quite some time, so the property market is unlikely to see a direct movement that you could attribute to “The Carbon Tax” I think there will be many other factors, the main two being supply and demand, that will affect the market long before the Carbon Tax.

Ian James

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.