THE PROPERTY YOU PURCHASED COSTS 75% MORE THAN WHAT YOU THOUGHT

I saw an article about the reserve Bank Governor saying that state government stamp duties were what was causing the unaffordability of housing. The article gave an example that the average house price in Sydney of $1.5 million would attract over $66,000 in stamp duty.

I started to think of all the other costs of purchasing a property such as real estate agent fees conveyancing and the like. To help I use Google Gemini AI. It hinted about other costs, like insurance, council rates, land tax and of course interest payments. Although the seller does not pay stamp duty the purchaser does so it is a cost.

Also although land tax does not get paid on the principal place of residence, it is a cost that would indirectly get passed on to anyone purchasing a property that had been owned by an investor.

Rather than spending a lot of time researching and calculating this myself, I again used Google Gemini AI to do it for me.

The final result is that all these costd amount to over 75% of the purchase price of a average property.

The figures are here:

http://greig.homeip.net/doku.php?id=housing_cost_of_price

The biggest cost of course is interest followed by maintenance.

The issue here seems to be that to many things are attached to property prices. With certain segments of the “economy” addicted to property, I don't see this changing in the future.

Ther is a state government that has instigated a tax on vackent houses and non developed land, supposedly to help with housing affordable.

My take is that it will have the opposite effect simply because of the concept of recovering costs.

What do you think?