If we want to encourage more people to enter the housing market, there needs to be some incentive for them to do so.
Buying a home is a great dream for many young Australians, and will probably stay that way at least in the immediate future. For those of us who do take the plunge into debt, we are faced with a very ugly word repeatedly: TAX.
For a first home buyer or even a young player who might not be as familiar with the "T" word as our parents are, it can be a very disheartening experience to allocate such a large chunk of your guarded little nest egg to your lender and the government.
Pulling the deposit together is a big enough task without factoring in all the pricey and, in some cases, seemingly unnecessary extras (could someone please justify to me why I need to pay a registration tax for my mortgage? Surely having the mortgage in the first place is enough of a commitment, without being slapped in the face with another monetary request?). Don't even get me started on stamp duty....
Beware the other naughty word: FEE. This may not sound as harsh as TAX but it sure means the same thing: more money. As hard as you try to assure yourself that all of the little (sometimes hidden) fees and charges, that do add up to be quite a lot of money in the end, are entirely worth it because it's one step closer to being a home owner, it really is downright unfair.
If people really want to understand why housing affordability is such a scary problem in this country, we need to look beyond just the pricing issue. It's not as simple as believing that if house prices and interest rates start to fall, home buyers will come out of the woodwork.