15 Years of Your Mortgage Goes to the Government — What That Means for Australia’s Housing Crisis with Tim Reardon

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. ·         Government policies significantly impact housing supply and affordability. ·         Subsidizing first home buyers does not address the root causes of housing unaffordability. ·         The 1.2 million homes initiative requires substantial policy changes to succeed. ·         Foreign investment is crucial for increasing housing supply. ·         Build-to-rent projects are not currently providing affordable housing options. ·         Interest rates directly influence the volume of new home building. ·         Labor availability is a significant challenge for the construction industry. ·         Policy reforms are necessary to improve housing supply and affordability.   Chapters  01:12 Understanding Mortgage Repayments and Taxes 04:54 Challenges in Housing Supply and Infrastructure 09:00 Government Schemes and Their Limitations 10:39 The 1.2 Million Homes Initiative 14:41 The Future of Build-to-Rent Projects 17:01 Market Dynamics and Housing Affordability 20:27 Structural Challenges in the Housing Industry 23:18 Conclusion and Future Outlook   Links and Resources: Answer this week’s trivia question here- www.PropertyTrivia.com.au ·         Win a hard copy of How to Grow a Multi-Million Dollar Property Portfolio – in your spare time. ·         Everyone wins a copy of a fully updated property report – What’s ahead for property for 2025 and beyond   Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Michael Yardney – Subscribe to my Property Update newsletter here  Tim Reardon HIA Chief Economist  Get a bundle of eBooks and Reports at www.PodcastBonus.com.au   Also, please subscribe to my other podcast Demographics Decoded with Simon Kuestenmacher – just look for Demographics Decoded wherever you are listening to this podcast and subscribe so each week we can unveil the trends shaping your future.