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Or prices for the other 60% of costs would rise to offset the reduction, meaning that the tax/fee/charge revenue instead becomes profit for private businesses.
by sowbug 3y ago
Or prices for the other 60% of costs would rise to offset the reduction, meaning that the tax/fee/charge revenue instead becomes profit for private businesses. Don't ask me to prove it, but that seems to be what has happened in the US with the 30% solar subsidy, the federal EV tax credits, etc.
- dools 3y agoAs soon as the cost to supply drops below the price people are able to pay, supply will increase. The reason supply is so low is because so few people can afford to buy a newly built house in an area in which they can also find a suitable job. Property price movements are dominated by new build cost in Western Sydney. However with the doubling of the first home owner grant in QLD that is exclusively available on new builds, expect to see huge supply and falling house prices there over the next 5 years. A great time for first home buyers, a bad time for boomers who bought those gold coast investment properties.