Labor's poor economic management hurting homeowners

Housing affordability continues to suffer under Labor with mortgage stress rising from 15 per cent of home borrowers in September 2010 to 21 per cent in 2011, according to a report from mortgage insurer Genworth Financial Services, said Senator Marise Payne, Shadow Minister for Housing.

Senator Payne said the report shows almost one in four first-homebuyers expect to find it difficult to meet repayments over the next 12 months.

“Labor’s extended first-homebuyer’s grant encouraged young buyers to compete for housing at a time of low interest rates in the aftermath of the global financial crisis, artificially inflating the lower end of the market,” Senator Payne said.

“Home borrowers have now faced seven consecutive interest rate rises since late 2009 under Labor, adding about $6,000 to the cost of an average mortgage.

“The Rudd-Gillard Government continues to spend $100 million per day, putting pressure on inflation and helping to increase the chances of further rate rises later this year.

“It is not surprising that first-homeowners are concerned about the future as the Rudd-Gillard Government wants to slug them with a carbon tax that will drive up energy bills by $300 a year, add 6.5 cents per litre of petrol and add $6,240 to the cost of building a new house.

“The Rudd-Gillard Government also plans to introduce a mining tax that will severely impact the value of mining shares held in a typical employee’s superannuation account.

“Families were also hit hard by natural disasters in Queensland and Western Australia but the Government was so financially unprepared, it had to hit up taxpayers for a flood levy to pay for rebuilding, even after generous Australians had already donated millions of dollars.

“This Government must stop its obsession with taxing and spending and show the same restraint as families have to, by living within its means.”