HE owns a modest home in a modest street but Prime Minister Tony Abbott’s Forestville home will land him more than a $1 million profit when he finally sells the property.

The windfall shows just how much Sydney housing prices have ballooned, blocking gen Y babies from being able to purchase their own home.

Mr Abbott sparked controversy on Monday when he said he hoped housing prices would continue to rise in contrast to his Treasury Secretary John Fraser who warned the property bubble was at risk of being “over heated”.

The Prime Minister yesterday insisted most Australians wanted house prices to rise so they could secure their future and slammed Opposition Leader Bill Shorten for wanting to destroy housing prices.

Analysis done for The Daily Telegraph showed Mr Abbott paid $351,000 in 1994 for his home and it is now worth $1.5 million. In comparison, Mr Shorten’s Melbourne home, which was purchased for $842,000 in 2009, would be worth $1 million.

“Millions of Australians have mortgages and the last thing they want to see is the decline in the most important asset,’’ Mr Abbott said.

“Just imagine how you would go if you had to repay your mortgage when your house was not worth what it was when you bought it.”

Mr Shorten said Mr Abbott “just didn’t get it” and needed a plan for younger buyers to enter the housing market.

Belle Property Seaforth agent Matt Brady said Mr Abbott’s house — with four bedrooms on 696sq m — would be worth in the “mid $1 millions” but was far from being flash.

“He lives in a modest home in a modest street,’’ he said.

Australian Council of Social Service chief executive Cassandra Goldie conceded low rates were inflating the market but said the government had to be careful tax breaks did not worsen the problem.

“Tax arrangements need to improve housing affordability not undermine it as they currently do,” she said.

Meanwhile, Australian Taxation Office acting second tax commissioner Neil Olesen confirmed the ATO were investigating 195 properties possibley purchased illegally by foreign investors at a Senate estimates hearing.

“I wouldn’t be surprised if a fair slab of them were towards the top end of the market,” he said.

Foreign investors have also been blamed for booming housing prices.

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