Should first home buyers access their super for a new home?

Hey All,

Stumbled across this:

Independent senator offers "super idea"

Nick Xenophon, South Australian Independent Senator, has suggested would-be homeowners should access their super in order to obtain a slice of the property pie.

The senator will introduce legislative changes when the state's parliament goes into session this spring that will allow first time buyers to use a proportion of the super savings towards a deposit for a home loan, after being inspired by a similar Canadian scheme.

"With more and more Australians finding it difficult to break into home ownership, adopting the Canadian scheme would make a difference to many thousands of Australians each year," Mr Xenophon said.

Link here:

http://www.ratecity.com.au/home-loa...home-buyers-access-their-super-for-a-new-home

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Initially i thought yeah sweet,good idea *IF* it get's passed BUT then there is the roll on affect.I don't need to spell it out.

Cheers Spades.
 
Watch the middle and outer ring property prices BOOM.

I'd sooner remove cost barriers of entry, than provide financial stimulus into the equation. I find the largest hurdle for FHBers is to save for a sufficient deposit to fund the purchase AND government charges, but that may have a bit to do with the absurd stamp duty payable in SA.
 
Hey CJay,

You think this is good idea then?

Good for sellers but LL's?

Btw you look like Andy Lee in your avatar ie:Hamish and Andy :p

Cheers Spades.
 
I actually think it's a bad idea. It would just cause another pump in prices, until such a point that property is as 'unaffordable' to FHBers as before, much the same that short term FHOG value increases provided similar market distortions.

My view is simple, that property taxation should be rolled back as much as possible, this increases affordability, mobility and the general health of the economy.
 
This guy is a few sandwiches short of a picnic. His discussions too often defy logic (but when the wind is blowing in the right direction & the sun shining behind him he can be spot on).

If the pretext of super is to offset the reliance on the pension at the end of a 45-50 year working life (yes at 70), why would granting access to super at 25-45 to buy a house (without any control over the way the money is spent) be a means to reduce that reliance (considering that the PPOR is exempt from the means test)?
 
I actually think it's a bad idea. It would just cause another pump in prices, until such a point that property is as 'unaffordable' to FHBers as before, much the same that short term FHOG value increases provided similar market distortions.

My view is simple, that property taxation should be rolled back as much as possible, this increases affordability, mobility and the general health of the economy.

I think its a great idea. Who cares about inflating prices in the future, thats future me's problem. Future me can deal with it then. :p

Just look at the FHSA.... that should be an indication of how well it will work. If only those people who want this opened a FHSA back then and actually contributed to it! :confused:

Seriously, why do we even have these stupid politicians for? Why are there so many of them?

I remember when Rudd increased the FHBG from $7k to $14k during the GFC. Prices increased when they probably should be come down.

I have to wonder if Rudd left the FHBG at $7k back then what would housing prices be like now... probably a little more affordable.
 
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