Almost a quarter of first home buyers are prepared to borrow the full purchase price without saving a deposit, while more than a quarter wanted their employer to salary sacrifice for their property goals.
According to research performed by mozo.com.au, 22% of first home buyers said they would be prepared to borrow the full amount, including the deposit, from the bank. Twenty-seven percent said they would prefer their employer to salary sacrifice 9.5% instead of superannuation. One fifth (20%) said they would like early access to their existing superannuation balance to put together a deposit and 49% said they would be prepared to save diligently for a deposit.
Mozo director Kirsty Lamont said that it’s interesting to see which option first home buyers would choose when facing increasing property prices.
“It’s clear Gen Y feel it’s unattainable to enter the property market by saving alone, and want the Government to seriously consider superannuation as the solution,” she said.
“Using superannuation to fund property sounds good in theory but it’s not the silver bullet for first homebuyers.”
She noted that first home buyers have to consider stamp duty, mortgage interest, maintenance costs and the lost returns the super could have earned.
“With this seemingly quick fix what’s also lost is the important discipline of regular savings, which can become a harsh reality when the mortgage repayments start,” she warned.