Allowing first home buyers to dip into their superannuation to purchase their first property is a good idea, according to a leading housing association.
After the release of the Intergenerational Report last week, Treasurer Joe Hockey has said Australia’s superannuation system needs to be more flexible, including allowing homebuyers to access their superannuation to help buy their first home.
While this proposal has been slammed by some, who argue it would increase pressure on the federal government's aged care budget and could lead to financial stress in retirement, the Housing Industry Association says it is “absolutely a discussion Australian needs to have”.
“There are numerous benefits for first home buyers in accessing their superannuation savings, including bridging the deposit gap, reducing the size of their home loan, reducing the LVR and reducing the cost of LMI,” said HIA Chief Executive Industry Policy and Media Relations, Graham Wolfe.
According to Wolfe, making it easier for Australians to own a home will actually make them better off in retirement.
“Treasurer Hockey is right to flag the ongoing housing affordability challenges facing first home buyers. As a nation, we need to consider looking at superannuation in a different way. If superannuation is about preparing for retirement, what better way is there of achieving this goal than opening the door to home ownership,” he said.
“Accessing a portion of superannuation savings may be the difference between young families securing their future by starting the journey of home ownership, versus staying on the rental treadmill.”
What do you think? Take our new poll: Should first home buyers be able to access their superannuations for a house deposit?