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Broker association delivers caution for first home buyer super scheme

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Australian Broker | 04 Sep 2015, 07:59 AM Agree 0
Allowing first home buyers to access their super to purchase property would help “enormously” if it is regulated cautiously, according to one broker association
  • Steve McClure | 04 Sep 2015, 09:16 AM Agree 0
    We keep quoting Canada, but they don't have first home buyer grants and the NZ property market is different. We should definitely explore possibilities, but have statistics on amounts of super held and needed by FHB's been examined?

    What about broadening FHOG eligibility but making it repayable on sale, or pro rata capital gain? During a time of budgets deficits, there are a lot of FHB's that have benefited greatly from taxpayers dollars, with no return to that pool of funds to help future FHB's.

    Certainly, an increase in demand leads to even more price rises, and the problem compounds. Therefore, maybe increase supply via "FHB only" properties in conjunction with above. Its not a simple "hit the super" fix.
  • Thinker | 04 Sep 2015, 10:53 AM Agree 0
    "According to the FBAA, figures show that an average Australian 30 year-old couple has around 45 to 50 thousand dollars in their super fund, which White says may only be just enough to cover the stamp duty with so many wanting to buy in prime residential areas."

    Where I come from that stamp duty will cover a purchase of $1.1m and I don't get many FHB's spending that kind of money.

    That said I think it is a great idea - I have said on these pages before that I believe that access to super should be restricted to FHB's up to the age of 30 and only for those building, not buying. That way we don't need to worry about increased housing-supply pressure and by building they are stimulating the economy. That way they are giving back something after receiving FHOG's and stamp duty exemptions etc.

    Also, for those concerned about funds left for retirement, I would say that anyone in work below the age of 30 today should expect to be working until 75 to be of pensionable age. That's 45 years left to pay into super.
  • Karma | 06 Sep 2015, 07:59 PM Agree 0
    Steve McClure is on the right track.
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