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Franchise head backs calls to open up super to first home buyers

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Australian Broker | 02 Sep 2015, 07:52 AM Agree 0
The head of a major mortgage franchise has backed recommendations to allow first home buyers to access their superannuation to purchase property
  • Prisco Minichiello | 02 Sep 2015, 08:41 AM Agree 0
    Seems a silly thing to do, putting all the eggs in the housing market basket. what if we have a housing collapse, Ah well back to eating baked beans and dog food for future retirees
  • Paul | 02 Sep 2015, 08:46 AM Agree 0
    To enable buyers to access super will only increase the problems in the market.
    Better would be the removal of stamp duty, and regional LVR restrictions on Syd and Melbourne investor purchases rather than blanket national restrictions as imposed by APRA. Using super will only causes prices to be bidded up further as seen when the FHOG was increased. Comparisons to the SMSF regime for property and lending are distorted. SMSF property purchases come with numerous restrictions. Also we have yet to see what happens when many of those purchasers reach drawdown stage. Many believe this is a timebomb in the making.
  • shawn | 02 Sep 2015, 08:47 AM Agree 0
    So who's going to fund their retirement? Oh yeh the tax payer. There are plenty of affordable houses within 20kS of the city with good infrastructure, under $500K. Young people want it all and don't save but spend their money going overseas or on flash cars. It's a rediculous notion to allow young people to have acces to their super.
  • GC | 02 Sep 2015, 09:22 AM Agree 0
    This is an absurd comment and simply jumping on the bandwagon to try and be popular. How many young people have sufficient funds in their Superannuation to be able to draw down for a deposit? I dare say very few. Most young couples can afford the repayments. If they cant afford the property and repayments then they simply look in the cheaper areas until they can get into the more expensive suburbs.

    The prime issue for most couples is the entry costs. I say eliminate LMI as its absolute BS. You can insure a 600K property against fire for approximately $1,200 but it costs in excess of $19,000 + STAMP DUTY to insure a $600K loan based on a 90% LVR and it doesn't even protect the one paying the fee. The risk for the lender reduces as values increase but the customer still gets screwed . The LMI's state its a "good fee because it helps you get on the property ladder sooner". What a load of garbage. And yet LMI can magically be waived for "Specialist" groups because they earn higher incomes.
    As far as I am concerned this is legal theft and the Govt dont have the guts to do anything about it.

    The other issue which is the biggest impost is the absurd property Stamp Duty cost. If the Govt was really serious they would look at these two issues first instead of coming up with crap like accessing Superannuation. It's unfortunate that parents now often need to come to the party to assist their children in what should be a relatively simple matter. All of this is because of greed by the banks, LMI's and the complete ineptitude of the government - and I mean both parties.
  • Papery | 02 Sep 2015, 10:58 AM Agree 0
  • Art | 03 Sep 2015, 12:13 PM Agree 0
    Why is everyone talking about 'younger' people? What age is 'younger" age group? My husband and I are in our mid 40's and we can't save up the 5% to 20 % deposit required as every time we do prices in Sydney go up! Empty land in the growth corridors sells like hot cakes through every illusive 'priority numbers' or auctions we miss out on due to affordability. We don't want to go into retirement (in some 20 years) without a house, and at this point it is getting even harder getting a 25 year loan for us. So please stop talking about 'younger' generation who don't have much in their super savings, we do and it would help us enormously to have that available for our first home. And due to our already affected health we can not afford the travel time of more then 3 hours per day (1 1/2 h one way) to move outside of the 'metro' area as the only jobs that pay decent wages for what we do are in CBD or North Shore.
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