Market/Finance News Blog: Super suggestion creates conversation

By the resi financial blog team, 17 March 2015

Market/Finance News Blog: Super suggestion creates conversation

First home buyers have been inundated with an avalanche of facts and figures, a lot of which give a pretty gloomy outlook - but conversation has swung back towards the future following the Treasury's 2015 Intergenerational Report. In particular, Treasurer Joe Hockey has suggested that these buyers might be able to dip into their superannuation funds to buy a home, something that has created a bit of a stir among industry bodies. 

Many members of the superannuation industry have warned against allowing young buyers access to these important funds at such an early point in their life. In a March 9 statement, the Association of Superannuation Funds of Australia (ASFA) points out that this could undermine households' ability to save for retirement and could even lead to them sacrificing portions of their income.

"Policies that merely increase the capacity of individuals to pay for housing often have the effect of driving up housing prices, eroding any positive impact on housing affordability," ASFA CEO Ms Pauline Vamos said.

However, the Housing Industry Association (HIA) has thrown its support behind the suggestion. It says that igniting public discussion will help changes how Australians think about superannuation. HIA Chief Executive Industry Policy and Media Relations, Graham Wolfe, said there are a number of benefits for first home buyers, such as reducing the size of their loan and overcoming the funds needed for a deposit. 

"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." he said in a March 10 release. 

Mr Wolfe said there also needs to be robust discussion about providing adequate housing supply to keep up with Australia's growing population, but accessing superannuation could allow more people to get their foot in the housing market - and improve the country's economic growth. 

These comments highlight the importance of keeping up to date with the latest policy development. Whatever the outcome of this debate, get in touch with the loan specialists at resi for a selection of lending options for first time buyers.

Categories: Home Loans