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A major proposal to get Australians into homes faster will only make property more expensive, new research has found.
A major proposal to get Australians into homes faster will only make property more expensive for everyone, new research has found.
A government proposal to allow first home buyers to use their retirement savings as a down payment on a home could increase house prices by up to 13 per cent, or $86,100, according to new modeling from the Council of Super Members. be.
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The study claims that “spending retirement savings on housing would stimulate an already bloated property market, increasing median prices in major capital cities by an estimated 9 percent.”
The modeling is based on a proposed scheme that would allow first home buyers to withdraw $50,000 from their super.
The study found that the proposal would make housing more affordable for everyone.Photo: Julian Andrews
The model predicts significant price increases in all capital cities, with Sydney's median price rising by almost $80,000, Melbourne by almost $70,000, Brisbane by $78,000 and Perth by a whopping $86,000. It is expected.
Superannuation and the laws governing its use have been a high-profile issue under the Albanon government.
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Mischa Schubert, CEO of the SuperMembers Council, said allowing $50,000 withdrawals would cause home prices across the country to soar and worsen the cost of living crisis.
“If you use your retirement savings to pay for a home deposit, you're just going to cause a huge increase in prices,” Schubert said.
“It will mean higher and longer mortgages for Australians, and the capital will quickly become even more affordable for new home buyers struggling to break into the market.”
“We all desperately want more Australians to own their own home, but this idea won't achieve that. It will make house prices even more expensive and make that goal more difficult for first home buyers It just becomes more difficult.”
According to the study, home prices are expected to rise by 9% nationwide.
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Mr Schubert said there was a growing list of policy proposals to encourage people to tap into their retirement savings, which would have long-term implications for Australians and the country.
“Unlocking super will make people even poorer in their later years and cost all Australian taxpayers more in older age pension costs.”
The analysis found that a 30-year-old couple who each took out $35,000 from their super could retire with about $195,000 less in today's dollars.
Whatever the argument may be, the increased equity they enjoy by owning a home may negate it.
The study found that a $50,000 withdrawal could reduce house prices by 7% or $78,200 in Sydney, 9% or $68,900 in Melbourne, 10% or $77,900 in Brisbane, and 4% or $77,900 in Adelaide. It will cost $28,800, an increase of 13 per cent or $86,100 in Adelaide. Perth.
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