‘Crazy’ or a game-changer? Drawing super to fund a home deposit idea both praised and pilloried

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The reception to Scott Morrison's plan to allow first-home buyers to use superannuation savings to fund a deposit has been a mixed bag, earning both praise and criticism.

The Coalition yesterday unveiled an eleventh-house cash splash with more policy ammunition aimed at tackling housing affordability, announcing the Super Home Buyer Scheme.

Depending on who you ask, the big-ticket plan is either “crazy” and likely to drive up prices, or something that “strikes the right balance” and will let more Aussies buy a home sooner.

What an economist says

Cameron Kusher, director of economic research at PropTrack, said the Super Home Buyer Scheme was sensible, but not without risks.

“Unlike previous proposals to allow buyers to access their super to purchase, in this one you have to pay out upon sale – or you can repay through ownership – what you have taken out plus the percentage increase in the overall price of the property,” Mr Kusher said.

“Make no mistake though, this is all predicated on prices rising. If prices were to fall, you pay back the amount you took out of super minus the percentage decrease in price. If that was large enough, you could wipe out your balance.”

CLICK HERE TO READ THE FULL ARTICLE -Written by Shannon Malloy, News Editor

Posted on Tuesday, 17 May 2022
by Mel Fahey in Latest News

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