A word from Philip Webb

A word from Philip Webb

The Coalition proposed this week a policy that would permit first home buyers to access their superannuation to purchase property. While the proposed plan will allow people to buy property now, some experts warn it could cause a housing price increase. However, there is very little doubt in my mind it will help people achieve home ownership at a far earlier time and therefore be much better off in retirement.

The policy would allow first home buyers to withdraw up to 40 per cent or $50,000 of their superannuation, which for most individuals who have been working for up to 10 years, is the entire sum of their superannuation. While some buyers might be tempted by this option as a way to enter the property market, I think some may fear being worse off in retirement and the potential lack of financial security later in life.

However, the proposed Super Home Buyer Scheme outlines when the property sells, the buyer must return the invested amount back into their super savings. This clause is designed to act as a safety net for buyers who choose to utilise the scheme.

While the proposed scheme is designed to help first home buyers enter the property market, the long-term welfare of people must be taken into account. For anyone looking into using their super to purchase property, as always, ensure you are thoroughly researched and seek advice from a financial adviser before making any decisions.

If you are a first home buyer who is struggling to enter the property market, give our office a call today!