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First home buyers could soon use superannuation to buy property; Nick Xenophon will introduce legislative changes in the spring session of parliament
Topic Started: 28 Jul 2014, 05:33 PM (16,480 Views)
doubleview
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Rational Radical
19 Aug 2014, 12:37 PM
Hi guys,

I just signed up to APF, and so missed this discussion until now. I'm one of many young Australians currently locked out of home ownership by record high prices. Everyone here is obviously aware of what a terrible (and questionably motivated) idea this is, and I don't have a lot to add to the expert analysis of many of the folks here and on the blogo-sphere who's writing I rely on to inform my understanding of these issues.

However, given that this will inevitably spark another discussion about housing affordability when the idea hits parliament, I've started a small petition to try and steer Nick towards advocacy for some reforms that might actually do something - such as quarantining of negative gearing or limiting to new builds, which seems to keep floating around in the back rooms of power. If we can convince him to publicly get on board such a move, we could possibly make a positive change for the first time in decades (ever?).

So I ask humbly for your support of my petition to have Nick Xenophon scrap this plan, and force him to address the real causes of and solutions for unaffordable housing. It's an important cause that affects at least 4.5 million voters (particularly young Australians), and one that has for too long been a vexed issue thanks to conflicted and gutless politicians. My (admittedly lofty) aim is to generate some media exposure of the truth about housing affordability and the dubious proposal being put forward by Nick Xenophon. I wand to send a strong message that young people will not be taken for fools on housing yet again.

Link to the Petition:
http://goo.gl/KMRMGK

And here are the original posts if you want to share, retweet or like them. Or tweet something to #PetitionNickXenophon.

http://twitter.com/RationalRadicaI/status/498981159125020674
http://www.facebook.com/rationalradicaloz/posts/635566369883967

My sincere thanks in advance, and if you sign, please also pass onto as many of your friends and network as possible - and millions of young Australians will be grateful if we can pull something off.

Sincerely,
Matt Ellis.
Wake the fuck up, these fuckers are in it only for themselves !
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vdmruss
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Trojan
21 Aug 2014, 08:06 PM
Its a sleight of hand.
The FHOG and allowing FHB to use super is just to provide the FHB with a comparative advantage.
Exhibit A: watch the FHB fall over themselves to outbid other buyers when they doubled and tripled the grant.
Buyers aren't interested in houses being cheaper nationwide - they are only interested in getting ahead themselves. And politicians know that very well.
And yes I agree, giving buyers more money will have an inflationary effect on house prices.
It's a huge risk to have FHB's blow the emergency kitty on housing.

If they were to allow this, a lot of people would take up the opportunity to buy.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours.
Those who can, do. Those who can't, teach.
"It's an itchy blanket, it's designed to remind you how lucky you are"
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Bardon
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vdmruss
21 Aug 2014, 08:26 PM
It's a huge risk to have FHB's blow the emergency kitty on housing.

If they were to allow this, a lot of people would take up the opportunity to buy.
Fingers crossed that Nicks initiative gets through the Senate.
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canuckbob69
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Accessing your superannuation may be the only way some first time buyers can get their own home....Superannuation shouldn't be allowed to be used to buy investment property or second/third homes....but first home buyers could afford their own home if they could access even up to a certain amount, ie $30K or $50K. could mean the difference between owning a home at retirment and having to but on government rent assistance which costs the taxpayers again.
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Dr Watson
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Edited by Dr Watson, 7 Oct 2014, 11:30 AM.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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Dr Watson
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Edited by Dr Watson, 8 Oct 2014, 07:25 AM.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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Sydneyite
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Dr Watson
8 Oct 2014, 07:24 AM
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Interesting chart! If accurate, I'm way above the median super fund balance for my age group then, and also over-all on both an individual and household basis. :oo:

I would also note that given that the old age pension is in effect a government underwritten and funded super-fund, equivelant to a personal super fund balance of about $250k-$300k per person, that there are not that many people over the age of 55 who would be able to be fully self-funded retirees - ie with no government support at all.

I guess it will be interesting to see that chart in 10 years time when the current 45-54 cohort moves into the next group, and note what the median balance for the 55-64 group (and the new 45-54s) will be then. Both should be a lot higher than the current mobs, given the higher median balance that the 45-54 year olds have today already, adn the fact that both groups have had compulsory super for all (or the majority) of their working lives.
Edited by Sydneyite, 8 Oct 2014, 09:56 AM.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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CSI
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Quote:
 
Fingers crossed that Nicks initiative gets through the Senate.

So I take it you think this is a good idea.
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Bardon
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CSI
8 Oct 2014, 04:20 PM

So I take it you think this is a good idea.
Once you get to know me you will see that I am consistently in favour of any initiative that increases the economic rent.
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Admin
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Quote:
 
How this super idea could move you out of Struggle St

October 17, 2014 11:26AM

IF YOU’RE struggling to save up for your first home, you’re not alone.

Home ownership among 25- to 34-year-olds has dropped to less than half (47 per cent) when compared to two thirds (61 per cent) three decades ago, according to census data.

With prices skyrocketing and limited housing stock to drive prices down, the prospect of home ownership is slipping out of reach for many younger Australians.

But a controversial idea has been floated that could restore our faith in the Great Australian Dream.

Independent South Australian senator Nick Xenophon is advocating for Australia to allow people to dip into their superannuation funds to buy their first home.

Senator Xenophon told news.com.au that the idea had merit and deserved “to be looked at”.

“I hope to trigger a debate about housing affordability,” he said.

“While pollies are busy squabbling about other things, this is an issue that affects people’s lives.

“(Former prime minister) John Howard used to talk about barbecue stoppers, and this is the absolute barbecue stopper — because this is something parents and young people are worried about.”

Schemes that allow people to dip into their superannuation to pay for their first home have been implemented in Canada, Singapore and New Zealand. Source: Supplied

Senator Xenophon wants Australia to explore adopting a scheme similar to Canada’s Home Buyers’ Plan, which allows residents to withdraw funds up to $25,000 in a year from their retirement savings to buy or build a home.

The Canadian scheme has been operating for 22 years with about one eighth of first home buyers aged 25 to 44 participating.

Generally, withdrawals have to be paid back into the retirement funds within 15 years.

Similar schemes have also been successful in Singapore and New Zealand.

Queensland Nationals Senator Matthew Canavan has thrown his support behind the concept.

“The hardest thing you have to do in this nation is save up for a deposit. (Superannuation) is your money and it’s meant to be for your future, but you can’t save it for your own home,” he told news.com.au.

“Home ownership is falling for the first time since the war.

“But if you own your own home, you are a much, much lower drain on the public purse because you don’t have to pay rent.”

THE PROSPECTIVE FIRST HOME BUYER

Melbourne builder James Durance, 22, said he and his girlfriend were struggling to save up for a deposit to buy their first home and this type of scheme would help them greatly.

“I’m all for it. Sign me up,” he laughed.

He said the beauty of the scheme was that the money withdrawn from your super would be “tied up into an asset”.

“I can only see it as a benefit. Unlike cars or particularly anything you own, it’s that one thing that’s always going to be of value, so it can only be an asset. Put it this way, you can’t drive a house out of the showroom,” he said.

Mr Durance doubted that the scheme would artificially inflate house prices, because it would only be open to Aussie first home buyers.

Read more: http://www.news.com.au/finance/superannuation/how-this-super-idea-could-move-you-out-of-struggle-st/story-e6frfmdi-1227093458723
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