My primary concern is that it will be inflationary. Any increase in access to money for FHBs in Sydney at the moment will simply inflate prices, then it is of no use at all for the following cohort of FHB. It has only added to their problem.
This.
What we need to do is decentralise, build more hubs and add to supply. More centres of commerce are the answer not pulling demand forward and allowing people to spend their retirement funds. Christ.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
What we need to do is decentralise, build more hubs and add to supply. More centres of commerce are the answer not pulling demand forward and allowing people to spend their retirement funds. Christ.
Exactly - I reckon future ways of working (i.e. working from home) will decentralize as well.I thought prices were higher because incomes were higher?
Why do FHBs now need to access their super to get a foot on the ladder?
Talk about a dumb idea. Demand-side measures aimed at promoting “housing affordability” and home ownership do not work. Despite the massive decline in interest rates and the myriad of subsidies to first home buyers, the home ownership rate has decreased over the past 50 years.
Under Australia’s constipated planning system, Xenophon’s proposed reform would be self-defeating as the extra capacity to pay would soon be capitalised into higher home prices. At the same time, younger Australian’s retirement savings would be compromised for little additional benefit, potentially placing further strain on the Aged Pension.
If Xenophon was truly concerned about home ownership, the best thing he could do is to lobby for an end to policies that distort the housing market and force-up its cost. These include winding back negative gearing and removing planning-related bottlenecks, so that FHBs don’t get out-bid by investors and developers are better able to supply housing at a price that FHBs can afford.
Holding-up Canada as a bastion of housing affordability is also curious.
Believe it or not I actually had a union official in the workplace yesterday, on another issue, mention that he thought it a good idea.
When I pooh poohed the idea they looked at me as another example of management bastardry, and it took me explaining to them about 3 times before they twigged that all we would be doing was loading kids up with more debt, depriving them of their ability to provide for their own pensions (assuming that their super works as intended), and would invariably lead to a further jump in the price of the one major purchase most of them would want to make.
Of course the workplace delegate is a property ‘investor’ but I could see the implications of what I was talking about slowly sinking into the official. It took a lot of effort to get around the ‘Its their money, and they should be able to use it’ type thinking.
I reckon this idea might get a fair bit of traction with the public (just saying, not that I agree with it).
I reckon this idea might get a fair bit of traction with the public (just saying, not that I agree with it).
yep... everyone right now will think they can get in on the idea first and make a killing - and some may do alright.
those that get in late, either too slow, or simply too young - not in financial position to buy when implemented - will effectively have to spend a higher proportion of their life income on their PPOR as a result ( leaving less for everything else ) due to the inevitable price hikes.
than and their super balance will more than likely be lower as a result as they spend the first 10 years paying off their deposit, before can start accumulating super - missing the most important years to gain the power of compound growth.
What we need to do is decentralise, build more hubs and add to supply. More centres of commerce are the answer not pulling demand forward and allowing people to spend their retirement funds. Christ.
Quote:
This policy proposal would have a similar effect to increasing the First Home Owner Grant (FHOG). Although quite popular, that scheme has been an unmitigated disaster that has effectively operated as a wealth redistribution vehicle from younger to older Australians.
From the last article.
This is exactly my view. The money from the young person's super disappears into the hands of the home sellers in increased prices and affordability has deteriorated for the next bunch of FHBs.
It would create a nice fillip for the economy for sure (especially in SA where they are struggling to reboot the housing market) but it will disadvantage the young and is not good for a long term stable housing market.
I am in total agreement with increasing supply being the answer.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
As a FHB I absolutely do not want this to go into effect. This will be just as bad as that horrendous FHB Grant that made prices rise dramatically right after it was implemented.
If they really gave a damn about house affordability they would find a way to make released land cheaper. Its total BS that land that is literally touching the bush costs nearly 200k for a block that is 225sqm.
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