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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 (16,487 Views)
herbie
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vdmruss
31 Jul 2014, 05:03 PM
This is the last rabbit in the hat.
Not quite Vdmruss - One of the bulls I used to squabble with elsewhere inclined to the view they'd allow neg gearing on the home before seeing house prices go under.

But yes, they do seem to be running short of options for making major long term structural changes to the market.

PS: Does anyone out there know of any other country in the world that is so totally committed/dedicated to making/keeping its housing prices high?
Edited by herbie, 31 Jul 2014, 05:30 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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vdmruss
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Robert
30 Jul 2014, 02:41 PM
Unaffordable property is at the crux of most of our problems here in Oz.

Only the fucking parasites benefit from unaffordable housing and we have let this game go on for way too long. Far too late for an orderly wind down.

Which is why recessions are a very natural part of the business cycle – the pause that refreshes!

Us Australians without a natural clearing event for coming up to 23 years means we live in la de da fairy land where reality has been replaced by our own version of the great ‘Rent-Seekers’ paradise.

Too late for a non-seismic re-adjustment we have allowed this thing to distort practically everything here in Australia.

So screw all the vested interests (they have been screwing us all for way too long) – let us have a good old fashioned rollicking recession. There is really no alternative left.

I have been around a long time and have lived through my fill of recessions – still fine after all that and guess what – they taught me quite a few lessons to boot.

[strong]About time we all got some new life skills – how to behave and act when the shit hits the fan.[/strong]

Coming to a town near you soon.
I am not looking forward to a recession in Australia. It would be like bleeding to death from a paper-cut.

I think we are in a recession now based on real time business conditions. I don't know what kind of garbage ABS/RBA puts out, there is a contraction occurring in the economy - and the wheels have been in motion for at least 3 years. I see nothing but companies shutting down left and right, cutting costs and laying off staff.

Worst case scenario. Buy a cheap block of land in central AU, live in a tent and eat Witchetty grubs.

Quote:
 

The Government's tough new rules for job seekers have come at a difficult time for university graduates looking to enter the workforce. A yearly survey by one of Australia's biggest recruitment agencies released today has found the employment rate for new graduates has sunk to a 20-year low. But the report says longer term job prospects for people with tertiary qualifications remains strong.


http://www.abc.net.au/news/2014-07-30/employment-among-recent-university-graduates-hits/5635490?section=business
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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peter fraser
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vdmruss
31 Jul 2014, 05:03 PM
This is the last rabbit in the hat.

On the other hand if they do allow this, there will be no pension fund for the government to raid. :dry:
Last rabbit - hardly. Try these rabbits:-

1. Increase FHOG and allow it on existing homes.
2. Pay a grant on all new homes bought including investors purchases.
3. Reduce Stamp duty
4. Allow all buyers to claim the interest off their tax
5. Increase child minding allowances.
6. Increase the GST
7. Ramp up immigration.
8. Create new jobs for immigrants with lots of money spent on infrastructure
9. Reduce interest rates.
10. APRA can allow 100% home loans again


If you like I can come up with more ideas.

Any expressed market opinion is my own and is not to be taken as financial advice
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vdmruss
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peter fraser
31 Jul 2014, 07:50 PM
Last rabbit - hardly. Try these rabbits:-

1. Increase FHOG and allow it on existing homes.
2. Pay a grant on all new homes bought including investors purchases.
3. Reduce Stamp duty
4. Allow all buyers to claim the interest off their tax
5. Increase child minding allowances.
6. Increase the GST
7. Ramp up immigration.
8. Create new jobs for immigrants with lots of money spent on infrastructure
9. Reduce interest rates.
10. APRA can allow 100% home loans again


If you like I can come up with more ideas.
1. Increase FHOG and allow it on existing homes. Where will the cash come from? More taken out of my pocket?
2. Pay a grant on all new homes bought including investors purchases. Where will the cash come from? Again, more taken out of my pocket?
3. Reduce Stamp duty I doubt our government will forgo a tax collection.
4. Allow all buyers to claim the interest off their tax This may actually come to life.
5. Increase child minding allowances. I thought they were implementing a plan to bring in child carers from Philippines on a FIFO basis?
6. Increase the GST Recession.
7. Ramp up immigration. This may occur.
8. Create new jobs for immigrants with lots of money spent on infrastructure. I wouldn't mind if our government invested more into infrastructure and less into awareness and social programs.
9. Reduce interest rates. This may still occur.
10. APRA can allow 100% home loans again. +Banks should offer these IO.

They should implement all your points at once and see how it goes. :lol

Edited by vdmruss, 31 Jul 2014, 08:24 PM.
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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Dave
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vdmruss
31 Jul 2014, 08:23 PM
3. Reduce Stamp duty I doubt our government will forgo a tax collection.
4. Allow all buyers to claim the interest off their tax This may actually come to life.
Tax collection is foregone in both cases, but first option may create net increase in tax collection if it results in more transactions.
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Guest
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I can’t see that trying to lower IR’s while having a super-open capital account is going to help us much.

We’re running a massive CAD. How important this becomes short term (like the next five years!!!) depends a lot on China.

If China continues to boom we might handle it. If it doesn’t we won’t. What we are doing when we reduce rates, in this economy as it is now structured, is stimulating consumption ergo raising imports and increasing the CAD. This we require even more capital (debt and asset sales) to fill the hole.

We will have already reached our limits on debt. The balance between more production as a result of a lower dollar and more consumption is crucial. Is it possible in Australia to stimulate production to the extent required in the time available.

Factories are not going to magically sprout across the nation. Even worse, if you are stimulating with lower IR’s here to smash savings, where do the funds come from to import the machinery etc to build them?

In the face of the thirty (60?) year delusion and resultant distortion the reforms necessary to achieve a productive economy nigh on impossible to achieve, Further, at the A$=USD.50 the hit to living standards will be massive. Remember the price of ALL tradables, including food, will double. In the case of food the price pressure will be enormous as Chinese prosperity ramps up. Nobody is worried about it and everyone ignores the effect of Chinese increasing prosperity. It is REAL!

The rentiers of all kinds, capital, labour and government itself, will be hard at work to keep their ill-gotten gains no matter what the cost to everyone else.

It looks like an inflationary high unemployment hell.
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Jimbo
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Sydneyite
28 Jul 2014, 07:51 PM
I agree it won't get up, but there is actually a strong economic argument for this. Why should people have to take on more debt earlier in life, and pay interest on it etc, when they have savings available in their super? It's no co-incidence I think that Australia's private superannuation pool has grown almost in lock-step with our aggregate household/mortgage debt levels.
If you think about it, the idea is insane.
Price at the starter level is decided by available funding. Increase available funding and you increase prices. The net result will be a transfer of super into the hands of developers or other sellers with no cost saving to the FHO.
Also, using super for housing is an "all eggs in one basket" investment strategy.
To reduce prices, simply remove the CGT discount and quarantine some or all NG. Also get the FIRB to do their job.



Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Dr Watson
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Jimbo
1 Aug 2014, 02:07 PM
To reduce prices, simply remove the CGT discount and quarantine some or all NG. Also get the FIRB to do their job.


To reduce prices, decrease immigration (easy) or build more centres of commerce. You people who reckon supply and demand can be glossed over and that the answer lies in fucking around with the Tax Act are kidding yourselves.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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Admin
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Quote:
 
Mortgage broker network joins the call for super access for first home buyers

Jessie Richardson | 1 August 2014

A mortgage broker network claims that allowing first home buyers to dip into their superannuation to make a deposit on their nome could benefit the housing finance and superannuation markets.

A number of industry bodies have supported Independent Senator Nick Xenophon's proposal to change restrictions surrounding superannuation access for first home buyers, including the Housing Institute of Australia (HIA).

According to 1300HomeLoan managing director John Kolenda, Xenophon's propsal could have a positive impact on the housing market but would require restrictions.

“Anything that can help first home buyers get into the market to buy their first home is a good thing,” said Kolenda.

“First home buyers have had a number of factors stacked against them in recent years and they are the least active sector of the home finance market despite record low interest rates.

“Many have difficulty saving for the necessary deposit and they haven’t been helped by rising real estate prices and first home owner grants restricted to new houses.

“The plan from Senator Xenophon deserves consideration and they can set parameters around it such as a maximum withdrawal from a super fund of $25,000.

“If first time buyers are allowed to access their super for a home loan deposit you might actually see people contributing more money into their fund, which will be beneficial to the superannuation sector.

Kolenda said first home buyers should also consider other options, like assistance from their parents.

“First time buyers who have minimal savings should realise they can get help from their parents or other family members to help secure a deposit,” he said.

‘Under the family equity guarantor’s support policy, parents or another immediate family member can help a first home buyer purchase a property.”

Xenophon's proposal is similar to schemes already in place in Canada, New Zealand and Singapore.

While 1300HomeLoans, the HIA and the Real Estate Institute of Australia have shown support for proposed changes to super withdrawal regulations, other industry experts have highlighted drawbacks to the scheme, such as increasing house prices and depressed superannuation earnings.

Read more: http://www.propertyobserver.com.au/finding/residential-investment/1st-home-buyer/34025-mortgage-broker-network-joins-the-call-for-super-access-for-first-home-buyers.html
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Jimbo
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Dr Watson
1 Aug 2014, 02:17 PM
To reduce prices, decrease immigration (easy) or build more centres of commerce. You people who reckon supply and demand can be glossed over and that the answer lies in fucking around with the Tax Act are kidding yourselves.
I speak for Perth only, but if we have supply problems, why are there not thousands of families walking the streets unable to find a roof to put over their heads?
Why are rental vacancy rates rising? In a tight supply market, available rentals would be like hens teeth.
Most renters don't want to rent, they want their own place but when an affordable property comes on the market, some FIFO would be property magnate snaps it up and adds it to his portfolio and all with a big fat subsidy from the taxpayer.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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