Bugger saving for retirement - Gen Y want to use their superannuation to buy property
Bugger saving for retirement - Gen Y want to use their superannuation to buy property; 11% of Australians are planning to sell the family home to fund their retirement
Tweet Topic Started: 14 Oct 2014, 09:28 PM (1,074 Views)
BUGGER saving for retirement. Almost half of gen Y first homebuyers want early access to their superannuation so they can get into the property market.
They feel they need a helping hand and would also like their employer to salary sacrifice to help them fund their first home purchase.
New research by financial comparison site Mozo.com.au, asked how first homebuyers would prefer to fund their purchase if given an option.
Just under half said they would diligently save for their first property, almost the same number were prepared to forego their retirement savings to get started.
Mozo director Kirsty Lamont said first home buyers were thinking laterally about how they could get into the market.
“I was surprised that so many first home buyers felt that it was impossible to enter the property market through savings alone,’’ she said.
She said while to many people tapping into your superannuation fund to buy your first home was a radical idea, first home buyers felt they needed an alternative.
“In effect we are talking about using your superannuation to invest in property, it sounds like a good idea but in reality there are risks involved,’’ she said.
Ms Lamont said it was clear gen Y felt it was unattainable to enter the property market by saving alone, and wanted the Government to seriously consider superannuation as the solution.
Other suggestions by first home buyers was to be able to borrow the full purchase price without a deposit.
Some 11% of Australians are planning to sell the family home to fund their retirement, according to the latest MLC Quarterly Australian Wealth Sentiment Survey.
Of the 2,100 participants in the September survey, 8% responded that they are planning to draw down equity in their home, while 40% have no plans to sell their family home.
A further 42% said that they are unsure about whether or not they will use their home to fund their retirement.
Interestingly, men where less inclined to sell the home to fund their retirement, with 45% not willing to take this option, compared to 34% of women.
NAB Wealth group executive Andrew Hagger said that Australians must plan carefully for retirement.
“Australians are looking to rely on the family home to help fund their retirement and cut back spending on their children and home to make their savings last,” said Hagger.
“While the level of concern about financial sufficiency in retirement fell this quarter, half of all Australians still aren’t confident they will have enough to fund their retirement and around one in six are not investing at all.”
I hate the idea. I'm 26 with 2 ip's and did it all on my own. If you don't learn how to buy and manage your property you will loose it all. Smsf give a great return anyhow, they just like the idea of being a home owner and not an investor.
“I was surprised that so many first home buyers felt that it was impossible to enter the property market through savings alone,’’ she said.
So are they apparently - I hear these results that are increasingly cropping up about the place are part of a growing conspiracy to get false data by asking loaded questions so as to distribute fiendish bear porn about the place
All these proposals just create a situation of chasing the horizon - if you get in quick when a new measure is introduced you might be ok but the inevitable result over time is that the price will simply inflate to consume and nullify the affordablity gain made by the measures - but then there is no going back.
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