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Joe Hockey raises prospect of first home buyers using super to enter property market; Joe Hockey's plan for early access to super appeals to the young and the Greens
Topic Started: 6 Mar 2015, 06:31 PM (10,965 Views)
Lef-tee
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A while ago I pondered what measures would be taken to ensure prices continue to rise once making borrowing cheaper has become exhausted as an option - this would seem like an effective way to achieve it.
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vdmruss
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These measures are a sign that the market is topped out and the debt binge is slowing down. Stevens probably called Hockey and told him he needs to invent a new chess piece quickly to keep the game going.

Super funds will have a problem with this.

There is also the issue that the Gen Y FHB crowd doesn't have much tied up in super. The young are plagued with cash jobs and sham contracts - it's actually the older generation in the public service / corporate environments with generous super payments.

Consider this:

Quote:
 

Young people are now an endangered species in the Australian Public Service, with outsourcing and changing hiring policies to blame, according to a public-sector employment expert.

Only 2.5 per cent of federal public servants are under 25, the latest figures show, and their numbers are shrinking fast - down from 5 per cent in 2007.

Under-25s represent more than 15 per cent of the total Australian workforce and the nation's latest youth unemployment rate is more than 27 per cent.


Link Here

Consider this as well:

Quote:
 

Australian 25-34 year olds had less wealth than people of the same age eight years ago in real terms, despite displaying stronger saving habits than their 2003-04 counterparts.

The report cited increases in home values, as well as rises in government funds for pensions and services for older people, as the changes that have favoured older Australians at the expense of younger workers.

Governments spent $9,400 more on each head of household over 65 in 2010 than they did six years before.


Link Here

Edited by vdmruss, 7 Mar 2015, 01:59 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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Perthite
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macroprudential regulation against housing is more likely while rates are falling.

Perhaps a tool to stop a bust as rates rise.

That is a while off. Years.
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Trollie
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7 Mar 2015, 09:31 AM
Then why are all prices in the US and Euro cheaper than ten years ago ?
But they aren't Ted. It's a Fact.
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Admin
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Super not for first home buyers: ALP

Allowing young people to dip into their superannuation to buy their first home would only push up house prices and undermine retirement savings, Labor says.

Over the weekend Treasurer Joe Hockey said Australia needed to make the super system more flexible, even suggesting it could be used to help first home buyers.

Labor's treasury spokesman Chris Bowen has dismissed the idea as a "thought bubble".

"We need superannuation more than ever before because we are living longer," he told ABC Radio.

"It could have the perverse impact of making housing affordability worse and undermining retirement incomes for people on lower and middle incomes."

Industry groups have also spoken out against the idea, saying it would erode retirement savings.

"We certainly need to have a conversation about super but I think opening up for home loans or anything else is not the way to start," chief of the Australian Institute of Superannuation Trustees, Tom Garcia, told ABC Radio.

Read more: http://www.businessspectator.com.au/news/2015/3/9/financial-services/super-not-first-home-buyers-alp
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If this policy were to get up, it would be the greatest disgrace in Australian history. He was also talking about using your super for education costs and other costs since the new paradigm will be to work for longer. So super just becomes another slush fund to spend what you want on. Can I buy a new boat with my super? Probably.

Australia is in the enviable position that Gen Y are likely to be almost entirely self funded retirees due to the fact we’ll contribute 10% of our income to saving for it for our entire lives, now to reverse this for some short term policy? Government’s in 40 years time will be scratching their heads saying “WHY??”.

This was the first time I’ve ever been compelled to write to a politician. Lets hope Smoking Joe finds some common sense.

Hockey is doing something which is very wise from the top 1% point of view. They want to liquidate the age pension system and any social payments system.

What is easier than killing all savings for the future generations. Doing this for our kids is the way Hokey will make them work to death without any social support or they will be forced to sell their homes to fund their retirement. Both ways is good for the top as this is the only way of reversing the whole system to historical average of working until death and paying mortgages for life, or renting for life for shoe boxes. Once you own your home it is time to reverse mortgage it again – for health care, for pension, for kids education or just for unemployment. This is the future. It is a trap for anyone in the so called middle class, which will disappear during next generation’s life. The normal historical is two opposite classes with no middle class.

In addition, the higher taxes will be used for paying the multinational for keeping them happy and profitable no matter what rubbish or poison they would sell to us.

Hockey’s plan for super to become a a life “transitions” fund (read “crisis” fund) will allow him to make citizens 50/50 offers on previously publicly funded services such as education, retraining and social security payments.

When superannuation means testing is eventually formalised, his offers will be ones the vulnerable citizen cannot refuse. Public services including social safety nets will transformed into user-pays resources and big business will be ushered into a low tax paradise-Jockey’s obsessions.

The purpose of super as a retirement fund will be obliterated and the scheme will become transparently what it has always been, even under Keating- just another privileged tax dodge for the already privileged. For the lower income earners, their super will become an ever depleting holding account to keep them in wage slavery.

“All in all, Joe’s just another brick in the wall”.
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Joe Hockey flags opening up super funds for houses, job training

March 8, 2015 - 8:57AM
Gareth Hutchens

Treasurer Joe Hockey has suggested allowing Australians to repeatedly dip into their super over the course of their lives to pay for things such as job retraining or buying their first homes.

But the radical idea – which represents a significant rethink of the role and nature of the superannuation system – threatens to inflame tensions with the super industry, and has been quickly slammed by Labor and some economists.

Mr Hockey said on Saturday that Australians ought to start thinking seriously about the way in which their super savings can be used in the future, because we are all going to be living for longer and therefore working for longer.

His comments followed the release of the Abbott government's Intergenerational Report on Thursday which showed life expectancy rates jumping dramatically in the future, with average male life expectancy rising to 95.1 years by 2055, and female rates hitting 96.6 years.

Mr Hockey said such large demographic changes meant the rules governing super may have to become more flexible to reflect the reality of an ageing population, and people ought to be allowed to dip into their savings over the course of their lives as they moved in and out of the workforce.

He questioned whether people should be able to use their super savings to pay for job retraining, or to buy their first homes.

"We are prepared to look at a diverse range of proposals to help young Australians buy their first home," Mr Hockey said on Saturday.

But Shadow Treasurer Chris Bowen immediately attacked the suggestion, saying it only laid bare the Coalition's anti-super attitude.

"Another day, another Hockey thought bubble on how best to undermine superannuation," Mr Bowen said.

"His plan would have the likely effect of not only undermining retirement incomes but also driving housing prices up further and making it harder for first home buyers," he said.

John Daley from the Grattan Institute said allowing first-home buyers to access super to pay for their first homes would only help to push up house prices – making it even harder for first-home buyers to afford a home.

Saul Eslake, the chief economist of Bank of America Merrill Lynch, said the best way to help young first home buyers was to increase housing supply because that would drive prices down.

Read more: http://www.canberratimes.com.au/federal-politics/political-news/joe-hockey-flags-opening-up-super-funds-for-houses-job-training-20150307-13xwz1.html
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Foxy
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Zero is coming...

Never get between a fool and a bottle of giggle juice.

Peter

I think this has merit, the only question i would ask is why did we have a super system put in place to start with?




vdmruss
7 Mar 2015, 01:56 PM
These measures are a sign that the market is topped out and the debt binge is slowing down. Stevens probably called Hockey and told him he needs to invent a new chess piece quickly to keep the game going.

Super funds will have a problem with this.

There is also the issue that the Gen Y FHB crowd doesn't have much tied up in super. The young are plagued with cash jobs and sham contracts - it's actually the older generation in the public service / corporate environments with generous super payments.

Consider this:




Link Here

Consider this as well:




Link Here
Super along with fuel prices are a way of fighting inflation, clearly inflation is no longer the enemy.

I think if a person puts their "super" into a new build then no problems.

Peter
Edited by Foxy, 9 Mar 2015, 10:14 AM.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Shadow
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Evil Mouzealot Specufestor

Trollie
6 Mar 2015, 06:34 PM
Fucken sweet, I'm definitely going to hold onto those IP's now. If this happens Sydney will rival hong kong.
And after this move pumps the market up a bit more then the next option would be to reintroduce FHB grants.

And then there's the option to allow 'negative gearing' for PPORs.

Plenty of options available to keep house prices rising. The bears are fighting a losing battle.
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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b_b
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Lef-tee
7 Mar 2015, 10:12 AM
A while ago I pondered what measures would be taken to ensure prices continue to rise once making borrowing cheaper has become exhausted as an option - this would seem like an effective way to achieve it.
I don't think so. Here comes supply....
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