Agents welcome suggestion to spend super on first home
OWNING a home is the ultimate dream for most Aussies, but in this day and age, saving money for a deposit can seem like an uphill battle.
Federal Treasurer Joe Hockey last week proposed the idea of allowing first-home owners access to superannuation funds to help turn that dream into a reality.
Ray White Gladstone director John Fieldus says giving first-home buyers access to their superannuation would be the opportunity of a lifetime.
"I'm a big believer in bricks and mortar and the property market will go up incrementally more than super," he said.
"They should be able to use their super in the early years to help them get into the market."
And with market conditions in Gladstone looking good for buyers, potential first-home owners would benefit if they could get in now.
"The market is about to improve and there will be a lot of young people still trying to save for a deposit," he said.
"I back this idea. They have the rest of their life to build up their superannuation."
Should first home buyers be able to use their super for a deposit?
This poll ended on 13 April 2015.
Yes, they need all the help they can get
No, superannuation is for retirement
Yes, but only if there's a limit set on it
No, the money will do better in super over time
This is not a scientific poll. The results reflect only the opinions of those who chose to participate.
Ron Jeppesen, the owner of Mortgage Choice Bundaberg, agreed the government should be more flexible with the superannuation.
"I think it is a great idea. If it is money that can be accessed and then paid back down the track, it would work quite well," he said.
Mr Jeppesen said with acquiring a home, first-home buyers definitely did not have it easy.
"It is so hard for young people to save for a deposit, especially for those who are already renting," he said.
Access to super would make purchase easier
MICHELLE Beveridge is buying her first home. She says if first-home buyers were able to dive into their superannuation for the deposit, it could make life a lot easier.
"Having to pay rent, which is practically someone else's mortgage, and saving for your deposit is pretty hard," the 24-year-old said.
"If your super is going towards a home it's a good investment and you can start paying your mortgage off instead of rent."
She said the Gladstone property market was a good market to buy into at the moment, but young people were being held back.
"We are lucky that my parents have gone as guarantors."
Opinion: Superannuation is for retirement
THE idea behind superannuation is that it becomes a source of funds when you retire.
If you start chipping into it - say $30,000 for a deposit on your first home - when you retire that just won't be there.
It's more prevalent now than it was in the past. Relationships break down, you sell the house and that $30,000 will be lost.
There are arguments for and against it because it is hard for first-home buyers to save for their deposit, but it is also hard for people buying their second homes after their relationships have broken down and are left with nothing.
Either way, I think $30,000 in your superannuation fund turns into a lot more with compounding interest over the time of your working life.
- Financial broker Greg Hill