That’s right, this controversial idea has been floated which could greatly help first home buyers gain a foothold in the property market!
Home ownership among 25- to 34-year-olds has dropped to less than half (47 per cent) when compared to two thirds (61 per cent) three decades ago, according to census data.
With the growth in prices over these decades, the Great Australian Dream for many young people was just that.. a dream.
However, Independent South Australian senator Nick Xenophon is advocating for Australia to allow people to dip into their superannuation funds to buy their first home.
Senator Xenophon said in October, 2014 that the idea had merit and deserved “to be looked at”.
“While pollies are busy squabbling about other things, this is an issue that affects people’s lives.
“(Former prime minister) John Howard used to talk about barbecue stoppers, and this is the absolute barbecue stopper — because this is something parents and young people are worried about.”
So does this idea have merit? There have been a few critics of the scheme which say that it would increase demand for housing and, all other things being equal, would actually drive up house prices even more. That is, it would reduce housing affordability, including for first home buyers and the way to actually help first home buyers is to increase supply by removing regulations surrounding planning, land use and infrastructure.