Letting first homebuyers access their super – is it a good idea?

house keyShould first homebuyers have access to their super funds?

That’s the question that is being asked around the country after the Prime Minister and Treasurer proposed the idea a couple of weeks ago as a possible solution to Australia’s growing housing affordability crisis.

But many have been questioning whether or not this is the best solution to the problem, and whether Australians could end up worse off from such a scheme.

A big argument against the proposal is the possibility of it putting further pressure on the country’s aged care budget. Superannuation savings are meant for retirement and if people don’t have those funds available when they really need them then it could put a huge stress on the economy, and force people to work a lot longer.

This isn’t the first time that there has been a debate about accessing super for first homebuyers. The Howard Government put the topic up for debate, however it was decided that superannuation funds were best kept as retirement savings.

Another issue with the scheme is that it likely won’t solve the housing problem. Giving first homeowners the opportunity to draw on their super will likely just further inflate property prices, defeating the purpose of the scheme in the first place.

There is, however, no doubt that there is a housing affordability problem in Australia, but the major issue is supply versus demand. If more housing could be made available for young Australians then it might help ease the pressure on property prices.

At least discussions have started on how to help alleviate the housing affordability issue.

At Arbee Real Estate we’re interested to hear what locals think about the proposed scheme? Do you support it?