Another week, another interesting perspective on ways to assist people into the Real Estate market.
Speculation is mounting over the impending ‘discussion’ on the ability for ‘young people’ to use their superannuation to help purchase their first home.
A few issues that arise, in my opinion, are;
Finding ways to stimulate the already buoyant Real Estate market are not going to assist people in the long, or short, term in realising an investment in property. Much like the ‘tax’ on foreign investors, the opportunity to assist ‘first home buyers’ may in fact increase competition or, at least, upward pressure on pricing in the property marketplace – on both both new, and old builds.
Further to this, the superannuation usage for property purchasing may assist ‘young’ people and is intended, in my opinion, to be a careful and intentionally caring way of saying ‘we will help you buy property, regardless of your struggle or ability to save money’ but what it is doing, ultimately, is rewarding the people with higher paying jobs, which result in higher paying super and eventually leading to uproar about Government assisting ‘wealthy’ people.
Therefore, I see that, if it were implemented, it would just create a new level of playing field, not extinguish the old one, which isn’t necessarily unfair – based on ones ability to save, scrimp, pay mortgages etc.
I also see an issue with future-proofing young people against unemployment, debt and pension stress – but that is too political.
The good to come from the last few weeks is, that there is political conversation regarding property, the bad, possibly, is politicians getting involved in the personal business, and lives of people on a day-to-day level.
Thomas Merriman.
Thomas Merriman 