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FBAA chief executive Peter White has cautiously backed a move allowing first home buyers to access their superannuation to gain a foothold on the property ladder.
A new report by the Committee for Economic Development of Australia (CEDA) argues that allowing first home buyers to dip into their super to buy property will ease the impact of housing affordability issues.
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Mr White believes the proposed scheme has some merit so long as it does not have a major impact on retirees having enough liquidity to fund their retirement.
“This is not new – it is happening in New Zealand and Canada – but there are different rules regarding how much is compulsory superannuation and also at what age you can access your super,” he said.
“Getting into the property market is a goal for most young people and to get a helping hand through accessing super would help enormously, but there might be a cost down the track.
“If it came in, I would like to see an age cap where, for instance, it is only applicable to those under the age of 30. Furthermore, the scheme could only be available as a once-in-a-lifetime offer.”
While Mr White acknowledged property as an excellent long-term investment, he is concerned that those who use the scheme may not have enough liquidity to retire.
“Let us do all we can to get young people into their first homes, but as finance brokers we have to help direct potential customers towards suitable property options they can afford, and that means sometimes having to purchase in cheaper areas,” he said.
[Related: FHB plan is 'really bad idea']
