News Corp Australia journalists Andrew Potts and Madura McCormack asked SAA to review the government’s latest proposal to access superannuation for housing.

Super Home Buyer Scheme: With the government’s recent announcement regarding superannuation being used for buying houses, News Corp Australia journalists Andrew Potts and Madura McCormack, spoke with our resident superannuation specialist and SAA Financial Adviser Christian Stanger, to get his professional opinion on how the policy may impact everyday Australians. 

SAA comments:

  • The newly announced Coalition policy will allow investors to access up to 40% of their Super balance to help fund a deposit on a residential property
  • The Super Home Buyer Scheme is one step in making home ownership more plausible for low and middle income Australians and demonstrates that government is thinking about young people and those who may never be able to otherwise afford to set foot in the market
  • However, it does not address housing affordability and it may drive prices up, which will further exacerbate the problem
  • Equally, retirement incomes and standards of living in retirement can be severely affected if a withdrawal of $50,000 is made without looking into how this may affect the overall retirement balance
  • Should the government be returned and the legislation passed, investors need to consider their competing goals and objectives and how these may be met utilising the various strategies and benefits available to them
  • They may wish to look at the First Home Super Saver Scheme (another option utilising the superannuation system), as well as other First Home Buyer’s/Builder’s Grants available in their particular states, before making a withdrawal from their Super
  • If this option becomes available and you are considering exercising it, please seek advice from a licensed Financial Adviser to ensure that the option best matches your goals and objectives, and that you are fully aware of how this may affect what you are able to achieve in retirement

There are multiple government schemes available. Speak with our team of Senior Financial Advisers to ensure the best strategy for your personal goals and finance situation.

Read the article here.

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