First home buyers should be able to dip into their superannuation to help buy a property if it is restricted to new housing, according to a leading broker.
John Manciameli, principal of Hunterwood Solutions, told Australian Broker that early access to superannuation to help buy property is a good thing if it goes hand-in-hand with housing supply.
“If it doesn’t address the supply issue then it shouldn’t be done, it is simple economics. If it isn’t restricted to purchasing new homes then it will increase demand while the stock remains the same, which will just create a price spike,” he said.
For most Australians, their house is their greatest asset, says Manciameli, so any initiative to help them get onto the property ladder is going to benefit them in the long run.
“Property is one of the greatest wealth generators; it’s a major pillar in increasing wealth for most Australians.
“Super was designed in the first instance to help Australians avoid the pension and increase their wealth. There is some sense in helping first home buyers to get on the property ladder this way and increasing their wealth.”
However, Manciameli told Australian Broker there will need to be certain regulations enacted.
“There will need to be some caveats around it such as you have to pay it back in 15 years, we can only do it with coordinated efforts from the government – so releasing land – and, obviously, you’re only allowed to buy brand new so it allows supply to come into the equation.”
In an online poll conducted by Australian Broker, 56.6% of brokers said first home buyers should be able to access their superannuation for a home deposit while 32.1% said they should not be allowed. The remaining 11.3% said they were unsure.
