Well, another genius bit of vote buying responsible fiscal management has been announced. First home buyers will be able to withdraw up to $50,000 from their super, not to be confused with the FHSS scheme, where the money had to be voluntarily added to your super fund first.
So the price of housing increases purely because people will instantly have more money to buy with, same as it did with first home buyer scheme, covid building grant scheme etc. On top of that, we will have people taking out huge chunks of what is meant to sustain them in retirement, missing out on a tonne of compounded investment returns.
Do people actually buy this rubbish? So they actually think this is a responsible thing to do?
Link here thanks to Hybroid
@markathome: There's no guarantees either way, but house prices just seem to keep going up and neither government wants to change that. Let's say in a few years I actually start earning $90k and the government's 30-40% is now worth considerably more than at the time it was when I bought, I either now need to significantly increase my repayments, to more than I would have been paying otherwise and for the remainder of the loan, or sell, but all houses cost more and I may not be able to afford to buy now, which is the reason for getting in early in the first place.
Maybe it's just because I'm already about to buy in the next year. If prices are going down I'd prefer to just wait until then to buy. If prices are going up I don't want the risk of co-owning an asset with the government which could leave me stuffed later. Whether interest rates go up now or later it's still going to impact me.