Liberal Party’s Super Home Buyer Scheme vs Labour Housing Policy for the Young
Liberal Party announces a new Super Home Buyer Scheme to help first-time home buyers unlock their super to get into the property market more quickly. On the other hand, Labor’s Help to Buy housing policy will assist those people on a lower income who are not able to buy a house.
“People should save for retirement in super but if they can get more benefits now from their own money, that’s much better. Their money will grow over time and build wealth.”
Super For Housing vs Government as a Co-Owner
Under the Super Home Buyer Scheme, buying a home for high-income, young people is now easier. They can invest up to 40% of their superannuation or a maximum of $50,000 to help with their home purchase. In case that the property is put on sale, the money and proportionate capital gain should be returned to the homebuyer’s superannuation fund. Note that only first-time homebuyers can access their super fund for housing under the scheme.
On the other hand, the Labor’s program for housing affordability can help up to 10,000 low and middle-income first homebuyers. They can enter the housing market each year by taking an equity interest of up to 40% in the property they buy. The government will reimburse its money and its share of capital gain once the house is sold.
This attempt attracts individuals who are not able to enter the housing market. The approach has been tested and looking at the lower end of the housing market and the people who are struggling to get into property. This is a good thing to help people buy a home that they wouldn’t have otherwise. Nevertheless, rather than co-own with the government, people want to get into property and own it themselves.
Who Can Access Their Super For Home Buying?
Housing has become less and less affordable for Australians. Only first home buyers can access their super for housing under the policy. Individuals who can use their super should have deposited a 5% payment for the home without accessing their super.
The house should be occupied by the owner and must live there for at least 12 months. Couples can both access the Super Home Buyer scheme, and if one partner is not eligible to apply, it does not prevent his or her partner from accessing it.
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About Lan Nguyen
Lan is the Founder and Chief Strategist at Success Accounting Group, Melbourne based CA firm. In a matter of short 8 years she has built up a reputable Chartered accounting firm with 3 offices and a team of 6 professional accountants and support team members. Her mission is to provide Innovative and Strategic Financial advice to help her customers make smarter financial decisions today for a brighter future.
Success Accounting Group is for established business owners who would like help to grow a sustained business. As a business owner you understand what drives your business success with our accounting team taking care of the rest.
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