New homebuyer move ‘makes it worse for everyone’

A key proposal to help get Aussies into homes sooner will only serve to making real estate more expensive for everyone a new study has found.

A key proposal to help get Aussies into homes sooner will only serve to making real estate more expensive, a new study has found.

A key proposal to help get Aussies into homes sooner will only serve to making real estate more expensive for everyone, a new study has found.

According to new modelling from the Super Members Council, a government proposal to allow first homebuyers to dip into their superannuation for a home deposit could result in house prices rising by as much as 13 per cent or $86,100.

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The study claims: “Pouring retirement savings into housing would inflame an already-inflated property market – pushing up the major capital city median price by an estimated 9 per cent.”

The modelling was based on a proposed scheme that would allow first homebuyers to withdraw $50,000 from their super.

The study finds that the proposal would make housing more expensive for everyone. Picture: Julian Andrews

The modelling said there would be significant prices hike in all capital cities, with the Sydney median ballooning by almost $80,000, in Melbourne by nearly $70,000, Brisbane by $78,000 and in Perth by a whopping $86,000.

Superannuation and legislation governing its use has become a hot-button issue under the Albanese government.

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Super Members Council CEO Misha Schubert said allowing the $50,000 withdrawal would make home prices more expensive across the country and make the cost of living crisis even worse.

“Using retirement savings for house deposits would just unleash a huge price hike,” Ms Schubert said.

“That would mean higher and longer mortgages for Australians – and would quickly make capital cities even less affordable for new home buyers struggling to get into the market.”

“We all desperately want more Australians to own their own home, but this idea won’t achieve that – it would just make that goal even harder for first home buyers by making house prices even more expensive.”

House prices would rise by 9 per cent across the country, according to the study.

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Ms Schubert said a growing list of policy ideas that encourage people to raid their retirement savings come with long-lasting consequences for everyday Australians and the country.

“Breaking the seal on super leaves people poorer in retirement and costs every Australian taxpayer more from higher age pension costs.”

Analysis showed a 30-year-old couple who withdrew $35,000 each from their super could retire with about $195,000 less in today’s dollars.

However it could be argued, the capital growth they enjoy from owning their home may counter that.

The study says the $50,000 withdrawal will result in house prices rising 7 per cent or $78,200 in Sydney, 9 per cent or $68,900 in Melbourne, 10 per cent or $77,900 in Brisbane, 4 per cent or $28,800 in Adelaid and 13 per cent or $86,100 in Perth.

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Originally published as New homebuyer move ‘makes it worse for everyone’