Home Super Saver provides deposit
With housing affordability at a record low, the Housing Industry Association (HIA) argues that first home buyers need measures that provide tangible rewards for saving.
“Rewarding aspiring first home buyers saving for a deposit is a practical way to reduce reliance on debt and assist more young Australians into their own home,” HIA’s Managing Director, Dr Ron Silberberg said.
HIA has called for the establishment of a Home Super Saver that would reward aspiring home owners by allowing them to salary sacrifice for a home deposit. Under the scheme wage earners would be able to use superannuation accounts to make additional voluntary contributions that can then be used for a deposit on a home.
Utilising a Home Super Saver a household with a combined income of $100,000 saving an additional 6 per cent in super would, after five years, have an additional $32,800 for a deposit. Savings of this amount would provide for an 11 per cent deposit for the national median first home price. This would increase to 12 per cent with the addition of the First Home Owners Grant. A breakdown by state is provided in Attachment 1.
“The financial infrastructure exists to make this happen and a number of superannuation funds would jump at the chance to provide a differentiated product that would have real appeal especially to young Australians,” said Dr Silberberg.
Surveys show that young Australians rate purchasing their own home as a top priority following leaving school or finishing further studies.
“This is a measure that rewards saving by linking superannuation and home ownership. There is no better way to achieve financial security then by owning your own home at retirement and having a healthy level of savings in a well performing superannuation account,” said Dr Silberberg.
Other measures promoted by the HIA to assist in restoring housing affordability include an increased investment by all levels of government in infrastructure that supports residential development and practical incentives for private and institutional investors to increase the supply of affordable rental housing.