Affordable housing : Alternative to removing Negative gearing

According to the money smart website -
I can access super at 60. Thanks for the heads up. Just gained 5 years!
It seems like once again the financially aware end up miles ahead of those that aren't

 

But who knows... by the time you actually turn 60 they might have changed the age to something like 75....

 

So, your house becomes part of your super. That would mean the idea is to access the equity in it to fund retirement, reverse mortgage or similar?
According to current rules you would not be allowed to live in the house if it was owned by super, so that law would have to be changed, I can see a whole lot of challenges for the law makers with this.

 

Shooting from the hip:

• Banks can and do place restrictions on finance and can skew the market. eg restrict lending in certain postcodes to reduce their own exposure
• Require lower LVRs eg for commercial properties
• Placing limits on how much you can borrow
• Offer different lending products
• Offer different loan terms/length

 

Then again, they might not!

Don't let scare campaigns put you off.
Marg

 

I know! For this guy, 26, it is certain there will be big changes before he can get his hands on super.

Likely changes:

• Increased preservation age, combined with an increase in the state pension age.
• Limits on contributions.
• Limits on balances.
• Limits on withdrawals (stops oldies blowing their super in one year - even though there is no evidence this occurs).
• Major changes in it's taxation.

 

Pays out/down mortgage, world trip, new car. Gets the pension. Pretty typical scenario.

 

That's the narrative. My antidote is that limited retirees are very frugal in spending their super. Do have any evidence otherwise?