Use 40% of super to buy home

Discussion in 'Property Market Economics' started by marty998, 15th May, 2022.

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  1. doublebrick

    doublebrick Well-Known Member

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    Don’t know if it’s being asked before but do you think this policy (if Libs win and this gets passed) that FH buyers will wait until July 2023 to buy and further depress the current cooling market from now until then? Conversely sellers - if they can wait - may decide to put properties on the market after July 2023, which could even things out?
     
  2. MB18

    MB18 Well-Known Member

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    Well sort of can be explained by this... can you access this money in accumulation phase to do with as you please? No.

    Now, if all we want to do is argue semantics then it can be said it is in you name so therefore it is indeed 'yours' - however most people tend to apply a higher threshold to thier decision making.
    In this context Im more concerned about what I can use rather than what I expect to get in the future.

    Practicality vs sematics will determine how you view sort of.
     
  3. RENI99

    RENI99 Well-Known Member

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    I would if I was a FBH, plus if an investor likely better to sell post 1st July to delay any CGT.
    Both Libs and Labour have policies that should help the FHB purchase a home. Liberal - you borrow from your super (assuming you have it); Labour you borrow from the government. Both you repay back when you sell so that might reduce the upsizing capacity.
     
  4. Piston_Broke

    Piston_Broke Well-Known Member

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    Or rent it out and buy another one. Not sure if there is provision for that yet.

    Well if a person earns $100 less $20 tax = $80.
    If he puts $50 of petrol in his car, how much tax does has he paid on that $100? 20% or more?
    On the way home he buys a $20 bottle of wine. How much tax has he now paid on the $100?

    As for concessions, I 've never been in the highest tax bracket yet. Even when my income was more than Kerry Packer's. I'm happy with an extra 5% to have full control of what I earn now. A bird or money in the hand now is worth more than in 30yrs.
    Eventually taxes will be a lot higher to coerce people into a forced savings scheme and make it harder for thos who can and want to build wealth.
    Unless the UAP policies get implemented. then many will move out in the country and eat lots of peaches.
     
    Last edited: 18th May, 2022
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  5. doublebrick

    doublebrick Well-Known Member

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    Yes I think so too on the timing. Of course there is the broader factor of how much interest rates rise to by 2023, whether it negates the borrowing capacity of FHB as well.
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    One of UAP policy platforms is:

    "... repatriate $1b of Super from Overseas investment..."

    This goes against diversification, missing out on exposure to 90% of the investment market and artificially inflating local asset prices.
     
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  7. Lizzie

    Lizzie Well-Known Member

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  8. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    The people buying property just prior to the government running out of ways to superficially push the price up will be the ones left holding a huge bag of debt. Only now that's cut from their super forever.

    Has a pyramid scheme feel to it
     
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  9. MTR

    MTR Well-Known Member

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    yes
    Ponzi scheme:eek:
     
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Not quite, punters still own the roof over their head ie an asset vs a true Ponzi Scheme where there is no underlying asset and investors are offered unrealistic returns which are funded by new entrants to the scheme.
     
    Last edited: 19th May, 2022
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  11. Redom

    Redom Mortgage Broker Business Plus Member

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    Haha Ponzi scheme is one way to look at it.

    Reality is you want an economy to perform and living standards of Australians to be better off.
    That is immeasurably improved by having people in jobs.

    Hence during Covid the government came in and basically saved the property market. If a lot of people stopped paying rent, and loans were not allowed to be frozen, and there was no fiscal and monetary intervention - you would have seen the greatest collapse in 50+ years in housing values. Instead, we had one of the biggest rises.

    Or in ScoMo's words - 'saved the country!!!' (to be fair, these interventions very much did save the economy).

    Basically no one wants the house of cards to fall down. Everyone will do whatever it takes to keep the music singing.

    The RBA will see that their rate rises will drastically reduce confidence, spending, wealth, etc pretty quickly and wont respond by: LETS DESTROY IT!!!

    Instead, they'll quickly reverse course.

    This level of volatility presents some of the most exciting and interesting opportunities for investors.
     
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  12. Piston_Broke

    Piston_Broke Well-Known Member

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    15% Iron ore tax
    Abolish HECS debts
    Rreduce the taxation rate on a person’s second job by up to 50%,
    Abolish the Fringe Benefits Tax
    20% tax concession incentive to people living more than 200kms from a capital city
    Increase age pension by $180 a fortnight
    Australian veterans’ gold cards

    Best policies by far. Who care about overseas "markets".
    17% compound over the last 20 yrs from Australian RE not enough?
     
  13. Dmash

    Dmash Well-Known Member

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    A roof which gives them shelter to eat their cans of cat food from under.


    Robbing Peter to pay Paul is a terrible idea, fortunately young Australians are aware of the LNP’s horrible economic track record and are aware this does nothing but push prices further out of reach without addressing the underlying issue.
     
  14. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    What returns do we get on our property without new investor entrants to the market?

    The houses and buildings are real and if each house was used as PPOR only, then population increasing would grow the value a lot slower. The booming value of the property market on top of this could be considered a Ponzi scheme, or at least similar.
     
    Last edited: 19th May, 2022
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    We're talking Ponzi scheme punters not entrants to the home ownership ranks.

    Ownership absorbs new as well as existing dwellings reducing the rental pool, FHB are new entrants.
     
  16. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    It is Paul using Paul's money so Paul can get leverage, create generational wealth, get better and safer growth on his retirement fund than the appalling returns from some Industry funds, and so Paul wont get in trouble for hanging pictures on Peter's wall and for his dog ******* on Peter's carpet, or for being late paying ever increasing rent to Peter which is used to outbid those with lower income and less co-lateral for a house.
     
    Last edited: 19th May, 2022
  17. Dmash

    Dmash Well-Known Member

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    So that Paul can eat food from his 3bdr home in the satellite suburbs when he retires
     
  18. Lizzie

    Lizzie Well-Known Member

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    The crux of this argument is that the monies isn't "Paul's" ... it is money paid by Paul's employer and held in trust for Paul's retirement.

    I don't disagree with the policy but think it needs to be very tightly controlled to increase supply (ie, new builds only) - otherwise it simply increases demand and prices will go up by a corresponding amount for the short term
     
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  19. Redom

    Redom Mortgage Broker Business Plus Member

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  20. Piston_Broke

    Piston_Broke Well-Known Member

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    The modellings are a scam just as it was in the 90's.
    Where are all the superannuation multi millionaires from the 90's? Most of GenXers mostly full time employed would have millions in super by now.
    How did the banks and everyone else in the super industry do in the last 30 years?
    [​IMG]
     
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