Use 40% of super to buy home

The x'ers in the 90s who bought property, on the other hand.......

 

The modelling shows that there was no point in buying any real estate or shares in the 90s...
Just give your money to the banks.

Or trust the trust

 

Stoopid me just did a back of the envelope calculation for the incoming gumnut policy to provide funding of 40% of a property's value.

Traditional bank loan:
Say $100k @ 3% PI (Assume that it's fixed for 30 years). Total repayment = $153k (360 pmts of $421/month)

Labor's helping hand:
Say $100k with house prices increasing at 3% pa. Balloon payment =$247k

This equates to an additional burden of $94k on the borrower per $100k borrowed from the bank of the people.

Just for sheeps and giggles I also looked at 5%

It's even worse:
Bank @ 5% = $195k
Gumnut @5% =$432k ($237k extra)

(Most people won't hold out for 30 years, so here's the calc for 10 & 20 years for a 3% interest rate:

10 yrs - $50.5k + balance of loan/$163k

20 yrs - $101k + balance of loan/$265k)


How long will it take before borrowers are up in arms when they realise that their best mate has his hand in their pocket.

So much for the greedy banks. If it came out of Super, they won't lose it to the gumnut & return the windfall to their own Super.