Would you use the new First Home Super Saver Scheme?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Shaneo78, 17th Jun, 2017.

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Would you use the new Super Saver Scheme for your first home?

  1. Yes

  2. No

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  1. Shaneo78

    Shaneo78 Well-Known Member

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    31st Jul, 2016
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    Location:
    Melbourne
    Looking for a discussion around the new First Home Super Saver Scheme.

    Would you use it to help you save for a first home?

    The scheme allows you to save for a deposit within your superannuation and to be taxed at 15% rather than your tax rate. If you contribute into the fund, you can save a few thousand dollars to be added to your deposit. You can then withdraw the funds (Plus the amount it has 'grown') with a tax concession of 30 points below your tax rate.

    Pros:
    • Able to save money on tax to put towards your first home
    • Grow your money at a higher rate then a bank account
    Cons:
    • You can only access the money to purchase your first home once it is contributed
    • If you have an investment property, your funds may collect a similar/higher rate in an offset account
    • The portfolio within your super account is subject to market conditions. If you wanted to buy your house in 3 years time and the market was down significantly, you could potentially take money away from your super savings and reduce the amount you have access to later in life.

    Thoughts?
     
  2. PerthPadawan

    PerthPadawan Well-Known Member

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    Your cons are all unrelated to the scheme, and more cons on buying a property in general.

    1. You need to use it to get the benefit
    2. This is for FHB deposit, not if you already have one
    3. Super is an investment like any other. Make your super defensive (i.e. more cash/bonds) if you dont want this risk.

    Its free money, take it.
     
    Last edited: 17th Jun, 2017
    Jasper likes this.
  3. Shaneo78

    Shaneo78 Well-Known Member

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    Melbourne
    My understanding is you are entitled to the scheme if you are looking for your first property as PPOR. If you have purchased a property previously for an investment purposes and not lived in the property, you should be entitled to the scheme.
     
  4. Toon

    Toon Well-Known Member

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    Usually FHB schemes are only accessible to people who have never owned property at all, regardless of whether it was an IP or PPoR.
     
  5. Lightning

    Lightning Member

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    I would definitely do it. like PerthPadawan said it is free money. You put in a dollar and get $1.18 back, guaranteed, depending on your marginal rate. Not many investments will give you that return on day one. If you and your partner contribute the max amount in a year or two you will have a deposit. Even better than salary sacrifice into Super as you don't need to wait till you are 65 to use it.
     
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  6. graydoh

    graydoh Member

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    Since when? This isn't a rule for the WA FHOG: About the First Home Owner Grant
     
  7. jprops

    jprops Well-Known Member

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    Actually, usually the opposite is true.
     
  8. Toon

    Toon Well-Known Member

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    The ones available when I built my first home specifically ruled out anyone who had owned any property previously.
     
    mikey7 likes this.
  9. mikey7

    mikey7 Well-Known Member

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    Hmm.. looks like you can own an IP in WA and still get FHOG :O
    I misread it as you couldn't.

    You are not eligible if:
    "at any time owned (either solely or with someone else) residential property in Australia other than property owned solely as trustee or executor".
    Other states are worded slightly differently, but say much the same (WA differs slightly, allowing IPs).

    Correct. From what I'm reading, they still say the same (except WA with an IP).
     
    Last edited: 15th Nov, 2017
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  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The scheme is a dead duck.It offers neraly nothing and lenders tightened rules erode any or all or more of any issue it could provide.
     
  11. Ed Barton

    Ed Barton Well-Known Member

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    I believe Rudd's version was more generous and it wasn't very popular.