Parliament is set to debate whether First Home Buyers should be allowed to purchase property by having early access to their Superannuation. Proposed by Senator Nick Xenophon, this scheme will be similar to the one already in effect in Canada, where people can borrow as much as $25,000 from their Super and repay it in 15 years.
The proposed law has been met with mixed reactions; with others citing that this idea was taking government assistance too far, as this would create complications in cases of separation and if other circumstances take place. Others believe that the idea should be expanded to accommodate as much as $100,000 in borrowings to their Superannuation, as property values are expected to grow over time to cover this amount.
Will this new law serve as a solution to the Australian dream of owning a house, or will this pose a huge risk for one’s nest egg? The debate will be settled soon enough.
Read more about this on the Adviser website.