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.
How do buyer’s agents pick the best property to invest in? although there is no fool proof method in property investment, the Property Observer has some tips from buyer’s agents, their success stories and the lessons they learned along the way.
According to Rich Harvey, Managing director of Property Buyer, often investors confuse between Research and Search. Investors should keep in mind that property is a long-term investment that requires a carefully thought out plan. Researching on the market performance during lean months is a good gauge as to how the investment performs overall.
Meanwhile, Jacque Parker, director of House Research Australia advice that investors should purchase property in an area where the majority can afford rent.
If you wish to read the full article, head to the Property Observer website.
Is now a good time to buy a property or home? RP Data posted this question on their Nine Rewards survey. Nationwide, 74% of respondents believe so. This was slightly lower than the results for last year at 76%. Meanwhile, 56% of the respondents believe that this is the right time to sell, with Sydney taking the lead at 73.7% after posting the strongest auction results over the weekend.
Although the nation is showing optimism in the property sector, it is also important to note that as part of the survey, a question was asked whether Australia’s housing market is vulnerable to a significant correction in values. 60% of the respondents think so, showing uncertainty for the future of this sector. Home buyers are encouraged to proceed with caution and to consult licensed financial planners if they plan on investing in property.
For the complete survey results, read more on the Property Observer website.