Just read that the feds are thinking of allowing ( I think anyone?) to use their super to finance a property purchase.
In the past this could only be done for those with SMSF?
Now, in order to assist FHB segment and maybe others get into the market, an idea has surfaced to let them use their super to break into the market.
Just talk at this point, no decisions made yet.
Is this a good idea? I would have thought not. Allowing FHBs to deplete their super to get into the market will serve to only increase house prices, thereby making it tougher for other FHBs with not much super to get in.
Also, the real danger is that once super (largely protected asset) is depleted into property ( largely unprotected), that money can be gotten out and used for pretty much anything. e.g. If I use 50k from my super to finance a house purchase, I can then withdraw equity (assume 50k or whatever the bank will lend me) on my house and use it for whatever I wish (vacation, blackjack tables etc). This is then like taking money from super directly to finance other means. Surely, that's dangerous.
It could work provided that the money is used wisely, and equity is used only for wise purposes ( like securing other investments) but that is not always the case and can spell real danger if not careful- I think it takes an educated investor for this and a lot of FHB;s are just not ( no offense to any FHBs...)
In the past this could only be done for those with SMSF?
Now, in order to assist FHB segment and maybe others get into the market, an idea has surfaced to let them use their super to break into the market.
Just talk at this point, no decisions made yet.
Is this a good idea? I would have thought not. Allowing FHBs to deplete their super to get into the market will serve to only increase house prices, thereby making it tougher for other FHBs with not much super to get in.
Also, the real danger is that once super (largely protected asset) is depleted into property ( largely unprotected), that money can be gotten out and used for pretty much anything. e.g. If I use 50k from my super to finance a house purchase, I can then withdraw equity (assume 50k or whatever the bank will lend me) on my house and use it for whatever I wish (vacation, blackjack tables etc). This is then like taking money from super directly to finance other means. Surely, that's dangerous.
It could work provided that the money is used wisely, and equity is used only for wise purposes ( like securing other investments) but that is not always the case and can spell real danger if not careful- I think it takes an educated investor for this and a lot of FHB;s are just not ( no offense to any FHBs...)