Mortgage brokers in Rockingham, Baldivis, Kwinana and neighbouring areas have helped a lot of families buy their first homes in the last few years. If REIA (Real Estate Institute of Australia) President Peter Bushby has his way, it may be a lot easier for first home buyers in the near future.
Mr Bushby and the REIA want first home buyers to have access to their superannuation funds to come up with the deposit for their home and then pay it off over what he terms “a longer period.” This would allow Australians to buy homes much earlier in life, helping them save even more money for when they retire. This would, in effect, provide two “nest eggs”: the home and the super.
This idea is not original. In fact, first home buyers in New Zealand and Canada are allowed to access their supers to put deposits down on their first homes. This is especially important in Australia, though, as the average home price in the Perth market is expected to reach $1 million by 2025.
Instead of renting, first home owners would be amassing equity in their homes. In addition, access to super funds for a housing deposit can often provide enough funding to reach the 20% threshold and not have to buy Lenders Mortgage Insurance (LMI).
Call Smartline Rockingham Today
We know this hasn’t happened yet, but we are all in favour of anything that makes it easier for young families to enter the housing market and start collecting equity. We know that it’s difficult to break through and buy that first home for a lot of Australians right now. Allowing access to supers would open the market to a lot of people who would otherwise be renting for the next five to ten years.
Remember, though: if you are still a renter, you may have more resources than you think. Call one of our mortgage brokers at Smartline Rockingham and find out what options you have. It may be the best phone call you ever make: (08) 9527 1800.