Gen Y want to tap super to fund first home
With the launch of Mozo’s First Home Buyers Hub we decided to survey Gen Y first homebuyers to find out which way they would most like to fund their home.
While almost half said they would diligently save for their first property, 47% wanted early access to their superannuation or for their employer to salary sacrifice in order to fund their first home purchase.
Mozo director Kirsty Lamont said the results showed Gen Y view entering the property market by saving alone as “unattainable”, and wanted the Government to seriously consider superannuation as the solution. However Lamont warned using superannuation to fund property sounds good in theory but it’s not the silver bullet for first homebuyers.
“First homebuyers need to consider stamp duty, mortgage interest, property maintenance costs and making up for the lost returns your super could have earned.”
“With this seemingly quick fix what’s also lost is the important discipline of regular savings, which can become a harsh reality when the mortgage repayments start,” said Lamont.
The research also showed two in ten would prefer a no deposit home loan and one in ten would rather tap a relative on the shoulder to receive an early windfall.
Lamont said, “those waiting for an inheritance might be disappointed to find there isn’t enough to cover the deposit amount or it’s being earmarked for something or someone else.”
While the Government cut its First Home Saver accounts in this year’s Federal Budget, Lamont advised there are still ways to accelerate the savings process by living off one salary if you’re a couple, selling off any unnecessary assets like a second car or moving in with the parents.