Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Latest


Must Read


PM Tech Growth Sales Marketing Industry

Our Events


REB Awards

The REB Awards is back for another year, and celebrating a decade long journey of recognising the most exceptional...

LEARN MORE
VIEW ALL
Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.

Superannuation plan would trigger ‘property bubble’: Louis Christopher

By Staff Reporter
12 March 2015 | 1 minute read

Joe Hockey has been warned that his idea to let young buyers dip into their superannuation would actually make housing less affordable.

The treasurer said he is concerned about the difficult position faced by first home buyers, and that Australians “need to have these conversations” about making super more flexible.

However, SQM Research managing director Louis Christopher said Mr Hockey’s idea would “promote a property bubble” if ever adopted.

Advertisement
Advertisement

“The problem is that tinkering with the property market in this way would only serve to artificially inflate demand for property and therefore push up house prices even higher than they are now,” he said.

Mr Christopher said such a policy would “have a similar distortionary effect” to the first home owner grant, which he said caused prices to rise in excess of the handouts.

He also said that Mr Hockey’s super idea would be impractical for most first home buyers in their twenties and thirties.

“With Sydney vendors now asking for over $1 million for a house, a 10 per cent deposit on a Sydney home raised through super would erode almost entirely the retirement savings of most people in that age group,” he said.

Mr Christopher said the way to make housing more affordable is not to increase but reduce government intervention – starting with negative gearing.

“Reducing negative gearing, a highly distortionary policy, would have a far more beneficial effect on promoting housing affordability,” he said.

“If negative gearing was repealed or altered, investors who are now gobbling up property would back off buying houses, which is what those who are demanding lower dwelling prices want to see.”

[Related: Sydney growth now ‘unsustainable’]

Superannuation plan would trigger ‘property bubble’: Louis Christopher
default
lawyersweekly logo

Tags:

Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.