Why Super for Housing is a bad Idea
youtu.be
My first collab with Aus Unionshttps://linktr.ee/purplepingers

NOTE: Video sponsored by the ACTU

Key points

  • It would make house prices increase by more than the maximum amount people could withdraw
  • It would cost the government $1 trillion in the long run
  • It would leave people with $200k less in retirement savings
  • It would significantly affect the returns on all superannuation as funds would need to keep more cash reserves uninvested so it is available for withdrawal
  • Ada@lemmy.blahaj.zone
    94·
    6 months ago

    So people remain excluded from property ownership, but hey, at least the economy will be ok

      • Ada@lemmy.blahaj.zone
        21·
        6 months ago

        Sorry, I was being a bit tongue in cheek there. The economy will continue to be shit for people who struggle to afford home ownership whether or not they can use superannuation to help get their foot in the door.

        • wscholermann
          7·
          6 months ago

          I think the point is if you are trying to fix housing early withdrawal of super is not the answer for all the reasons given.

          There are other solutions and it would take multiple policies working in tandom.

          • Ada@lemmy.blahaj.zone
            2·
            6 months ago

            Sure, but by the time those solutions are in place, another generation of people will have been denied the chance to own property, which has generational consequences on economic and educational outcomes for those families.

            The answer is short term relief combined with long term change. Denial of short term relief because of hypothetical long term strategies that aren’t going to be implemented helps no one.

            • wscholermann
              4·
              6 months ago

              Super is not the short term relief you are looking for though… More people floating around with more money would just push up the prices even more, offsetting any benefit from withdrawing super.

              Now if we started talking about increasing supply perhaps, that would be a different story.

    • quicken
      21·
      6 months ago

      That’s just a stupid comment. You could take the 1 trillion dollars it would cost the Australia government and spend it on any number of things to make ownership easier.

      • Ada@lemmy.blahaj.zone
        2·
        6 months ago

        You could take the 1 trillion dollars it would cost the Australia government and spend it on any number of things to make ownership easier.

        That’s true. The issue is, they’re not going to implement any of those ideas…

        So people who can’t enter the housing market remain fucked over, because the imperfect ideas that might actually get off the ground get set aside in favour of better ideas that will never see the light of day.