iscover
iscover 
The Liberal Party announced its intentions to allow Aussies to access $50,000 worth of superannuation to put towards a house deposit.
As previously reported by Broker Daily, there are critics of this plan as the young people whom this initiative is targeting likely don’t have $50,000 in their super.
Further, there were fears that allowing this access to super would cause house prices to spike as more and more people enter the market.
Research from the University of South Australia has suggested that cost fears are warranted, with study author, Professor Chris Leishman, saying house prices would rise by 7.4–10.3 per cent.
The average median house price across Australia’s capital is reportedly $897,600. These changes would see a price hike of $92,500, reaching a new median of $990,100.
For mortgage holders, this would see a fortnightly repayment increase of $260, adding an extra $202,800 to the life of the loan.
Broken down, the report said Sydney would see median house prices rise by an extra $122,900, $92,000 in Brisbane, $79,500 in Melbourne, $84,400 in Adelaide, and $83,400 in Perth.
Professor Leishman said that these findings are unsurprising as increased activity drives prices up.
“The very close range of estimates despite using different data and methodologies for each means we are very confident in concluding the proposal would be inflationary,” he said.
“It is an uncontroversial finding – if you add demand to an inelastic market, prices are going to rise, with the unintended consequence of making housing less affordable.”
Super Members Council CEO Misha Schubert commented on the Dutton government’s plan: “Raiding retirement savings for house deposits would just unleash a supercharged price hike in house prices, not create more new home buyers.
“That would mean home buyers in future would have to pay higher repayments on bigger mortgages for longer, worsening housing affordability and cost-of-living pressures on younger Australians.
“Taking super out for house deposits will just further drive-up house prices, fuel higher mortgages and debt stress in a cost-of-living crisis, and push the great Australian dream of home ownership even further out of reach for many young Australians. And if people retire with less super, that will also push up age pension costs – a bill that every Australian taxpayer would pay.”
Regardless, the Coalition is steadfast in its election promise. Both parties have ramped up housing-related policies in recent months to try and sway voters before the federal election in May.
Housing has become a key concern for voters, along with cost of living. As the time to election narrows, voters should expect more and more housing-related promises from the parties.
[Related: Allowing access to super for house deposits could disadvantage young Aussies]
