Real estate lobby group pushes for Canadian-style first home buyers scheme
The Real Estate Institute of Australia is urging the government to adopt a successful Canadian scheme that allows first-home buyers to tap into their superannuation to assist with making their first purchase.
The Canadian Home Buyer's Plan has been in operation since 1992 and allows first-home buyers to withdraw up to $25,000 from their retirement savings plan to purchase or build a home.
The scheme has proven popular, with nearly 1.4 million Canadians withdrawing money from their retirement savings to participate in the plan between 1992 and 2004.
"The Canadian Home Buyer's Plan is the perfect example of this proposal in action and REIA would like to see it implemented in Australia as a solution to overcome the problems faced by first-home buyers."Newsflash. They aren't participating because prices are too high. If there are no longer enough buyers at elevated prices, then prices will come down until those buyers can enter the market, entirely with traditional financing. Encouraging them to borrow from themselves serves only those with an interest in propping up the market; it does not serve the buyer. The repayment requirement to the retirement plan will still be part of the household's ongoing debt load.