Why Xenophon's Wants To Use Super for FHB Deposit?

  1. 2,186 Posts.
    I thought Xenophon was meant to be good guy, common sense, independent etc

    Now he's coming up with hairbrained schemes to encourage first home buyers to take their super and buy homes

    Independent Senator for South Australia, Nick Xenophon, will introduce legislative changes in the Spring session of parliament to allow first home buyers to access their superannuation savings to pay a house deposit.
    Such a scheme successfully operates in Canada, called Home Buyers’ Plan, leading to improved housing affordability.

    Only problem is, it isn't successful

    A University of Guelph thesis points out at least a third of all the first-timers who snatched down payment money this way between 1995 and 2007 didn’t actually pay it back, even when the annual repayment was less than 7% of the amount taken.

    And it didn't help affordability. On house price to incomes Canada is worse than Australia according to the IMF and same for prices to rents.

    http://www.idiottax.net/2014/08/nick-xenophon-needs-punch-in-face.html

    Funny though, you wonder where this is coming from, then you find out this..

    Senator Xenophon maintains an impressive portfolio of eight investment properties, along with Senator Barry O’Sullivan from the National Party who owns an incredible fifty properties (see Table 2). The high concentration of landed gentry in the Senate acts as a vested interest to pass policies which inflates housing (land) prices.

    http://www.macrobusiness.com.au/2014/08/aussie-politicians-300m-property-portfolio/

    Guess he's not interested in anything that actually helps affordability if it means his properties are worth less!

    Just take more money and throw it int the market!
 
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