Killed Off! The Plan to Let Young People Use their Superannuation to Buy Houses


Words || Hans Lee 

So – it looks like it’s going to be off the table. At least at the time of writing this, anyway. In case you’ve been living under a rock for the last few days – or having so much to drink you don’t know who your trusted sources are, let me bring you up to speed.

The Government was/is considering an idea to let young people use their superannuation money to aid them in buying their first home.

Delusional, I say. DELUSIONAL, DO YOU HEAR.

First home buyers already have it tough. I would know – I’m 19, still living with the best family ever but under the same roof. Thirty years ago, that statement would read: “I’m 19 and living in my own apartment and renting semi-comfortably.” This proves two things – (a) that time is a relentless (you fill in the expletive) and (b) don’t we all hate those foreign investors.

So if I’m saying this, you’re probably thinking, Hans, why do you say the idea is delusional? We already have no money, so we have to get whatever else we can right? The house is needed, now.

And I hear you. I do.

Housing affordability is a disaster in Australia, particularly in our major cities. Sydney is amongst the most expensive places to live in the world, not to mention that the median house price has already topped seven figures. Part of that reason is investors: people who want to buy two, three, four houses and collect their rental income like Mr Krabs’ cash cow shower.

HOWEVER – you cannot and will not solve a national crisis by letting young people dipping into their retirement fund for the now.

Friendly Rivalry – House Edition

Imaging you and your best mate are fighting over the same house. You each want to be first to have those luxurious house parties and never want to let the other hear the end of it. The Government then says, “let’s let you dip into your superannuation. Whatever you want to give, we’ll match it dollar for dollar against your house.”

Now consider that both of you have superannuation from your part time jobs – because you know, you’re not a loser and you don’t live off welfare. BUT, you both have different jobs so your super levels are different – one is higher than the other.

You both proceed to bid for the house/apartment/investor-owned gold mine. You continue to outbid each other to the point that it starts to get unaffordable. So what do you do? You dip into your super. This last part of the process keeps repeating until the both of you realise you have way overdone it. All the vendor has to do is to sit back and watch that cash roll in.

And who was at fault the whole time?

You – you idiot. If you can’t afford it, YOU CAN’T AFFORD IT! Your superannuation is for your retirement, not for outbidding on a house to the point that you’re broke and can’t afford water.

There’s already a wealth gap

Consider that the investors in Australia are probably either Chinese travellers with suitcases or older Australians who have done some clever manipulating.

(Caveat: this means older Australians who are not migrants. Migrants have to build [almost always] from the ground up while being born in Australia is an automatic bonus.)

In economics, we call this a “wealth gap”. No – not between the traveller and the manipulator. I mean, between them and you.

If you’re having to buy a house off someone who owns five other properties, they will have to take wealth off you in order for you to take the land title. With both the wealth gap theory and the above situation in mind, what do you think happens?

The young get poorer and the old get richer. The exception of course is the young Chinese guy whose suitcase is full of his parents’ money. That is a whole different story. Twat.

And finally – Tony’s view

Believe it or not, the biggest supporter of this scheme is the former Prime Minister – Tony Abbott. I can hear your jeers already.

Here’s what he had to say, just recently:

“…one thing the federal government could do that would ease some of the demand pressure is to scale back immigration at least until land release and infrastructure can keep up…superannuation is not the government’s money, it’s the people’s money. And if people would prefer to use it to put down a deposit on a home rather than saving it up for 30, 40 or 50 years’ time, why not? So I think this is a good idea.” (Mr Abbott speaking to reporters, as quoted in Fairfax Media – April 2017)

Bruh, saving something up for life 30, 40, 50, 60 years down the track is the exact reason we have this entitlement. It’s a privilege that the system is already in place in this country, so why are we meddling and messing with it? Abbott’s treasurer, I might add (anyone remember Joe Hockey?) was the one who put into place a higher superannuation age access limit. The catch?

Not many young people have a bucket load in their superannuation accounts. Not all of us are maths geniuses or have rich parents with even filthier connections, you know.

Bottom line? Tony’s right. High immigration levels are putting upward pressure on land and housing prices. But they’re not the only ones to blame. There is a crisis in the misuse of land and the structure for which housing supply and demand is set up in this country. So next time you consider buying a house, think of how much money you really have.

And even more than that, put May 9, 7:30pm in your calendars – budget announcement time. That is the time you find out if life is about to get any easier or whether this Government will bow to wealthy pressure. It is in your best interests to listen. Trust me.

2SER – National Syndication: Thursdays 7pm | Fridays 9am AEST

Twitter: @hansleenews | Instagram: @hansshoots

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For further info, I had the headline story on my nationally syndicated finance show about this exact topic. Listen in – it’s worth it.