Home Ownership Has Long Been Considered The Epitome Of

926 WordsMar 25, 20174 Pages
Home ownership has long been considered the epitome of success within Australian culture. A 2008 literature review highlighted almost 70% of the Australian population fall into two distinct categories on home ownership: outright ownership and mortgage repayments, (University of Western Sydney Urban Research Centre, 2008, p. 4). Outright home ownership comprises approximately 34% of the Australian population in the first category. Approximately 35% of the Australian population are currently repaying loans after obtaining a mortgage from an approved financial institution. Renting comprises approximately 29% of the current Australian population, (University of Western Sydney Urban Research Centre, 2008, p. 4). There appears to be a variety…show more content…
The average household income required to purchase property in Melbourne was $79,266, (Core Logic, 2016, p. 12). ADVANTAGES OF USING SUPERANNUATION TO PURCHASE A FIRST HOME The Australian Federal Government in recent years announced a contentious proposal in which first home buyers should access their initial superannuation savings to purchase their property. Most recent data from the Australian Bureau of Statistics (ABS) as of February 2015 highlighted the increase in first home buyer population in their early thirties to forties by 57%. This is in contrast to the greater number of first home buyers aged in their early twenties and thirties when housing was more affordable, (Marinos, 2015). The proposal for first home buyers using superannuation savings to finance the purchase of their first home was raised initially by now current South Australian senator Nick Xenophon and former Treasurer Joe Hockey MP back in 2014, (Marinos, 2015). The proposals forwarded by the South Australian independent senator are meritorious for two reasons. Firstly, home buyers seeking to gain ascendancy onto the real estate market can do so by purchasing property via superannuation funds, (Gadd, n.d.). Secondly, using a proportion of superannuation savings could result in the creation of affordable housing and the prevention of real estate speculation. The South Australian senator cites a housing affordability measure currently operating in

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