A plan to allow first home buyers to access their superannuation for a deposit is “out-of-control thinking” according to an Australian economist.
Lindsay David, economist and author of Australia Boom to Bust, told The Newsroom Independent Senator Nick Xenophon’s proposed legislation was short sighted.
“Unfortunately, at this immediate point in time yes it will [help them]. It will help young people get into more debt then they should take on,” he told The Newsroom.
“Every time new legislation allows for individuals to tap into more cash for a deposit (whether it be a home owner grant or access to super) it has created a sharp spike in lending, which has pushed property prices higher. This is what the data and history tells us”.
Top photo of potential first home buyers by Mohammad Rassawala.