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They feel they need a helping hand and would also like their employer to salary sacrifice to help them fund their first home purchase.
New research by financial comparison site Mozo.com.au, asked how first homebuyers would prefer to fund their purchase if given an option.
Just under half said they would diligently save for their first property, almost the same number were prepared to forego their retirement savings to get started.
Mozo director Kirsty Lamont said first home buyers were thinking laterally about how they could get into the market.
“I was surprised that so many first home buyers felt that it was impossible to enter the property market through savings alone,” she said.
She said while to many people tapping into your superannuation fund to buy your first home was a radical idea, first home buyers felt they needed an alternative.
“In effect we are talking about using your superannuation to invest in property, it sounds like a good idea but in reality there are risks involved,” she said.
Ms Lamont said it was clear gen Y felt it was unattainable to enter the property market by saving alone, and wanted the Government to seriously consider superannuation as the solution.
Other suggestions by first home buyers was to be able to borrow the full purchase price without a deposit.
“Using superannuation to fund property sounds good in theory but it’s not the silver bullet for first homebuyers,” Ms Lamont said.
“First homebuyers need to consider stamp duty, mortgage interest, property maintenance costs and making up for the lost returns your super could have earned.”
“With this seemingly quick fix what’s also lost is the important discipline of regular savings, which can become a harsh reality when the mortgage repayments start.”
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