Australia Property Market Update: First Home Buyers Shift Strategy as Regional Demand Grows
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What is the main topic discussed in this episode?
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What alternative strategies are first-home buyers exploring?
One Brisbane renter has taken a very different path buying an investment property using her superannuation, even though the law means that she can never actually live in it. You have been working since 16 and the idea of buying a home the traditional way still felt financially overwhelming to you like a lot of Aussies. So understandably, you didn't want to spend decades buried under a huge mortgage. Instead, you wanted to take a different pathway, one that could help you grow your wealth and build some security for your retirement. This is all sort of illuminated to what you've done here.
How can superannuation be used for property investment?
Yeah, 100%. Definitely didn't want to live under, especially with today's house prices, you know, a huge 95% mortgage, trying to pull the deposit together. It did feel like it was overwhelming.
Tell the people listening that by using your superannuation for the deposit, you were able to put down a much larger upfront payment and keep the overall mortgage smaller. So just talk through all of that.
What are the legal restrictions on using superannuation for property?
yeah for sure so i looked at pulling together a deposit by yourself i'm a single person it's quite difficult when you think about the average price of a house or a townhouse being you know seven hundred thousand eight hundred thousand nine hundred thousand dollars but when you've been working you know since you're a teenager which most of us have your super has been accruing and and getting higher every year so you've got a pretty good lump sum in there if you can utilize that as your deposit Yeah, you can then get a mortgage using a much larger deposit, which is a much smaller mortgage overarchingly. And you can service it by having a renter. And then just your normal superannuation deposits are coming from your employer.
And when you buy property using superannuation... The rules as I mentioned, they are very strict. The home must be treated purely as an investment. That means that you, your family or your friends can never live in this property. The property must remain rented out. with rental income and super contributions helping service the loan. Do you think, given the set of circumstances around the housing problems that we are suffering, that that rule needs to change?
I do. And I do think that it's a balance because at the end of the day, your super is there to build your wealth for your retirement. But it's when you get to retirement that you would think, well, now I've got a property that I could move into and that's perfect. You know, I'm setting myself up.
How is the regional property market performing compared to capital cities?
But in fact, you would have to sell that property or you'd have to sell it to yourself at market rates. I'm not 100% certain on all of the legalities of it, but you would think that you would be able to then, once you're in retirement and the whole point of super is to get you to retirement, you'd be able to use that asset that you
And as somebody who's been working since 16 years of age, you're into the property market. What sort of a relief factor is there, you know, knowing that you've got this property and knowing that it's going to be paid down in terms of the mortgage? Has there been a sort of a change internally for you?
A hundred percent. When I was looking at purchasing a property, you know, outside of my super, so with my just salary money, it was overwhelming watching those prices skyrocket and realising that, you know, I kind of felt like I'd missed the boat. The whole point for me of buying property is to set myself up for retirement, being in my mid forties. So now I have that safety net almost. It just makes it, it doesn't mean that I won't buy another property. It just means that it takes the
What factors are driving demand in regional areas?
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:02–0:08
2
What alternative strategies are first-home buyers exploring?
0:08–0:50
3
How can superannuation be used for property investment?
0:50–1:16
4
What are the legal restrictions on using superannuation for property?
1:16–2:43
5
How is the regional property market performing compared to capital cities?
2:43–3:49
6
What factors are driving demand in regional areas?
3:49–5:37
7
How are first-home buyers shifting their focus to more affordable regions?
5:37–6:25
8
What are the current trends in the Ballarat property market?
6:25–18:15
Speakers
5 identifiedMore from Aussie Real Estate Podcast
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