This is the cost of living election… so it’s only appropriate… that the last week of the campaign… is starting with a debate over housing affordability.

At the Coalition campaign launch on Sunday… Scott Morrison made a last-minute pitch… to voters who haven’t been able to get into the property market.

He unveiled a bold plan… that would allow any first home buyer… to dip into their superannuation… to come up with a bigger deposit to secure a loan.

Under the new plan… people could withdraw… up to 40 percent of their super balance… to a maximum value of 50 thousand dollars.

It has to be used on a first home… and there’s no restrictions on income… so those on low or high incomes can do it.

When the property is sold… the amount withdrawn… must go back into your super account… along with a share of any capital gains.

Of course… if the price of the house goes down… well… the amount you have to put back into your super goes down too.

So… how does this compare to Labor’s affordable housing policy?

For starters, it’s a lot simpler.

Labor’s Help to Buy scheme… would see the federal government…. Contribute 30 to 40 percent of the cost of a home… which must be paid back when the property is sold…

Or when the owner starts to earn … more than 90 grand for singles… and 120 grand for couples.

So, it’s a bit like a HECS debt… only the government is underwriting your house… not your education.

Of course… the big question now for voters… is which policy is best.

And unfortunately… there’s no easy answers.

Labor’s scheme is limited… to only 10,000 applicants per year.

But that might actually be a selling point.

At such a small number… it’s unlikely to move the needle much… when it comes to house prices.

You can’t say the same.. for the Coalition scheme.

By removing the traditional handbrake that is saving up a deposit… the Coalition superannuation plan… will see many more first homebuyers enter the market… and there are those who believe… with some justification… that this will only serve… to raise house prices even more… than they already are.

At a time when rents and house prices… are more unaffordable than ever… the last thing we need… is a buying frenzy… fuelled by people who think their superannuation… can be spent like monopoly money.

Where you stand on these two policies… probably depends a lot… on where you are currently standing… on the property treadmill.

And because it is so dependant… on individual circumstances… it’ll be fascinating to see how this manifests at the ballot box on Saturday.

This is the cost of living election&hellip; so it&rsquo;s only appropriate&hellip; that the last week of the campaign&hellip; is starting with a debate over housing affordability.
At the Coalition campaign launch on Sunday&hellip; Scott Morrison made a last-minute pitch&hellip; to voters who haven&rsquo;t been able to get into the property market.
He unveiled a bold plan&hellip; that would allow any first home buyer&hellip; to dip into their superannuation&hellip; to come up with a bigger deposit to secure a loan.
Under the new plan&hellip; people could withdraw&hellip; up to 40 percent of their super balance&hellip; to a maximum value of 50 thousand dollars.
It has to be used on a first home&hellip; and there&rsquo;s no restrictions on income&hellip; so those on low or high incomes can do it.
When the property is sold&hellip; the amount withdrawn&hellip; must go back into your super account&hellip; along with a share of any capital gains.
Of course&hellip; if the price of the house goes down&hellip; well&hellip; the amount you have to put back into your super goes down too.
So&hellip; how does this compare to Labor&rsquo;s affordable housing policy?
For starters, it&rsquo;s a lot simpler.
Labor&rsquo;s Help to Buy scheme&hellip; would see the federal government&hellip;. Contribute 30 to 40 percent of the cost of a home&hellip; which must be paid back when the property is sold&hellip;
Or when the owner starts to earn &hellip; more than 90 grand for singles&hellip; and 120 grand for couples.
So, it&rsquo;s a bit like a HECS debt&hellip; only the government is underwriting your house&hellip; not your education.
Of course&hellip; the big question now for voters&hellip; is which policy is best.
And unfortunately&hellip; there&rsquo;s no easy answers.
Labor&rsquo;s scheme is limited&hellip; to only 10,000 applicants per year.
But that might actually be a selling point.
At such a small number&hellip; it&rsquo;s unlikely to move the needle much&hellip; when it comes to house prices.
You can&rsquo;t say the same.. for the Coalition scheme.
By removing the traditional handbrake that is saving up a deposit&hellip; the Coalition superannuation plan&hellip; will see many more first homebuyers enter the market&hellip; and there are those who believe&hellip; with some justification&hellip; that this will only serve&hellip; to raise house prices even more&hellip; than they already are.
At a time when rents and house prices&hellip; are more unaffordable than ever&hellip; the last thing we need&hellip; is a buying frenzy&hellip; fuelled by people who think their superannuation&hellip; can be spent like monopoly money.
Where you stand on these two policies&hellip; probably depends a lot&hellip; on where you are currently standing&hellip; on the property treadmill.
And because it is so dependant&hellip; on individual circumstances&hellip; it&rsquo;ll be fascinating to see how this manifests at the ballot box on Saturday.

If you enjoyed listening to The West Live for your daily news fix, then come and join us over on The Nightly Five.  Host Ben O’Shea continues to deliver punchy news and analysis, in a new podcast to get you in front of tomorrow’s news today!  Subscribe on your favourite podcast player and visit the thenightly.com.au

If you enjoyed listening to The West Live for your daily news fix, then come and join us over on The Nightly Five.  Host Ben O’Shea continues to deliver punchy news and analysis, in a new podcast to get you in front of tomorrow’s news today!  Subscribe on your favourite podcast player and visit the <a href="https://thenightly.com.au">thenightly.com.au</a>

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